Builders are back!

Builders are back
	Builder confidence indicates good things to come for the housing market
	Some of the sights and sounds in Chicago neighborhoods today -- jackhammers, saws and cranes swinging overhead -- may strike a familiar chord to those who witnessed the real estate boom a decade ago. Now, they're abuzz again, and builder confidence is a positive sign for the overall market. Developers' bullish sentiment is no surprise. Historically low interest rates are fueling buyer confidence and sending home sales sharply higher. What's more, pent-up demand has resulted in dwindling inventory, and new construction is no exception. In fact, according to Appraisal Research Counselors, developers today are sitting on only 1,000 unsold condos in downtown Chicago, compared with more than 8,000 in 2008. Our own research found that low-rise condo construction in Lincoln Park and Lakeview doubled from 2011 to 2012. @properties Market Minute: Standing out is key in real estate marketing. Watch the video to learn more. It's interesting to note that while technology and tastes have changed since the peak of home construction in 2006 (the iPhone was launched in 2007; the iPad in 2010), the fact that so few homes have been built since then means housing is just beginning to catch up with today's lifestyles. Innovations start at the top of the food chain and work their way down. So the smart-home technology that enables buyers of today's $4 million home to remotely control their living environment is likely to be standard fare in tomorrow's $400,000 condominium. Already we have begun to see "next-gen" features and amenities in the city's newest apartment high-rises. (We're talking Bluetooth audio, environmentally friendly building products, yoga rooms and gourmet coffee bars). That's a big reason why many people continue to rent even though, in many cases, owning is more affordable. But a new crop of condominium developments is now on the drawing boards, and they will raise the bar yet again. After all, Chicago is the birthplace of the modern skyscraper, and headquarters for many of the world's leading architects. Over the past decade, they have pushed the envelope with projects in the Middle East, China and India. Their return to Chicago will showcase worldly influences and innovative design. For-sale new construction is back, and it's in high demand. While most of today's developments are small in scale, it's only a matter of time before an ambitious project captures Chicago's imagination once again. As the city's #1 seller of new-construction and condominium conversions, @properties is your go-to source for what's happening in the development marketplace. If you have questions about new construction, be sure to contact me. And for an in-depth look at new-construction and overall condo pricing and trends, click here to download our latest @report, a market study prepared for our developer clients - and now available to you. In the news: Empires of the Sun April 4 | Blum, Doland, and Jackson The lakefront towns in and around New Buffalo, Mich., are the preferred destination for second home buyers in Chicago. Last year, 25 beachfront properties sold, five times the amount in an average year, brokers say. More Rate on 30-Year Mortgage Falls to 3.43% April 11 | Marcy Gordon Average rates on fixed mortgages fell sharply this week and moved closer to historic lows, keeping home-buying and refinancing attractive. Mortgage buyer Freddie Mac said Thursday that the average rate for 30-year fixed loans fell to 3.43% from 3.54% last week. That's near the 3.31% reached in November, which was the lowest on records dating to 1971. More Home Prices Up 10.2 Percent in February April 4 | Peter Ricci Home prices nationwide rose a sterling 10.2 percent year-over-year in February, according to the latest CoreLogic Home Price Index.A leading measure on home price activity, the Home Price Index has been rising with impressive strength for a full year now, and February's 10.2 percent increase represents the Index's strongest yearly increase since May 2006. More