Monthly Newsletter - @properties - Market Dislocations Create Opportunity

MARKET DISLOCATIONS CREATE OPPORTUNITY

With interest rates, inventory and pricing still deviating from historic norms, consumers have ample opportunity in today's real estate market.




Let's talk for a minute about "not normal." Sometimes not normal can be scary, like when your teenage daughter brings home the bass player from a Norwegian heavy metal band. But not normal can also be a beautiful thing. Recently, a few seemingly unwitting patrons in New York City bought paintings by the renowned graffiti artist Banksy for a couple hundred dollars each. The paintings are believed to be worth over $100,000.

In real estate, too, not normal can be scary or beautiful. But getting comfortable with the idea of not normal can shine a light on unique opportunities that otherwise go unnoticed. While today's real estate market is well along the path back to normal, there are still a number of anomalies that buyers or sellers can use to their advantage.

• Inventory - A normal level of housing supply is 6 months. Currently, supply across Chicagoland is just 4.3 months. That means sellers currently face about 30% less competition than they would find in a typical market.

• Mortgage Rates - The average 30-year mortgage rate since 1990 is 6.72%. Today's 30-year mortgage rate is 4.38%. We have gotten so used to abnormally low borrowing costs that many people take little notice of the monumental opportunity arising from this deviation.

• Rent vs. Own - Trulia.com's latest Rent vs. Buy Report estimates that it's about 36% cheaper to own than to rent in the Chicago area. This major discrepancy in housing costs should make any prospective homebuyer (or landlord) take notice. Learn more about the Rent vs. Buy Report in this month's Market Minute video. in a separate posting...



While each of these current dislocations opens doors for certain buyers and sellers, they won't last forever. We can count on mortgage rates, inventory, prices and other measures of the housing market and economy to eventually return to historic trend lines. So embrace not normal...unless, of course, his name is Sven, he's 6'4", and he's wearing white face paint and spiked wrist bands.

If you're thinking about buying or selling, or looking for more information on your local market, contact me today.


In the news:


U.S. Mortgage Rates Rise For The First Time In Five Weeks
By Elizabeth Dexheimer | October 10, 2013

The shutdown has lengthened the wait for some borrowers seeking mortgages backed by the Federal Housing Administration and Department of Agriculture. It also has postponed the release of economic-data reports, including the Department of Labor's monthly employment figures, which Federal Reserve officials use to determine whether to continue stimulus efforts.
More



Five Ways Government Shutdown Impacts New Mortgages
By Brian O'Connell | October 2, 2013

Under normal conditions, home buyers would be leaping off the fence to grab lower mortgage rates, but with the shutdown, there's enough uncertainty in the air to keep mortgage consumers on the sideline until Uncle Sam is open for business again.
More







Median Price Heat Map
October 15, 2013

Where are home prices headed? Select a county, then choose current median home prices or property value changes over the past 1, 3 or 5 years. If the map does not appear below, use our price/ location search from the box at right.
More

Happy Labor Day - I'm hoping to look this content and rested for the next 3 days....

Eva Bergant (312) 543-6819 :: Contact me :: View my profile

Neighborhood Advantages - Transportation

Crain's Chicago Business provided this article this week. 

"CTA, Metra boost home values, study says"

Link to the story: http://www.chicagobusiness.com/article/20130320/BLOGS02/130329960/cta-metra-boost-home-values-study-says

Neighborhoods like Bucktown, Wicker Park, Logan Square, Avondale, Jefferson Park,  Ravenswood, Lakeview, Wrigleyville, Rogers Park, Edgewater, South Loop all benifit from the great transportation options available in Chicago

new additional information

Dear reader,
for the last 22 months I've been writing for the Chicago Pipeline.  My short articles cover what seems interesting to me and to my current buyers and sellers.  Each week I include the recently closed properties in the Bucktown and Wicker Park neighborhoods of Chicago. 

The Pipeline is owner and editor is moving to the new DNAinfo web news for Chicago.  This means closing the Pipeline for the most part.  It's rather sad, but opens new opportunities.    For me it means setting up a new place for the weekly data postings and interesting paragraphs.  That new place is http://residentialspaceschicago.blogspot.com/

Perhaps you will join me at that place, or here.

Enjoy the buying, selling and renting of property - as I do - every day.

Eva Bergant

Residential Spaces - Bucktown and Wicker Park - October 2, 2012

This week 5 of the 10 closings were at 99.1% of the list price or higher.  The number of properties available on the market today is less than it has been recently.  In fact, there are just 3.7 months of inventory in the area, if buying continues at the current rate.  At the end of September 2011 there was over 10 months of inventory of condos and nearly 8 months for single family homes.   Great property that is priced at today’s market is selling quickly.  This is a big market change, and prepared buyers and sellers are making the market move quickly.  Current interest rates continue to be low and attractive. 

The FHA loan programs have a recent change that makes this a financing option for more condo buyers with 3.5% down.  They have increased the maximum % of investor ownership in a condo association that will potentially qualify for FHA loans.  Your loan officers can tell you more about what types of loans you qualify for and what types of properties you are able to purchase now.

Bucktown/Wicker Park closings last week:  2 Detached single family house, 4 Attached condos, and 4 2-4 unit buildings

2Sold - Detached Single 

2125 W Homer 2 bedroom 2 bath 2 Stories 5 days $416,000

1633 N Hermitage 5 bedroom 3.1 bath 3 Stories 1 day $990,000 (99.1%of list price)

4 Sold - Attached Single 

2012 W St Paul #414 2 bedroom 1.1 bath parking, Condo, Duplex, Loft 28 days $300,000 (just over list)

2331 N Lister #D 2 bedroom 2.1 bath 2 garage Townhouse 3+ Stories 23 days  $385,000

1751 W Julian #5 3 bedroom 2 bath 2 garage, spaces Condo 6 days $405,000 (101.5% of list)

1846 W Armitage #1E 3 bedroom 2.1 bath garage Duplex, Condo 9 days $490,000 (106.3% of list)

4 Sold - Two to Four Units 

1350 N Bell 2units, each 3 bedroom $269,900 (Short Sale) (100% of list)

1312 N Claremont 3 units each 3 bedroom $375,000

2232 W Lyndale 2 units – 2 bedroom + 1 bedroom $410,000

1219 N Damen 2 units 3 bedroom + 2 bedroom 5 days  $518,000

Quick take –

What’s on the market now?  List Prices - High Low Average Median

47 Active - Detached Single

$4,400,000 $259,000 $1,334,679 $1,100,000

99 Active - Attached Single

$749,900 $130,000 $414,861 $399,000

14 Active - Two to Four Units

$1,175,000 $270,000 $544,243 $429,500

*** Information sourced from MREDLLC; 10/1/12. Residential properties - Bucktown (Ashland, Western, Fullerton, North) and Wicker Park (Ashland, Western, North, Division)

Have a topic you’d like to see explored or a real estate question send it in. 

If you’d like more information on properties currently on the market or selling your home just drop me a note at EvaB@atproperties.com

Location, location, location - Part 3 – Services

Bucktown and Wicker Park continue to be a destination for Chicagoans and tourists.  We have an abundance of great shopping and dining locations – many of which are supporters of the Pipeline.  We have great local businesses that provide us with every convenience – dry cleaner, car washes, pet services, small grocers and quick stops, lunch spots and shops to get the last items for a great night.  Our choices seem to continue to grow and supporting our local businesses maintains our high quality of life and the desirability of our neighborhoods.

Location - Education access

Location, location, location - Part 2 – Education

From pre school to post graduate studies Bucktown and Wicker Park has the options and the opportunity to reach your goals.  Our parents work with the locals schools to ensure the best quality education is available to their children.  We have several great public schools to walk to and others that are available options. To find out more on the Chicago Public Schools for your address go to http://schoollocator.cps.k12.il.us/   Our neighborhoods have multiple private schools providing choices to parents and offer quality pre-school education and care.  High Schools and Colleges are easily reached by the great transportation options we talked about last week.  Our local demographics show many residents have post graduate degrees or are working towards higher education goals. 

Location - transportation +

The mantra in real estate has always been “location, location, location.”

In Wicker Park and Bucktown, we have several location strengths, beginning with our easy access to the Blue Line and hence to downtown and our airports. CTA buses are readily available, as are taxis. Metra schedules provide an easy link to the suburbs or Loop, and a favorite way to attend Ravinia concerts in the summer. Bicyclists enjoy the bike lanes on Damen and Milwaukee , as well as on Armitage.  There’s new orange bike racks, too.

Those that drive have many ramps in which to enter and exit the Kennedy Expressway (I-90/94) and those in the know know that there’s some great side streets where you can usually avoid congestion, too. All of these location-related boons continue to make Bucktown and Wicker Park a desirable location in which to live, work, and play.

Tax Preparation 2012

Spaces January 15, 2012

Tax preparation season is upon us.  Now is the time to create a Taxes 2011 folder for all the pieces that come in the mail and to collect the information you will need to fill out your return.  Home ownership provides you with deductable mortgage interest and property taxes.  If you bought or sold real estate, or refinanced, this past year, pull out the HUD or RESPA form that was part of your closing documents and provide that to your tax preparer.  Consult with a CPA or tax professional for more details on this and deductions for the new child in the family, education expenses and charitable donations.  As with everything supporting documentation is very helpful. 

Bucktown/Wicker Park closings this past week: 1 Detached single family houses, 2 Attached condos. 0 2-4 unit building:

Detached Single

1406 N Bell, 4 bedroom, 3.1 bath, $622,000

Attached Single

1641 W Le Moyne #3, 3 bedroom, 2.1 bath, 1 parking space Condo-Duplex, Penthouse, $399,000

1304 N Wood #3, 3 bedroom, 2 bath, garage space, Condo Duplex, Penthouse, $445,000

Quick take - What’s on the market now? 

Type, (number), Max, Average, Median, Min Price

Detached (64 properties), $4,400,000, $1,019,329, $762,500, $250,000

Attached (161 condos), $1,099,000, $378,416, $375,000, $79,000

2 -4 units (31 properties), $849,900, $498,925, $499,900, $179,900

*** Information sourced from MREDLLC; 1/15/12. Residential properties - Bucktown (Ashland, Western, Fullerton, North) and WickerPark (Ashland, Western, North, Division)

Have a topic you’d like to see explored or a real estate question send it in. 

If you’d like more information on properties currently on the market or selling your home just drop me a note at EvaB@atproperties.com

New Years Resolutions 2012

Like most Americans, I'm not very loyal to my New Years Resolutions.  It just seems like too much emphasis on change in the month of January.  I tend to spread my resolutions around over the course of the year.   That said, the surveys of people this 2012 New Year have shown the usual weight loss plan has been beaten out by building a savings plan this year.  So I wish you all well on them both. 

The following article takes a look at New Year's Resolutions and how you can point them at your home.  I'm continuing with #6 and adding more of #9

http://www.houselogic.com/home-advice/home-thoughts/houselogic-new-years-resolutions-home/

New buildings and new plans in Streeterville

Affordable housing plan dies in Streeterville. Should it have?

Read more: http://www.chicagobusiness.com/article/20111102/BLOGS02/111109941/affordable-housing-plan-dies-in-streeterville-should-it-have#ixzz1ca4HOeuv

The above article by Greg Hinz brings up some good points and good ideas.

Graphical image of housing price comparisons by zipcode

Based on information from Fiserv the Crains Chicago Business has made the following image available.  Some zip codes are down less than others compared to last year.  Take your time and check it out...

http://www.chicagobusiness.com/article/20111013/PAGES/111019967

From John Fritchey Cook County Commissioner -- Property Tax Workshop

Upcoming Property Tax Workshop for Taxpayers in Lakeview Township Nobody wants to pay more in taxes than they are supposed to. If your property taxes are too high, you have every right to appeal them. Lakeview Township will soon open for appeals with the Cook County Board of Review, providing taxpayers in the township an opportunity to file an appeal of their taxes. To help you with this process, I, and Cook County Board of Review Commissioner Michael Cabonargi, will be hosting an appeals workshop to answer any questions you may have and to assist you with filing an appeal. Details are as follows: When: Thursday, October 20, 6:00-8:00pm Where: Saint Luke, 1500 West Belmont Ave What: Representatives from the Board of Review will explain the appeals process, answer questions and assist taxpayers in filing their appeals. **Please remember to bring your most recent property tax bill**

For more information, please call Bridget at 773-871-4000 or e-mail bridget@fritchey.com

Understanding Your Property Tax Bill It's that time of year again...property tax bills are making their way into your mailboxes. Because many of you may have seen the assessed value of your home go down, you might feel a sense of sticker shock when your property tax bill has increased. Or maybe your assessment stayed the same, but your bill grew sharply. As a way to help my constituents understand why this might be happening, I want to provide this property tax overview to answer some questions you may have. Taxing districts - from schools and parks to libraries and cities - need money to operate. They get this money from property taxes. Generally speaking, from one year to the next, tax levies will remain the same regardless of changes in property values. Taxing districts still need money to cover their bills even though home values in the area may have gone down (the same holds true if home values increase).

If my property value assessment went down, why are my property taxes going up? An assessment is basically an estimate of what a piece of property is worth. This valuation of the property helps decide what part of the local property tax levy will be billed to the property - basically, it helps the Clerk figure out who pays what. But remember, your assessment is only part of the overall equation... Tax rates are calculated by using the amount of dollars levied by the taxing district, the value of all taxable property located within its boundaries, and a state-issued equalization factor.

There are two main reasons your property taxes may have gone up this year: 1. The major City of Chicago taxing districts have asked for a 3.4% increase in property tax revenue - going from $2.001 billion last year to $2.118 billion this year. Much of the overall increase is due to the Chicago Board of Education asking for a $117 million dollar increase in funding. To put it in simple terms, if the whole pie gets bigger, so may your slice... 2. The Alternative Homeowners Exemption (also known as the 7% Homeowner's Exemption), is decreasing per state law and will be fully phased out in 2 years. As the the temporary exemption is phased out, the relief provided by it gets smaller.

Spaces - Real Estate Transaction - Mortgage Contigency

The mortgage contingency is often key to a successful transaction.  This is provides that the buyer will obtain a mortgage for a set amount, down payment,  rate and duration by a particular date.  That date is usually the amount of time that the buyer and their bank has determined it will take to confirm all the details of their financing.  The buyer, and their attorney, must notify the seller if the date cannot be met, and request an extension of this date.  With no notice the contingency is waived.   If the buyer cannot get the financing described, the seller can find a commitment for them, in a specified time frame.   To show that they have the ability to meet this contingency, buyers provide letters of pre approval from their banks.   To a seller the best offer does not have this contingency, and would be a cash offer. 

Chicago Videos 2011 and 1948

Thanks to this blogger for creating a link to two wonderful films of our City.    Check them out.

http://www.chicagonow.com/chicago-ground-up/2011/09/chicago-then-now-two-short-videos/

Growing Vegetables in Containers

Spring is here!   Well at least the calendar says so.  Sunlight is increasing and temperatures will follow soon. 

My thoughts are towards planting flowers and vegetables for the deck and the yard.  I'm fortunate to have a garden, yet I supplement it with some potted plants.  The following link is helpful with ideas, how to's and a list of plants that can do well in pots on the deck. 

Enjoy!
http://www.howdididoit.com/home-garden/how-to-grow-vegetables-in-containers/

Spring Spaces in the Pipeline

SPACES: Real Estate Usually Comes into its Own During the Spring Season
Made possible by Eva Bergant,

@Properties Realtor

Could it be Spring?!

We've had our first taste of warmer weather, the birds seem to be arriving, and the Flower and Garden Show is at Navy Pier!   

In the spring we see the largest number of homes/condos on the market. Spring is about choices, and Real Estate, which comes into its own in spring, reflects this time of new beginnings and options. The market perks up. Snow has melted. Storm windows will soon be a memory.

Click to Enlarge

Check out the graphs of 1) the number places on the market and 2) the number of places under contract and sold in the last 24 months.

Are you thinking of making a change? Spring buyers go on the hunt while smart sellers and REALTORS know that there's no time like the spring to get prepared for a beautiful summer. Sellers who are part of the spring market have been working hard to prepare their homes for sale. Offers made now will most likely have mortgages approved in 30-45 days and closings in 2 months.

green shoes from John Fluevog that don't have anything to do with real estate-- as far as we know.

In Bucktown/Wicker Park, there were NINE closings this week: 2 were detached single family homes and 7 were attached homes. They are as follows:  

1316 N Leavitt 4 bedroom 3 ½ bath modern 3 story home $712,000

1956 W Evergreen 5 bedroom 4 ½ bath restored Victorian with a 1 bedroom 1 bath coach house on a 25 x 171' lot $1,250,000

1232 N Milwaukee #4 2 bedroom 2 bath condo with parking Short Sale $279,000

1744 W Division #1 2 bedroom 2 bath duplex with garage Foreclosure $305,000

1890 N Milwaukee #4D 3 bedroom 2 bath penthouse condo with tandem garage parking $332.000 

 

Flower earrings, like these, spotted at store B vintage, bloom all year long on your ears

1625 W North #201 3 bedroom 2 bath duplex condo with 2 garage spots Foreclosure $336,650

2010 W Potomac #C 2 bedroom 2 ½ bath townhouse with 2 garage spots $466,000 (market time 5 days!!)

1919 W Crystal #103 3 bedroom, 2 baths duplex with garage Bank Owned $515,000

1736 W Le Moyne #1 3 bedroom 2 ½ bath Duplex condo with garage $613,400

*** Information sourced from MREDLLC;3/7/11. Attached Property and Detached Property residential Bucktown (Ashland, Western, Fullerton, North) and WickerPark (Ashland, Western, North, Division)

Do you have a topic you'd like to see explored, or would like more information on properties currently on the market, or selling your home, drop me a note at EvaB@atproperties.com

Check into the condo association when buying or selling

On Monday February 28 the Chicago Tribune ran this article, by Mary Ellen Podmolik. It points out one large item that the buyer does not have the ability to change when looking at condos--the ability to obtain a loan when the building does not meet lenders' criteria.

There are at least five criteria that can eliminate a building from receiving a loan from any Fannie Mae, Freddie Mac or FHA lender (most of the lenders!).  

1 How many units in the building are currently rented? Lenders prefer owner occupied buildings, so the lower the number the better.

2 What is the financial position of the condo association? What are the reserves? While there is no set rule, the budget needs to show that adequate reserves are kept. The association needs to be collecting all the monthly assessments, delinquent units may make the building unqualified.

3 Is there any outstanding litigation with the condo association? Financial liability by the association can cause lenders to walk away.

4 In a brand new building, what is the percent of units sold? For an FHA loan it must be at least 51%, for conventional loans generally over 70%.

5 How much of the building is commercial space? If it's over 25% of the square footage, no loan.

For more information, please read the Tribune article. 

In Bucktown/Wicker Park there were nine closings this week.

Read all about them here. 

Do you have a topic you'd like to see explored, or would like more information on properties currently on the market, or selling your home, drop me a note at EvaB@atproperties.com

  

About Eva: 

Eva Bergant is a Bucktown resident and local Realtor with a community driven style. In addition to being the president of the Bucktown Community Organization (BCO), Eva has served as chair for the annual Bucktown Garden Walk for the past three years. You can reach Eva by email or at 312-543-6819.   

Downtown condo sales hit new low in 2010 | Trend Of The Week | Crain's Chicago Business

Selling 498 units of the 3000 in the market is a tough loss ... and most of these units are in just 30 buildings downtown. New lower pricing has helped buyers and sellers come to agreements, but there is a long tail to this absorbtion.

Downtown condo sales hit new low in 2010 Trend Of The Week Crain's Chicago Business

More than half state's 2010 homebuyers were first-timers | Residential News | Crain's Chicago Business

Here's a piece from Crain's Chciago Business.

First time buyers in Illinois were more than 50% of the buyers this year - mostly from the federal credit in the early part of the year. This also accounts for the significantly lower numbers of purchases in the later part of the year. ... a slow down of business... a lack of federal stimulus to maintain the interest in buying.....

More than half state's 2010 homebuyers were first-timers Residential News Crain's Chicago Business