The New Normal Feeling
A Bit More...Well...Normal
Over the last few years, there has been a lot of talk in real estate circles about "the New Normal." At first, the New Normal meant the days of double-digit price appreciation were over. Then the financial crisis hit, and suddenly the New Normal became a barrage of bad news that seemed to never end. Eventually, the economy started to regain its footing, the Housing Tax Credit took hold, and the Chicago real estate market enjoyed a rally through the spring of 2010. Today, the tax credit is gone, and while trouble spots remain, the general sentiment is the worst is behind us. Finally, the New Normal is starting to feel a bit more...normal.
A number of data points support the trend toward normalization. Home prices as tracked by the Case Shiller index have returned to the historical trend line, and April marked the 12th straight month of improvement in the Chicago index. Though the data still shows a year-over-year price decline in the city, the fall-off has slowed dramatically. The inventory picture is also far more stable with a 10.4 month supply of homes on the market - a reduction of about 50 percent since June 2008.
The city housing market remains challenging, but equilibrium is slowly returning, which means today's low prices and record-low mortgage rates make the next six to twelve months a prime opportunity - especially for first-time and move-up buyers.
#1 in Chicago
Yet another phenomenon that is becoming the norm is seeing @properties atop the Chicago real estate market. Through the halfway point of 2010, in the city, @properties was #1 in total transactions, #1 in shortest average market time, #1 in dollar volume sold, and #1 in market share. We continue to gain strength, add marketing programs and increase our level of service for Chicago homebuyers and sellers - all of which gives our clients a distinct advantage in the marketplace. Thank you for making @properties #1.
I'd be delighted to help you gain (or regain) perspective on the real estate market in your area. Please feel free to contact me anytime. And if someone you know is looking to buy or sell a home, remember that I always appreciate your referrals.
Dave Straub
Realtor,@properties
Illinois Licensed Real Estate Salesperson
Member, NAR, IAR, CAR, MLS
773.255.3180 DIRECT
Thursday, July 15, 2010
Friday, July 2, 2010
Drop in Interest Rates
Drop in Interest Rates
a Welcome Surprise
Just about everyone (myself included) expected mortgage interest rates to rise when the Treasury Department ended its $1.25 trillion purchase of mortgage-backed securities in March. But Europe's ongoing debt crisis has driven investors to the safety of Treasury notes, a benchmark for mortgage interest rates. And as the yield on Treasuries has come down so too have mortgages. Bankrate.com, a website that tracks interest rates, said it was hard to identify the last time mortgage rates were this low, but estimates put the timeline in the fall of 1956. Sock hop, anyone?
This latest development should come as welcome news to both home buyers and sellers. For buyers, today's interest rates could be even more valuable than the recently expired Federal Housing Tax Credit. The chart below compares today's interest rates with those from a year ago to illustrate the monthly, annual, 5-year and 10-year savings for a range of conforming and jumbo loan amounts. On loans upwards of $300,000, the 5-year savings exceed the maximum $8,000 tax credit. On jumbo loans, the savings are far more substantial.
Sellers also have reason to cheer the recent drop in rates. Bearish housing analysts predicted that the absence of the tax credit and an anticipated spike in interest rates would put new downward pressure on prices, which have begun to tick up in many markets and submarkets. With rates moving in the other direction, cheap money should help buoy prices - hopefully until the Europe situation and U.S. employment picture begin to brighten. Lower rates also create a wider pool of home buyers and should provide a sense of urgency to house hunters who are in the market this summer.
Source: Bankrate.com 30-year fixed-rate mortgage index, 6/23/10
For more information on how today's historically low interest rates affect your buying power or selling strategy, feel free to contact me. And remember, I always appreciate your referrals.
Dave Straub
Realtor,@properties
Illinois Licensed Real Estate Salesperson
Member, NAR, IAR, CAR, MLS
773.255.3180
a Welcome Surprise
Just about everyone (myself included) expected mortgage interest rates to rise when the Treasury Department ended its $1.25 trillion purchase of mortgage-backed securities in March. But Europe's ongoing debt crisis has driven investors to the safety of Treasury notes, a benchmark for mortgage interest rates. And as the yield on Treasuries has come down so too have mortgages. Bankrate.com, a website that tracks interest rates, said it was hard to identify the last time mortgage rates were this low, but estimates put the timeline in the fall of 1956. Sock hop, anyone?
This latest development should come as welcome news to both home buyers and sellers. For buyers, today's interest rates could be even more valuable than the recently expired Federal Housing Tax Credit. The chart below compares today's interest rates with those from a year ago to illustrate the monthly, annual, 5-year and 10-year savings for a range of conforming and jumbo loan amounts. On loans upwards of $300,000, the 5-year savings exceed the maximum $8,000 tax credit. On jumbo loans, the savings are far more substantial.
Sellers also have reason to cheer the recent drop in rates. Bearish housing analysts predicted that the absence of the tax credit and an anticipated spike in interest rates would put new downward pressure on prices, which have begun to tick up in many markets and submarkets. With rates moving in the other direction, cheap money should help buoy prices - hopefully until the Europe situation and U.S. employment picture begin to brighten. Lower rates also create a wider pool of home buyers and should provide a sense of urgency to house hunters who are in the market this summer.
Source: Bankrate.com 30-year fixed-rate mortgage index, 6/23/10
For more information on how today's historically low interest rates affect your buying power or selling strategy, feel free to contact me. And remember, I always appreciate your referrals.
Dave Straub
Realtor,@properties
Illinois Licensed Real Estate Salesperson
Member, NAR, IAR, CAR, MLS
773.255.3180
Monday, June 7, 2010
After the Tax Credit
What to do now
So the Housing Tax Credit has come and gone. The Treasury Department estimates that 1.8 million people took advantage of the credit at a cost to the government of about $13 billion. For those who missed out on the credit, there may be a tinge of disappointment. But in the days following the deadline we at @properties have been reassured by healthy market activity in showings, listings and contracts. Still, with the tax credit in the history books, it's a good time to ask, "What should I do now?"
If you're a buyer who was in the market prior to April 30, you've answered an important question. It's not just about finding the right deal. It's about finding the right home. The fact is buying a home today is a longer-term proposition than it was a few years ago, and a home has to work for you not only as a place to invest but as a place to live. From that point of view, $8,000 probably isn't a make or break. Of course that doesn't mean the right deal isn't out there – especially with today's low mortgage rates and plentiful inventory.
If you're a seller now is a good time to step back and evaluate pricing and positioning. With the increase in recent transaction volume, there are more comparable sales today than six months ago. If your home has been on the market for a while, it's a good idea to revisit the comparative market analysis. But it's also important to point out that we at @properties do not subscribe to the notion – as some brokers do – that sellers need to fill the government's role as a provider of homebuyer subsidies by automatically dropping asking prices or offering cash credits. The market needs to stand on its own, and we believe it can and will.
If you have questions about the real estate market, post tax credit, please contact me.
Celebrating 10 years and a new office
Finally, last month brought two important milestones for @properties. First, we announced that we will be opening a new North Shore office in Winnetka. We are set to begin construction on the office on Green Bay Road this month and should be open by late summer 2010. We are excited about serving the North Shore from this new location.
April also marked @properties' 10th anniversary. We opened our doors back in spring 2000 with one goal: to provide the best real estate brokerage service in Chicago. Today, we're the #1 broker in the city and the fastest-growing firm on the North Shore. Most importantly, our goal remains the same, and we're working harder than ever to see it through. Thank you to all of our clients, associates, partners, family and friends for making @properties a success.
Dave Straub
@properties
773.255.3180
http://www.atproperties.com/agents/davestraub/listings
So the Housing Tax Credit has come and gone. The Treasury Department estimates that 1.8 million people took advantage of the credit at a cost to the government of about $13 billion. For those who missed out on the credit, there may be a tinge of disappointment. But in the days following the deadline we at @properties have been reassured by healthy market activity in showings, listings and contracts. Still, with the tax credit in the history books, it's a good time to ask, "What should I do now?"
If you're a buyer who was in the market prior to April 30, you've answered an important question. It's not just about finding the right deal. It's about finding the right home. The fact is buying a home today is a longer-term proposition than it was a few years ago, and a home has to work for you not only as a place to invest but as a place to live. From that point of view, $8,000 probably isn't a make or break. Of course that doesn't mean the right deal isn't out there – especially with today's low mortgage rates and plentiful inventory.
If you're a seller now is a good time to step back and evaluate pricing and positioning. With the increase in recent transaction volume, there are more comparable sales today than six months ago. If your home has been on the market for a while, it's a good idea to revisit the comparative market analysis. But it's also important to point out that we at @properties do not subscribe to the notion – as some brokers do – that sellers need to fill the government's role as a provider of homebuyer subsidies by automatically dropping asking prices or offering cash credits. The market needs to stand on its own, and we believe it can and will.
If you have questions about the real estate market, post tax credit, please contact me.
Celebrating 10 years and a new office
Finally, last month brought two important milestones for @properties. First, we announced that we will be opening a new North Shore office in Winnetka. We are set to begin construction on the office on Green Bay Road this month and should be open by late summer 2010. We are excited about serving the North Shore from this new location.
April also marked @properties' 10th anniversary. We opened our doors back in spring 2000 with one goal: to provide the best real estate brokerage service in Chicago. Today, we're the #1 broker in the city and the fastest-growing firm on the North Shore. Most importantly, our goal remains the same, and we're working harder than ever to see it through. Thank you to all of our clients, associates, partners, family and friends for making @properties a success.
Dave Straub
@properties
773.255.3180
http://www.atproperties.com/agents/davestraub/listings
Monday, April 19, 2010
Chicago's Temperate Spring
Chicago's Temperate Spring
(the weather's not bad either)
A real spring. It's a rarity in Chicago. We're talking flowers, warm weather and picture perfect Opening Days on both sides of town. Spring 2010 not only arrived with great weather; it revealed a fair real estate market as well.
A sampling of data from nearly 40 Chicago neighborhoods and North Shore communities shows a market that is vastly improved from last year. At properties analyzed inventory, sales and market times from the first quarter of 2009 vs. the first quarter of 2010. Year-over-year sales activity was up significantly from Hyde Park to Lake Forest and inventory levels and market times came down as buyers and sellers moved closer on price in a number of submarkets.
Closed sales were up 100% or more in several areas, including Lincoln Park, Rogers Park and the Loop in the city, and Highland Park, Kenilworth, Lake Bluff, Lake Forest and Northbrook on the North Shore – an encouraging sign heading into the peak spring market. A nearly universal increase in homes under contract seems to confirm the notion that the market is gaining traction.
Still, with predictions and postulations filling the spring air like milkweed, the next couple of months will be an important measure of the local market. Fortunately, it's easy to stay informed with At properties' Market Reports. Just log on and choose a neighborhood or town from the interactive map. Then view the latest market data. Of course, numbers alone don't account for all of the factors affecting real estate in your neighborhood. For that, there's nothing like a knowledgeable REALTOR®.
Spring in Chicago can be unpredictable, but at least this spring's real estate market is looking a little more temperate. So, if you or someone you know is thinking about buying or selling a home in the coming months, please contact me. And remember, I always appreciate your referrals.
Dave Straub 773.255.3180
(the weather's not bad either)
A real spring. It's a rarity in Chicago. We're talking flowers, warm weather and picture perfect Opening Days on both sides of town. Spring 2010 not only arrived with great weather; it revealed a fair real estate market as well.
A sampling of data from nearly 40 Chicago neighborhoods and North Shore communities shows a market that is vastly improved from last year. At properties analyzed inventory, sales and market times from the first quarter of 2009 vs. the first quarter of 2010. Year-over-year sales activity was up significantly from Hyde Park to Lake Forest and inventory levels and market times came down as buyers and sellers moved closer on price in a number of submarkets.
Closed sales were up 100% or more in several areas, including Lincoln Park, Rogers Park and the Loop in the city, and Highland Park, Kenilworth, Lake Bluff, Lake Forest and Northbrook on the North Shore – an encouraging sign heading into the peak spring market. A nearly universal increase in homes under contract seems to confirm the notion that the market is gaining traction.
Still, with predictions and postulations filling the spring air like milkweed, the next couple of months will be an important measure of the local market. Fortunately, it's easy to stay informed with At properties' Market Reports. Just log on and choose a neighborhood or town from the interactive map. Then view the latest market data. Of course, numbers alone don't account for all of the factors affecting real estate in your neighborhood. For that, there's nothing like a knowledgeable REALTOR®.
Spring in Chicago can be unpredictable, but at least this spring's real estate market is looking a little more temperate. So, if you or someone you know is thinking about buying or selling a home in the coming months, please contact me. And remember, I always appreciate your referrals.
Dave Straub 773.255.3180
Sunday, March 14, 2010
A New Window of Opportunity
The lure of contemporary floor plans, custom finishes and upscale amenities drew Chicagoans to new construction in record numbers in the early 2000s. Now, as the market stabilizes, new construction has become attractive once again. In fact, today might be the best opportunity to invest in a new home for years to come. Here's why:
Below Replacement Cost - While land has gotten significantly less expensive, labor and material costs have not come down proportionately. That means many developers simply cannot build the homes they are selling today for the prices at which they're being offered.
See Before You Buy - Traditionally, one of the biggest obstacles to purchasing new construction was buying from a floor plan. However, almost all new homes on the market today are completed. That means buyers can see room sizes, touch finishes and experience views before making a decision – a luxury that wasn't available at the height of the market.
Locked and Low - Another obstacle that has been removed is interest-rate uncertainty. Buying new construction used to mean rolling the dice on where rates would be when your home was finished six to 18 months after you signed a contract. With today's move-in-ready inventory, buyers are virtually assured the lowest rates in history.
Tax Credit - The Federal Homebuyer Tax Credit (up to $8,000 for first-time buyers and up to $6,500 for move-up buyers) is available for new-home purchases as well as re-sales. With the April 30 contract deadline approaching, builder inventory gives new-construction buyers some added flexibility.
Cycling Out - Believe it or not, if you like the idea of owning a brand new condominium in downtown Chicago, the window of opportunity is closing. While 3,400 new condos were delivered downtown in 2009, only 1,200 will be finished this year. In 2011, less than 300 new condos are slated for delivery, and no new condominium deliveries are scheduled for 2012 or beyond.*
Buying or selling, new or existing, I'm here to help with all of your real estate needs. Contact me anytime, and please remember that I always appreciate your referrals.
*Source: Appraisal Research Counselors Downtown Benchmark Report
Below Replacement Cost - While land has gotten significantly less expensive, labor and material costs have not come down proportionately. That means many developers simply cannot build the homes they are selling today for the prices at which they're being offered.
See Before You Buy - Traditionally, one of the biggest obstacles to purchasing new construction was buying from a floor plan. However, almost all new homes on the market today are completed. That means buyers can see room sizes, touch finishes and experience views before making a decision – a luxury that wasn't available at the height of the market.
Locked and Low - Another obstacle that has been removed is interest-rate uncertainty. Buying new construction used to mean rolling the dice on where rates would be when your home was finished six to 18 months after you signed a contract. With today's move-in-ready inventory, buyers are virtually assured the lowest rates in history.
Tax Credit - The Federal Homebuyer Tax Credit (up to $8,000 for first-time buyers and up to $6,500 for move-up buyers) is available for new-home purchases as well as re-sales. With the April 30 contract deadline approaching, builder inventory gives new-construction buyers some added flexibility.
Cycling Out - Believe it or not, if you like the idea of owning a brand new condominium in downtown Chicago, the window of opportunity is closing. While 3,400 new condos were delivered downtown in 2009, only 1,200 will be finished this year. In 2011, less than 300 new condos are slated for delivery, and no new condominium deliveries are scheduled for 2012 or beyond.*
Buying or selling, new or existing, I'm here to help with all of your real estate needs. Contact me anytime, and please remember that I always appreciate your referrals.
*Source: Appraisal Research Counselors Downtown Benchmark Report
Friday, February 12, 2010
Degrees of Control
The past 18 months have taught us many things, not the least of which is that we don't have control over a number of variables that affect the real estate market. However, we do have control over the actions we take to prepare for and react to these variables. During the next 60 to 90 days, some significant housing-related changes are imminent. We can't control those changes, but to a certain degree we can control how they affect us.
Can't Control: Expiration of Federal Housing Tax Credit
Can Control: Purchase Date / Closing Date
While we can't control how the expiration of the Federal Housing Tax Credit will affect the real estate market, it is an absolute certainty that qualified first-time buyers will receive up to $8,000 and qualified repeat buyers will receive up to $6,500 if they enter into a purchase contract by April 30 and close by June 30. With less than 90 days until the expiration of the Federal Housing Tax Credit, buyers need to be in the market now.
Can't Control: Mortgage Interest Rates
Can Control: Locking in Today's Rates
No one knows what will happen to mortgage interest rates when the Fed ends its $1.25 trillion purchase of mortgage backed securities in a few weeks. But one thing is for sure. Home buyers who lock in their interest rate today will benefit from some of the best mortgage financing conditions in history.
Can't Control: Selling Price
Can Control: Asking Price
If you're a seller, the price you paid for your home or the amount you owe on your mortgage has no bearing on your home's ultimate selling price. What does determine that price is the market. And today sellers must show consideration for the market with correct pricing right out of the gate. The chart below shows just how important Original List Price (OLP) is to selling your home for the highest possible price in the shortest amount of time.
2009 Sales Data
Homes with no price changes Homes with at least one price change
Average selling price as a percentage of OLP Average days on market Average selling price as a percentage of OLP Average Days on market
96%
116
82%
240
Source: Agent Metrics, MRED LLC data, 2009, Selling Price to Original Listing Price, City of Chicago.
One more thing you can control is your choice of real estate agent. Thank you for allowing me to serve you, and please contact me if you or anyone you know needs help navigating today’s real estate market.
Can't Control: Expiration of Federal Housing Tax Credit
Can Control: Purchase Date / Closing Date
While we can't control how the expiration of the Federal Housing Tax Credit will affect the real estate market, it is an absolute certainty that qualified first-time buyers will receive up to $8,000 and qualified repeat buyers will receive up to $6,500 if they enter into a purchase contract by April 30 and close by June 30. With less than 90 days until the expiration of the Federal Housing Tax Credit, buyers need to be in the market now.
Can't Control: Mortgage Interest Rates
Can Control: Locking in Today's Rates
No one knows what will happen to mortgage interest rates when the Fed ends its $1.25 trillion purchase of mortgage backed securities in a few weeks. But one thing is for sure. Home buyers who lock in their interest rate today will benefit from some of the best mortgage financing conditions in history.
Can't Control: Selling Price
Can Control: Asking Price
If you're a seller, the price you paid for your home or the amount you owe on your mortgage has no bearing on your home's ultimate selling price. What does determine that price is the market. And today sellers must show consideration for the market with correct pricing right out of the gate. The chart below shows just how important Original List Price (OLP) is to selling your home for the highest possible price in the shortest amount of time.
2009 Sales Data
Homes with no price changes Homes with at least one price change
Average selling price as a percentage of OLP Average days on market Average selling price as a percentage of OLP Average Days on market
96%
116
82%
240
Source: Agent Metrics, MRED LLC data, 2009, Selling Price to Original Listing Price, City of Chicago.
One more thing you can control is your choice of real estate agent. Thank you for allowing me to serve you, and please contact me if you or anyone you know needs help navigating today’s real estate market.
Wednesday, January 20, 2010
@properties Is #1
@properties Is #1
2009 was a challenging year for businesses across the globe. Some companies took it sitting down. Not @properties. We invested in new marketing and technology, opened new offices, and expanded programs to serve you better. The result: Our independent locally-owned company is stronger today than ever before. In fact, @properties far and away leads the Chicago market in more key categories than any other real estate company. And that means more resources, better service and ultimately better results for you.
@properties is clearly #1.
2009 Market Performance #1 in Market Share (City): 12.4%
#3 in Market Share (Northern Illinois Region): 4.4%
#1 Increase in Market Share (City): 28.0%
#1 Increase in Market Share (Northern Illinois Region): 18.8%
#2 Increase in Market Share (North Shore): 68.6%
#1 New Construction Market Share (City): 16.5%
#1 Buyer's Representative (City): 12.0%
#1 Seller's Representative (City): 12.9%
#1 Average Market Time (Northern Illinois Region): 147 Days
#1 Selling Price to Original Listing Price (Northern Illinois Region): 93.8%
For more information on @properties' services or your local market area, please contact me. I'm here to help.
Source: MRED, LLC, 1/1/09-12/31/09. Based on top 10 companies per category. Market share figures are based on sales volume.
2009 was a challenging year for businesses across the globe. Some companies took it sitting down. Not @properties. We invested in new marketing and technology, opened new offices, and expanded programs to serve you better. The result: Our independent locally-owned company is stronger today than ever before. In fact, @properties far and away leads the Chicago market in more key categories than any other real estate company. And that means more resources, better service and ultimately better results for you.
@properties is clearly #1.
2009 Market Performance #1 in Market Share (City): 12.4%
#3 in Market Share (Northern Illinois Region): 4.4%
#1 Increase in Market Share (City): 28.0%
#1 Increase in Market Share (Northern Illinois Region): 18.8%
#2 Increase in Market Share (North Shore): 68.6%
#1 New Construction Market Share (City): 16.5%
#1 Buyer's Representative (City): 12.0%
#1 Seller's Representative (City): 12.9%
#1 Average Market Time (Northern Illinois Region): 147 Days
#1 Selling Price to Original Listing Price (Northern Illinois Region): 93.8%
For more information on @properties' services or your local market area, please contact me. I'm here to help.
Source: MRED, LLC, 1/1/09-12/31/09. Based on top 10 companies per category. Market share figures are based on sales volume.
Friday, January 8, 2010
Local commercial delinquencies dip in likely ‘anomaly’
By Alby Gallun, Dec. 14, 2009
(Crain’s) — Local banks reported a lower percentage of troubled commercial real estate loans in the third quarter, though delinquencies are likely to resume their climb over the next year because of depressed property values and the languishing economy.
The delinquency rate for commercial mortgages at Chicago-area banks fell to 5.9% in the quarter, down from 6.2% in the second quarter, according to Foresight Analytics LLC, an Oakland, Calif.-based research firm. That’s still up sharply from a rate of 3.5% a year earlier.
The third-quarter drop is probably a “statistical anomaly,” not the beginning of a turnaround, says Foresight Partner Matthew Anderson.
With occupancies and rents at many properties continuing to decline, more borrowers will struggle to keep up with their monthly loan payments, especially those who piled on debt when lending was loose.
Other investors will default as loans come due and they struggle to find replacement financing.
Though distress continues to build, regulators are showing flexibility in how banks deal with problem loans, one reason Mr. Anderson expects it could take a lot longer to clean up the financial mess than many observers previously believed.
And many vulture investors could find it harder than expected to scoop up distressed properties on the cheap.
“You’ve got almost all the ingredients for a massive wave of foreclosures or loan sales,” he says. “The part that’s missing is the regulatory pressure.”
Chicago is faring worse than the nation as whole, probably because the job market, a key driver of demand for real estate, is especially bad here, Mr. Anderson says.
Chicago’s third-quarter delinquency rate ranked 14th highest among the 100 biggest U.S. metropolitan areas, and it exceeded the national rate of 4.6%, according to Foresight.
Though he doesn’t offer a forecast for Chicago, Mr. Anderson expects the U.S. delinquency rate to peak at 7.5% to 8.0% near the end of 2010. That would be the highest since 1991, during the last commercial property crash, when the rate hit about 9.5%.
The Foresight data, which is based on bank regulatory filings, does not cover loans packaged and sold off as commercial mortgage-backed securities (CMBS), a segment of the market blamed for some of the biggest lending excess during the boom.
Foresight calculates the delinquency rate by dividing the dollar value of delinquent loans by the value of all outstanding mortgages on operating commercial properties. A loan is classified as delinquent if it’s at least 30 days past due.
Foresight also tracks the delinquency rate for construction and land loans, which hit a new high locally of 24% in the third quarter, up from 21.3% in the second quarter and 13.7% in the year-ago period.
One big source of distress: residential builders who have finished projects but are struggling to sell them out. Others are sitting on undeveloped property that has plunged in value, and they can’t develop it or refinance.
Though banks are required to write off bad loans, federal regulators issued new guidelines in October that could take some of the pressure off. The new rules encourage “loan modifications and restructurings, which will curb defaults associated with the wave of upcoming maturities,” Real Capital Analytics, a New York-research firm, writes in a recent report.
That’s good news for some banks on the edge, but “it could have the unintended consequence of stretching out the whole adjustment process,” Mr. Anderson says. Originally, he expected banks to clear out their bad loans within two years. Now he expects it to take four to five.
In the Chicago area, 398 commercial properties and developments are in various stages of distress, accounting for $5.6 billion in loans, according to Real Capital. The retail sector represents the biggest source of trouble, with $1.3 billion in troubled loans, followed by hotels, at $1.0 billion, and apartments, at $848 million.
(Crain’s) — Local banks reported a lower percentage of troubled commercial real estate loans in the third quarter, though delinquencies are likely to resume their climb over the next year because of depressed property values and the languishing economy.
The delinquency rate for commercial mortgages at Chicago-area banks fell to 5.9% in the quarter, down from 6.2% in the second quarter, according to Foresight Analytics LLC, an Oakland, Calif.-based research firm. That’s still up sharply from a rate of 3.5% a year earlier.
The third-quarter drop is probably a “statistical anomaly,” not the beginning of a turnaround, says Foresight Partner Matthew Anderson.
With occupancies and rents at many properties continuing to decline, more borrowers will struggle to keep up with their monthly loan payments, especially those who piled on debt when lending was loose.
Other investors will default as loans come due and they struggle to find replacement financing.
Though distress continues to build, regulators are showing flexibility in how banks deal with problem loans, one reason Mr. Anderson expects it could take a lot longer to clean up the financial mess than many observers previously believed.
And many vulture investors could find it harder than expected to scoop up distressed properties on the cheap.
“You’ve got almost all the ingredients for a massive wave of foreclosures or loan sales,” he says. “The part that’s missing is the regulatory pressure.”
Chicago is faring worse than the nation as whole, probably because the job market, a key driver of demand for real estate, is especially bad here, Mr. Anderson says.
Chicago’s third-quarter delinquency rate ranked 14th highest among the 100 biggest U.S. metropolitan areas, and it exceeded the national rate of 4.6%, according to Foresight.
Though he doesn’t offer a forecast for Chicago, Mr. Anderson expects the U.S. delinquency rate to peak at 7.5% to 8.0% near the end of 2010. That would be the highest since 1991, during the last commercial property crash, when the rate hit about 9.5%.
The Foresight data, which is based on bank regulatory filings, does not cover loans packaged and sold off as commercial mortgage-backed securities (CMBS), a segment of the market blamed for some of the biggest lending excess during the boom.
Foresight calculates the delinquency rate by dividing the dollar value of delinquent loans by the value of all outstanding mortgages on operating commercial properties. A loan is classified as delinquent if it’s at least 30 days past due.
Foresight also tracks the delinquency rate for construction and land loans, which hit a new high locally of 24% in the third quarter, up from 21.3% in the second quarter and 13.7% in the year-ago period.
One big source of distress: residential builders who have finished projects but are struggling to sell them out. Others are sitting on undeveloped property that has plunged in value, and they can’t develop it or refinance.
Though banks are required to write off bad loans, federal regulators issued new guidelines in October that could take some of the pressure off. The new rules encourage “loan modifications and restructurings, which will curb defaults associated with the wave of upcoming maturities,” Real Capital Analytics, a New York-research firm, writes in a recent report.
That’s good news for some banks on the edge, but “it could have the unintended consequence of stretching out the whole adjustment process,” Mr. Anderson says. Originally, he expected banks to clear out their bad loans within two years. Now he expects it to take four to five.
In the Chicago area, 398 commercial properties and developments are in various stages of distress, accounting for $5.6 billion in loans, according to Real Capital. The retail sector represents the biggest source of trouble, with $1.3 billion in troubled loans, followed by hotels, at $1.0 billion, and apartments, at $848 million.
Tuesday, January 5, 2010
Downtown apartments slip as glut looms
(Crain’s) — After taking two steps forward, downtown apartment landlords took one step back in the third quarter.
Demand for apartments remains surprisingly strong, but competition for tenants is heating up amid a swelling supply of new units. That’s one reason rents and occupancies at high-end downtown buildings slipped in the third quarter after rising in the first two, resuming a downward trend that began more than two years ago, according to a report by Appraisal Research Counselors.
“It’s really not a signal that it’s a weak market,” says Ron DeVries, vice president at the Chicago-based real estate consulting firm. “Demand is strong. We’ve just got a supply bubble right now.”
The average net effective rent at Class A downtown apartment buildings fell to $2.10 a square foot in the third quarter, down 3.2% from the second quarter and 7.1% from the year-earlier period, according to Appraisal Research.
Effective rents, which include concessions such as free rent, have fallen 10.6% from their peak of $2.35 in third-quarter 2007.
The average Class A occupancy also declined, to 91.9%, down from 93.4% in the second quarter and 92.8% in the year-ago period.
Demand for apartments typically falls in a recession as more renters try to save money by doubling up or moving in with their parents. But that hasn’t happened in downtown Chicago, where more people are renting now than were before the economy went south.
Renters occupied 17,617 downtown apartments surveyed by Appraisal Research at the end up the third quarter, up 16.7% from 15,093 two years earlier. Appraisal Research tracks about 80% of the apartments in downtown Chicago.
Normally, apartment landlords lose a certain percentage of tenants who move out to buy a condominium or single-family home. But the turnover rate has slowed dramatically, possibly because would-be buyers are hesitant to commit to a mortgage when the economy is so shaky and condo vales could fall further, Mr. DeVries says. Other renters simply may not be able to qualify for a mortgage.
“The path to home ownership is a lot tougher right now,” Mr. DeVries says.
While that’s good for landlords, the current building boom isn’t. Developers have added 3,270 units to the downtown apartment market in 2008 and 2009 and will complete another 2,236 next year, boosting the total downtown inventory by 25%, according to Appraisal Research.
“I could still see demand remaining reasonable, but I could see pressure on rents because of the supply,” says Michael Newman, president and CEO of Golub & Co., the Chicago-based developer of Streeter Place, a new 480-unit apartment tower at 355 E. Ohio St.
Golub is offering tenants two months of free rent on a 12- to 14-month lease in the building, which is about 55% leased, he says. Though the property is not meeting financial projections set a few years ago, when the market was much stronger, “we’re kind of happy where we’re at,” considering the state of the economy, Mr. Newman says.
The so-called shadow rental market is another concern. Amid a glut of condominiums, more downtown condo owners are renting out their units rather than trying to sell them. And they’re competing with traditional landlords for tenants.
There were 1,747 downtown condos listed for rent on the Multiple Listing Service at the end of the third quarter, up 45% from the year earlier, according to Appraisal Research.
Whether the market can absorb all the extra supply will depend in part on the job market, the key driver of demand for apartments, says Anthony Rossi, president of RMK Management Corp., a Chicago-based property manager. He’s also a partner in the Parc Huron, a 221-unit apartment building under construction in River North.
“The big thing that we’ve got to hope for is that employment stabilizes and comes back,” Mr. Rossi says. “That will make everybody a little more comfortable.”
By Alby Gallun, Nov. 23, 2009
Demand for apartments remains surprisingly strong, but competition for tenants is heating up amid a swelling supply of new units. That’s one reason rents and occupancies at high-end downtown buildings slipped in the third quarter after rising in the first two, resuming a downward trend that began more than two years ago, according to a report by Appraisal Research Counselors.
“It’s really not a signal that it’s a weak market,” says Ron DeVries, vice president at the Chicago-based real estate consulting firm. “Demand is strong. We’ve just got a supply bubble right now.”
The average net effective rent at Class A downtown apartment buildings fell to $2.10 a square foot in the third quarter, down 3.2% from the second quarter and 7.1% from the year-earlier period, according to Appraisal Research.
Effective rents, which include concessions such as free rent, have fallen 10.6% from their peak of $2.35 in third-quarter 2007.
The average Class A occupancy also declined, to 91.9%, down from 93.4% in the second quarter and 92.8% in the year-ago period.
Demand for apartments typically falls in a recession as more renters try to save money by doubling up or moving in with their parents. But that hasn’t happened in downtown Chicago, where more people are renting now than were before the economy went south.
Renters occupied 17,617 downtown apartments surveyed by Appraisal Research at the end up the third quarter, up 16.7% from 15,093 two years earlier. Appraisal Research tracks about 80% of the apartments in downtown Chicago.
Normally, apartment landlords lose a certain percentage of tenants who move out to buy a condominium or single-family home. But the turnover rate has slowed dramatically, possibly because would-be buyers are hesitant to commit to a mortgage when the economy is so shaky and condo vales could fall further, Mr. DeVries says. Other renters simply may not be able to qualify for a mortgage.
“The path to home ownership is a lot tougher right now,” Mr. DeVries says.
While that’s good for landlords, the current building boom isn’t. Developers have added 3,270 units to the downtown apartment market in 2008 and 2009 and will complete another 2,236 next year, boosting the total downtown inventory by 25%, according to Appraisal Research.
“I could still see demand remaining reasonable, but I could see pressure on rents because of the supply,” says Michael Newman, president and CEO of Golub & Co., the Chicago-based developer of Streeter Place, a new 480-unit apartment tower at 355 E. Ohio St.
Golub is offering tenants two months of free rent on a 12- to 14-month lease in the building, which is about 55% leased, he says. Though the property is not meeting financial projections set a few years ago, when the market was much stronger, “we’re kind of happy where we’re at,” considering the state of the economy, Mr. Newman says.
The so-called shadow rental market is another concern. Amid a glut of condominiums, more downtown condo owners are renting out their units rather than trying to sell them. And they’re competing with traditional landlords for tenants.
There were 1,747 downtown condos listed for rent on the Multiple Listing Service at the end of the third quarter, up 45% from the year earlier, according to Appraisal Research.
Whether the market can absorb all the extra supply will depend in part on the job market, the key driver of demand for apartments, says Anthony Rossi, president of RMK Management Corp., a Chicago-based property manager. He’s also a partner in the Parc Huron, a 221-unit apartment building under construction in River North.
“The big thing that we’ve got to hope for is that employment stabilizes and comes back,” Mr. Rossi says. “That will make everybody a little more comfortable.”
By Alby Gallun, Nov. 23, 2009
Friday, December 18, 2009
Happy Holidays from @properties!
The holidays are a time of celebration but also a time of reflection. And as a REALTOR®, naturally I tend to reflect on the significance of home. These days we seem to spend more time than ever selecting our homes, improving our homes and focusing on our homes. After all, our home is certainly one of the most important places - if not the most important place - in our lives.
But the holidays are also a great reminder of what truly makes a home: the friends, family, love, laughter and special occasions that fill it throughout the year. So I'd like to extend my warmest wishes for a happy and healthy holiday, a prosperous New Year and, most of all, a joyous home.
Dave Straub
@properties
773.255.3180
But the holidays are also a great reminder of what truly makes a home: the friends, family, love, laughter and special occasions that fill it throughout the year. So I'd like to extend my warmest wishes for a happy and healthy holiday, a prosperous New Year and, most of all, a joyous home.
Dave Straub
@properties
773.255.3180
Friday, November 27, 2009
Homebuyer Tax Credit
It's Official.
The First Time Homebuyer Tax Credit has been extended through April 30, 2010, and that's great news for you whether you are buying or selling. On the heels of an improving market, there really is no better time to take advantage of an incentive like this.
The new Tax Credit is similar to its predecessor only the government has expanded the program and sweetened the pot. Initially, only First Time Buyers were eligible for the $8,000 credit, contingent on the purchase of their first home. That opportunity is still available, but now there is a new incentive: $6,500 for existing homeowners who purchase a new home provided they have lived in their current residence for at least five years. Income limits also have been increased, so more borrowers are eligible. Homebuyers must close by June 30, 2010.
Need help establishing your qualifications? As your REALTOR®, I can help you determine how to successfully take advantage of these incentives. Whether you're looking to buy your first home, sell or move up, I'm here to offer you candid advice on market conditions, and of course the updated Homebuyer Tax Credit.
The First Time Homebuyer Tax Credit has been extended through April 30, 2010, and that's great news for you whether you are buying or selling. On the heels of an improving market, there really is no better time to take advantage of an incentive like this.
The new Tax Credit is similar to its predecessor only the government has expanded the program and sweetened the pot. Initially, only First Time Buyers were eligible for the $8,000 credit, contingent on the purchase of their first home. That opportunity is still available, but now there is a new incentive: $6,500 for existing homeowners who purchase a new home provided they have lived in their current residence for at least five years. Income limits also have been increased, so more borrowers are eligible. Homebuyers must close by June 30, 2010.
Need help establishing your qualifications? As your REALTOR®, I can help you determine how to successfully take advantage of these incentives. Whether you're looking to buy your first home, sell or move up, I'm here to offer you candid advice on market conditions, and of course the updated Homebuyer Tax Credit.
Saturday, November 14, 2009
@properties Launches New Chicago Real Estate Website
RISMEDIA, November 5, 2009—@properties, one of Chicago’s leading real estate brokerage companies launched a new company website (www.atproperties.com). According to the company, the site gives consumers all of the Chicago-area real estate listings from the MLS, neighborhood information and hyper-local market data; while also providing the company and its agents with a set of digital marketing tools that will give them a competitive advantage.
Highlights of the new @properties site include: Chicago neighborhood guides featuring business reviews, photos, detailed school reports and hyper-local news content; a customizable property search tool that allows users to draw their own search boundaries directly on an area map; an open house touring tool that allows users to choose the homes they wish to tour and get printable point-to-point directions and email listing alerts for both new properties and property status changes, so users can monitor specific properties and market segments.
“This new website is the most advanced, most comprehensive and most user-friendly online tool for Chicago real estate. It was designed around Chicago homebuyers and sellers to instinctively deliver the content they want in a usable fashion,” said Thaddeus Wong, co-founder of @properties. “At the same time, the site will also drive business and serve as a valuable marketing resource for our agents.”
For more information, visit www.atproperties.com.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.
Read more: http://rismedia.com/2009-11-04/properties-launches-new-chicago-real-estate-website/#ixzz0WrNuurdT
Dave Straub's @properties web site: http://www.atproperties.com/agents/DaveStraub
Highlights of the new @properties site include: Chicago neighborhood guides featuring business reviews, photos, detailed school reports and hyper-local news content; a customizable property search tool that allows users to draw their own search boundaries directly on an area map; an open house touring tool that allows users to choose the homes they wish to tour and get printable point-to-point directions and email listing alerts for both new properties and property status changes, so users can monitor specific properties and market segments.
“This new website is the most advanced, most comprehensive and most user-friendly online tool for Chicago real estate. It was designed around Chicago homebuyers and sellers to instinctively deliver the content they want in a usable fashion,” said Thaddeus Wong, co-founder of @properties. “At the same time, the site will also drive business and serve as a valuable marketing resource for our agents.”
For more information, visit www.atproperties.com.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.
Read more: http://rismedia.com/2009-11-04/properties-launches-new-chicago-real-estate-website/#ixzz0WrNuurdT
Dave Straub's @properties web site: http://www.atproperties.com/agents/DaveStraub
Thursday, November 12, 2009
More positive news on new-home sales
(Crain’s) — After enduring a three-year freefall, local homebuilders have nowhere to go but up — or at least sideways.
Chicago-area new-home sales rose for the third quarter in a row on a seasonally adjusted annualized basis, according to housing consultant Tracy Cross & Associates Inc., another sign that the worst is over for homebuilders.
Yet where the market goes from here will depend on the broader economy and job market, which isn’t likely to surge back anytime soon.
“You can’t get blood out of a turnip, and that’s where the problem is,” says Tracy Cross, president of the Schaumburg-based firm.
On a seasonally adjusted annualized basis, local residential developers sold 4,666 homes in the third quarter, up 15% from a rate of 4,054 in the second quarter, according to a recent report published by the firm. The market bottomed out at 2,786 sales in fourth-quarter 2008.
The bad news is that 2009 will likely go down as the worst year for homebuilders since World War II. Even with the recent pickup, the beginning of the year was so bad that Mr. Cross expects developers to sell just 3,700 homes this year, down 42% from 6,374 in 2008 and 89% from the peak of 33,287 in 2005.
Sales in the city bounced back in the third quarter, as developers lured buyers by slashing prices by as much as 35%. Chicago builders sold 1,967 units at a seasonally adjusted annualized rate, nearly triple the 674-unit pace in the second quarter.
Chicago condo developers are still sitting on several thousand unsold units, ensuring that the discounting will continue. The developer of the 168-unit Park Monroe recently reduced prices on several condos in the project at 65 E. Monroe St.; one-bedroom, one-bathroom condos there now are listed at $299,500 down 25% from $399,900 previously, according to the development’s Web site.
The quarter was tougher on the suburban market, where seasonally adjusted annualized sales fell 20% from the second quarter, to 2,699 units. One reason: The $8,000 federal tax credit for first-time homebuyers boosted suburban demand in the first half of the year, but sales petered out in the third quarter because the credit is set to expire Nov. 30, Mr. Cross says.
Because of the time it takes to build a new home, suburban buyers who signed contracts in the third quarter wouldn’t have been able to close on the purchases until after the deadline, removing the sense of urgency to buy, he says. Tracy Cross records a sale when a purchase contract is signed, not at closing.
The tax credit has been less of a factor in the city because new homes there, with an average price of $587,158 in the third quarter, are beyond the means of many first-time buyers, Mr. Cross says.
Congress is considering extending and expanding the homebuyer credit, possibly until April 30, but that won’t be enough to ensure a recovery in the U.S. housing market.
Even if the credit is extended, “home demand and prices will deteriorate again once the credit eventually expires — especially if job creation does not materialize in light of further anticipated increases in housing inventory as mortgage delinquencies and foreclosures rise,” CreditSights Inc., a New York-based research firm, writes in a recent report.
The other key factor is the availability of mortgage financing. Condo developers continue to gripe that lenders have tightened their underwriting standards so much that creditworthy borrowers can no longer get a loan to finance a new condo purchase. And mortgage rates are rising again, fueling concerns that higher borrowing costs could stall a market recovery.
Though he’s written off 2009, Mr. Cross expects new home sales to rise about 20% in 2010, rising ultimately to about 22,000 units annually.
“We don’t see Chicago ever coming back to what we saw in ’04 and ’05,” he says.
By Alby Gallun, Nov. 02, 2009
Chicago-area new-home sales rose for the third quarter in a row on a seasonally adjusted annualized basis, according to housing consultant Tracy Cross & Associates Inc., another sign that the worst is over for homebuilders.
Yet where the market goes from here will depend on the broader economy and job market, which isn’t likely to surge back anytime soon.
“You can’t get blood out of a turnip, and that’s where the problem is,” says Tracy Cross, president of the Schaumburg-based firm.
On a seasonally adjusted annualized basis, local residential developers sold 4,666 homes in the third quarter, up 15% from a rate of 4,054 in the second quarter, according to a recent report published by the firm. The market bottomed out at 2,786 sales in fourth-quarter 2008.
The bad news is that 2009 will likely go down as the worst year for homebuilders since World War II. Even with the recent pickup, the beginning of the year was so bad that Mr. Cross expects developers to sell just 3,700 homes this year, down 42% from 6,374 in 2008 and 89% from the peak of 33,287 in 2005.
Sales in the city bounced back in the third quarter, as developers lured buyers by slashing prices by as much as 35%. Chicago builders sold 1,967 units at a seasonally adjusted annualized rate, nearly triple the 674-unit pace in the second quarter.
Chicago condo developers are still sitting on several thousand unsold units, ensuring that the discounting will continue. The developer of the 168-unit Park Monroe recently reduced prices on several condos in the project at 65 E. Monroe St.; one-bedroom, one-bathroom condos there now are listed at $299,500 down 25% from $399,900 previously, according to the development’s Web site.
The quarter was tougher on the suburban market, where seasonally adjusted annualized sales fell 20% from the second quarter, to 2,699 units. One reason: The $8,000 federal tax credit for first-time homebuyers boosted suburban demand in the first half of the year, but sales petered out in the third quarter because the credit is set to expire Nov. 30, Mr. Cross says.
Because of the time it takes to build a new home, suburban buyers who signed contracts in the third quarter wouldn’t have been able to close on the purchases until after the deadline, removing the sense of urgency to buy, he says. Tracy Cross records a sale when a purchase contract is signed, not at closing.
The tax credit has been less of a factor in the city because new homes there, with an average price of $587,158 in the third quarter, are beyond the means of many first-time buyers, Mr. Cross says.
Congress is considering extending and expanding the homebuyer credit, possibly until April 30, but that won’t be enough to ensure a recovery in the U.S. housing market.
Even if the credit is extended, “home demand and prices will deteriorate again once the credit eventually expires — especially if job creation does not materialize in light of further anticipated increases in housing inventory as mortgage delinquencies and foreclosures rise,” CreditSights Inc., a New York-based research firm, writes in a recent report.
The other key factor is the availability of mortgage financing. Condo developers continue to gripe that lenders have tightened their underwriting standards so much that creditworthy borrowers can no longer get a loan to finance a new condo purchase. And mortgage rates are rising again, fueling concerns that higher borrowing costs could stall a market recovery.
Though he’s written off 2009, Mr. Cross expects new home sales to rise about 20% in 2010, rising ultimately to about 22,000 units annually.
“We don’t see Chicago ever coming back to what we saw in ’04 and ’05,” he says.
By Alby Gallun, Nov. 02, 2009
Friday, October 30, 2009
Chicago-area existing-home sales rise for 3rd straight month
Will the local housing market’s improvement hold?
Year-over-year sales of existing homes and condominiums rose in September for the third consecutive month, sparking optimism that, at least from a volume standpoint, the market is on the mend.
Pricing, however, is not. Distressed sales and lower-priced homes that appeal to first-time buyers caused September’s median sales prices to fall in all nine area counties. In fact, the area’s median sales price of $199,000 was down 10.8 percent from last year and 22.7 percent lower than in September 2007, according to the Illinois Association of Realtors.
Sales of existing homes and condominiums in the Chicago area rose 5.9 percent in September, to 6,862 homes, the real estate trade group reported Friday.
Kendall County highlighted the market’s dichotomy, as sales rose 26.2 percent but the median price plunged to $177,000, down almost 22 percent from September 2008.
Chicago recorded its first monthly, year-over-year sales gain since May 2006, as sales rose 5.8 percent, to 1,918 properties. But the median price fell 16.2 percent, to $225,000.
First-time buyers are driving the marketplace, accounting for 45 percent of transactions over the past year nationally, so the industry continued Friday to trumpet the need for an expansion of the first-time buyer’s tax credit. The $8,000 credit expires Nov. 30.
“We are turning a corner, but I don’t believe we’re stabilized yet,” said Pat Callan of Realty Executives Premiere in Wheaton. “Prices are still going down, and I don’t know that the year-over-year increase in sales is sustainable without the tax credit.”
Beyond the tax credit, the variables that will define the market going forward remain the same: the still-difficult credit environment, unemployment and interest rates.
“It’s clear that we’ve been at a plateau for the better part of 2009, but you really have to ask yourself where the risk is tilted, and I would be concerned that the risk is still tilted to the downside,” said ShoreBank chief economist David Oser.
Mary Ellen Podmolik
Chicago Tribune
October 24, 2009
Year-over-year sales of existing homes and condominiums rose in September for the third consecutive month, sparking optimism that, at least from a volume standpoint, the market is on the mend.
Pricing, however, is not. Distressed sales and lower-priced homes that appeal to first-time buyers caused September’s median sales prices to fall in all nine area counties. In fact, the area’s median sales price of $199,000 was down 10.8 percent from last year and 22.7 percent lower than in September 2007, according to the Illinois Association of Realtors.
Sales of existing homes and condominiums in the Chicago area rose 5.9 percent in September, to 6,862 homes, the real estate trade group reported Friday.
Kendall County highlighted the market’s dichotomy, as sales rose 26.2 percent but the median price plunged to $177,000, down almost 22 percent from September 2008.
Chicago recorded its first monthly, year-over-year sales gain since May 2006, as sales rose 5.8 percent, to 1,918 properties. But the median price fell 16.2 percent, to $225,000.
First-time buyers are driving the marketplace, accounting for 45 percent of transactions over the past year nationally, so the industry continued Friday to trumpet the need for an expansion of the first-time buyer’s tax credit. The $8,000 credit expires Nov. 30.
“We are turning a corner, but I don’t believe we’re stabilized yet,” said Pat Callan of Realty Executives Premiere in Wheaton. “Prices are still going down, and I don’t know that the year-over-year increase in sales is sustainable without the tax credit.”
Beyond the tax credit, the variables that will define the market going forward remain the same: the still-difficult credit environment, unemployment and interest rates.
“It’s clear that we’ve been at a plateau for the better part of 2009, but you really have to ask yourself where the risk is tilted, and I would be concerned that the risk is still tilted to the downside,” said ShoreBank chief economist David Oser.
Mary Ellen Podmolik
Chicago Tribune
October 24, 2009
Lincoln Square and Ravenswood
Lincoln Square: Centered around a bustling shopping and dining district at the intersection of Lawrence, Western and Lincoln Avenues on Chicago's North Side, Lincoln Square became one of Chicago's first commuter suburbs when the Ravenswood elevated train line was completed in 1907. Today, this Chicago neighborhood still gives residents convenient access to public transportation including the CTA Brown Line and the Metra Union Pacific North Line. Likewise, the community effortlessly blends trendy hot spots with its century-old German heritage.
Lincoln Square's quiet residential streets are lined with Chicago bungalows, greystones and brick two- and three-flats, many of which have been recently rehabbed. Lovely Victorian and Prairie School homes can be found along the North Branch of the Chicago River. While single-family homes in Lincoln Square can run upwards of $1 million, vintage apartment buildings restored as condominiums are often a more affordable option. New-construction options are also available in the neighborhood, including single-family homes, town homes, three-flat condominiums and mid rise buildings.
Lincoln Square's German heritage lives on in a number of German restaurants including the Chicago Brauhaus and Lutz Continental; however, Lincoln Avenue also serves up an eclectic mix of sophisticated eateries, corner cafes and favorite neighborhood hangouts such as Jury's and Pizza D.O.C. A lively cultural scene is fueled by the Old Town School of Folk Music as well as annual festivals like the Chicago Folk & Roots music festival and the German-American Fest, which draw crowds from throughout Chicago and the Midwest.
Neighborhoods within Lincoln Square:
Bowmanville, Budlong Woods, Lincoln Square, Ravenswood, Ravenswood Gardens
Zip codes within Lincoln Square:
60625, 60640
For More Information on Chicago Neighborhoods Please Visit the All New @properties Web Site: www.atproperties.com or call Dave Straub 773.255.3180
Lincoln Square's quiet residential streets are lined with Chicago bungalows, greystones and brick two- and three-flats, many of which have been recently rehabbed. Lovely Victorian and Prairie School homes can be found along the North Branch of the Chicago River. While single-family homes in Lincoln Square can run upwards of $1 million, vintage apartment buildings restored as condominiums are often a more affordable option. New-construction options are also available in the neighborhood, including single-family homes, town homes, three-flat condominiums and mid rise buildings.
Lincoln Square's German heritage lives on in a number of German restaurants including the Chicago Brauhaus and Lutz Continental; however, Lincoln Avenue also serves up an eclectic mix of sophisticated eateries, corner cafes and favorite neighborhood hangouts such as Jury's and Pizza D.O.C. A lively cultural scene is fueled by the Old Town School of Folk Music as well as annual festivals like the Chicago Folk & Roots music festival and the German-American Fest, which draw crowds from throughout Chicago and the Midwest.
Neighborhoods within Lincoln Square:
Bowmanville, Budlong Woods, Lincoln Square, Ravenswood, Ravenswood Gardens
Zip codes within Lincoln Square:
60625, 60640
For More Information on Chicago Neighborhoods Please Visit the All New @properties Web Site: www.atproperties.com or call Dave Straub 773.255.3180
About @properties
We can tell you that we became the #1 real estate brokerage in Chicago in only eight years, because we did. We can tell you that @properties has invested millions to ensure that we stay on the leading edge of technology and marketing, because we have. We can also tell you that our agents are held to a higher standard of service, professionalism, and performance than any other brokerage in the business, because they are.
We can tell you all of that.
But what matters most is that you experience it. In short, we make it our goal to provide you with expert, caring, and candid advice throughout one of the most important transactions you will ever make. That is our commitment to you. It is a commitment we deliver on every transaction we make, one that supports our continued success. Your complete satisfaction is our priority, one that we are continually dedicated to.
For us, it is simple; we just won’t accept anything less.
For more information about @properties, please visit http://www.atproperties.com/about-us
or call Dave Straub 773.255.3180
We can tell you all of that.
But what matters most is that you experience it. In short, we make it our goal to provide you with expert, caring, and candid advice throughout one of the most important transactions you will ever make. That is our commitment to you. It is a commitment we deliver on every transaction we make, one that supports our continued success. Your complete satisfaction is our priority, one that we are continually dedicated to.
For us, it is simple; we just won’t accept anything less.
For more information about @properties, please visit http://www.atproperties.com/about-us
or call Dave Straub 773.255.3180
Monday, August 17, 2009
@properties Market Report
@properties Market Report
http://www.atproperties.com/marketReport/
The @properties Market Report is the only real estate report that takes Chicago homebuyers and sellers inside the numbers, to offer real insights into local market activity.
For attached housing (condos and townhomes), data is now divided by neighborhood, and also by number of bedrooms and number of baths. This gives consumers a true “apples-to-apples” comparison of sales in their neighborhood. Similarly, for detached or single-family homes, the report is divided into four price points, also allowing home owners to compare and contrast more similar homes.
The data itself, which includes average market time, average price and number of units sold, can now be viewed in several different ways by the user. Consumers interested in buying or selling a home right now can sort the data by consecutive seasons. This shows the latest fluctuations and market trends and is similar to the data your agent uses when helping you determine a bid or asking price. For consumers interested in more long-term pricing trends, it can be helpful to view the annual comparisons, which remove seasonal influences and fluctuations.
One of the most important concepts this report confirms is the local nature of real estate, which goes far beyond what's happening region by region or city by city. In Chicago, local means neighborhood by neighborhood, block by block.
The @properties Market Report is a great top-line resource for understanding the trends that affect your local real estate market. For a more in-depth analysis and thorough property evaluation, turn to your local @properties sales agent. No one knows the market better.
Click on a neighborhood below to view our current Market Report.
http://www.atproperties.com/marketReport/
http://www.atproperties.com/marketReport/
The @properties Market Report is the only real estate report that takes Chicago homebuyers and sellers inside the numbers, to offer real insights into local market activity.
For attached housing (condos and townhomes), data is now divided by neighborhood, and also by number of bedrooms and number of baths. This gives consumers a true “apples-to-apples” comparison of sales in their neighborhood. Similarly, for detached or single-family homes, the report is divided into four price points, also allowing home owners to compare and contrast more similar homes.
The data itself, which includes average market time, average price and number of units sold, can now be viewed in several different ways by the user. Consumers interested in buying or selling a home right now can sort the data by consecutive seasons. This shows the latest fluctuations and market trends and is similar to the data your agent uses when helping you determine a bid or asking price. For consumers interested in more long-term pricing trends, it can be helpful to view the annual comparisons, which remove seasonal influences and fluctuations.
One of the most important concepts this report confirms is the local nature of real estate, which goes far beyond what's happening region by region or city by city. In Chicago, local means neighborhood by neighborhood, block by block.
The @properties Market Report is a great top-line resource for understanding the trends that affect your local real estate market. For a more in-depth analysis and thorough property evaluation, turn to your local @properties sales agent. No one knows the market better.
Click on a neighborhood below to view our current Market Report.
http://www.atproperties.com/marketReport/
SIGNS OF LIFE EMERGE IN SALES OF RESIDENTIAL REAL ESTATE
SIGNS OF LIFE EMERGE IN SALES OF RESIDENTIAL REAL ESTATE
But it isn't a good time to speculate, advisers tell clients eager to enter market
By Jeff Benjamin
August 9, 2009, 6:01 AM EST
http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20090809/REG/308099988&ht=chicago housing market
Shared via AddThis
But it isn't a good time to speculate, advisers tell clients eager to enter market
By Jeff Benjamin
August 9, 2009, 6:01 AM EST
http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20090809/REG/308099988&ht=chicago housing market
Shared via AddThis
Rental market afloat amid turmoil
Rental market stays afloat amid housing turmoil
Those who can't buy, rent — and investors are taking notice
By Janet Morrissey
May 5, 2008, 6:01 AM EST
http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20080505/REG/609385045
Shared via AddThis
Those who can't buy, rent — and investors are taking notice
By Janet Morrissey
May 5, 2008, 6:01 AM EST
http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20080505/REG/609385045
Shared via AddThis
Thursday, August 6, 2009
Home Sales Are Gaining Ground!
Chicago's real estate market has provided homebuyers and sellers with a plethora of unique opportunities in recent months. Thanks to incentives like the first time home buyer tax credit, and record low mortgage rates, buyers and sellers alike have good reasons to celebrate. With motivations like these, it should come as no surprise that our own city's home sales have increased 1.1% over the last month, one of the best in the nation.
Utilizing Standard & Poor's Case-Shiller Index, a tool that is used to analyze sales activity, economists can report a .5% increase in home sales across the U.S. Experts alike agree that the change in momentum is rather significant, providing additional data which illustrates new home sales up an additional 11% in June. While distressed homes recently accounted for over 50% of the home sales, they have now decreased to a more satisfying 33%*. With improved builder sentiment, and an increase in investor energy, buyers and sellers alike are on the lookout for these incredible opportunities.
Thanks to these extraordinary incentives, homebuyers are materializing all over Chicago's marketplace. The first time homebuyer tax credit — which is available until November 30, 2009 — provides qualified first time buyers with an incredible $8000 tax refund. With record low mortgage rates from the Federal Housing Administration, homebuyers are provided better opportunities to qualify for home loans, and create personalized payment options. As homebuyers gain access to our diverse marketplace, sellers are better able to market and sell their home for a more attractive price.
As opportunities increase for homebuyers and sellers, it is imperative that you have a professional REALTOR® who can be an advocate on your behalf. Thanks to my knowledge, and expertise in the Chicago marketplace I am confident that we can reach your goals together. Please, don't hesitate to call me at any time for questions on market conditions, or to schedule a consultation.
*Source: Wall Street Journal, 7/29/2009
Dave Straub, @properties 773.255.3180
Utilizing Standard & Poor's Case-Shiller Index, a tool that is used to analyze sales activity, economists can report a .5% increase in home sales across the U.S. Experts alike agree that the change in momentum is rather significant, providing additional data which illustrates new home sales up an additional 11% in June. While distressed homes recently accounted for over 50% of the home sales, they have now decreased to a more satisfying 33%*. With improved builder sentiment, and an increase in investor energy, buyers and sellers alike are on the lookout for these incredible opportunities.
Thanks to these extraordinary incentives, homebuyers are materializing all over Chicago's marketplace. The first time homebuyer tax credit — which is available until November 30, 2009 — provides qualified first time buyers with an incredible $8000 tax refund. With record low mortgage rates from the Federal Housing Administration, homebuyers are provided better opportunities to qualify for home loans, and create personalized payment options. As homebuyers gain access to our diverse marketplace, sellers are better able to market and sell their home for a more attractive price.
As opportunities increase for homebuyers and sellers, it is imperative that you have a professional REALTOR® who can be an advocate on your behalf. Thanks to my knowledge, and expertise in the Chicago marketplace I am confident that we can reach your goals together. Please, don't hesitate to call me at any time for questions on market conditions, or to schedule a consultation.
*Source: Wall Street Journal, 7/29/2009
Dave Straub, @properties 773.255.3180
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