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
Showing posts with label condo. Show all posts
Showing posts with label condo. Show all posts
Thursday, October 17, 2013
Friday, October 19, 2012
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
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
Wednesday, March 21, 2012
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.
Wednesday, February 22, 2012
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.
Thursday, January 26, 2012
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.
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.
Tuesday, January 17, 2012
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
Wednesday, November 2, 2011
Monday, October 17, 2011
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
http://www.chicagobusiness.com/article/20111013/PAGES/111019967
Wednesday, April 13, 2011
Common Contigencies to a Purchase Contract
Spaces April 11, 2011
The offer was accepted - now what?
After the buyer and the seller have come to an agreement on the price and the terms of the home sale, it's time to work on meeting all the contingencies.
Inspection - In most sales, the buyer has a few days to bring in any inspector or other Licensed persons to examine the property and identify any health or safety defects. These are items that are not obvious to the buyer or seller. An example might be that the inspector looks at the basement sink drain and finds a leak. The buyer might ask the seller to have the pipe repaired or pay for the buyer to have it done at a later time.
Attorney Review - Both buyer and seller will have their attorneys look at the terms of the purchase agreement and the attorneys will come to agreement on any terms. This review is usually as long as the inspection period (or a few days longer) and the attorneys will confirm any responses to the inspection items.
Mortgage - Generally the last completed contingency, since the details of confirming the mortgage funding are the most time consuming. The purchase agreement includes a date by which the buyer and their lender must be able to agree that funding is available for this buyer and this property. The agreement also provides some limits for the loan rate and duration. (This is why it’s so important for buyers to be pre-approved!)
Condo Documents - The Condo Declarations and Bylaws, Rules and Regulations, Budget (current and previous year), Minutes and a 22.1 form will all need to be provided to the buyer for their review, and the attorney. Most are required during the attorney review period. They are also needed by the buyer’s lender who will confirm the financial stability of the condo association before authorizing a loan.
Other contingencies could be the sale of a previous home, pet rules, leases, or other items that both buyer and seller agreed to during negotiations and included in the Purchase Agreement.
In Bucktown/Wicker Park this week, there were six closings! Of the six, four were detached single family homes, and two were attached homes. They are as follows.
1850 N Wilmot, 4 bedroom, 3bath, Rowhome, private yard, garage, $595,000
1880 N Hoyne, 5bedroom, 3 bath +2 ½ baths, Contemporary renovation, attached garage, $1,624,625
1627 N Wolcott, 4bedroom, 4 ½ bath, 4+ Stories ultra modern new construction , $1,950,0001804 N Leavitt, 5 bedroom, 4 ½ bath, Modern open conversion of warehouse space, $2,770,000
1524 N Leavitt #1, 4 bedroom, 3bath, 2 garage spots, Duplex Condo, $399,000
1767 N Hoyne #L, 3 bedroom, 2 ½ bath, updated Townhouse Condo, Attached 2 car Garage, $575,000
*** Information sourced from MREDLLC;4/11/11. 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 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.
The offer was accepted - now what?
After the buyer and the seller have come to an agreement on the price and the terms of the home sale, it's time to work on meeting all the contingencies.
Inspection - In most sales, the buyer has a few days to bring in any inspector or other Licensed persons to examine the property and identify any health or safety defects. These are items that are not obvious to the buyer or seller. An example might be that the inspector looks at the basement sink drain and finds a leak. The buyer might ask the seller to have the pipe repaired or pay for the buyer to have it done at a later time.
Attorney Review - Both buyer and seller will have their attorneys look at the terms of the purchase agreement and the attorneys will come to agreement on any terms. This review is usually as long as the inspection period (or a few days longer) and the attorneys will confirm any responses to the inspection items.
Mortgage - Generally the last completed contingency, since the details of confirming the mortgage funding are the most time consuming. The purchase agreement includes a date by which the buyer and their lender must be able to agree that funding is available for this buyer and this property. The agreement also provides some limits for the loan rate and duration. (This is why it’s so important for buyers to be pre-approved!)
Condo Documents - The Condo Declarations and Bylaws, Rules and Regulations, Budget (current and previous year), Minutes and a 22.1 form will all need to be provided to the buyer for their review, and the attorney. Most are required during the attorney review period. They are also needed by the buyer’s lender who will confirm the financial stability of the condo association before authorizing a loan.
Other contingencies could be the sale of a previous home, pet rules, leases, or other items that both buyer and seller agreed to during negotiations and included in the Purchase Agreement.
In Bucktown/Wicker Park this week, there were six closings! Of the six, four were detached single family homes, and two were attached homes. They are as follows.
1850 N Wilmot, 4 bedroom, 3bath, Rowhome, private yard, garage, $595,000
1880 N Hoyne, 5bedroom, 3 bath +2 ½ baths, Contemporary renovation, attached garage, $1,624,625
1627 N Wolcott, 4bedroom, 4 ½ bath, 4+ Stories ultra modern new construction , $1,950,0001804 N Leavitt, 5 bedroom, 4 ½ bath, Modern open conversion of warehouse space, $2,770,000
1524 N Leavitt #1, 4 bedroom, 3bath, 2 garage spots, Duplex Condo, $399,000
1767 N Hoyne #L, 3 bedroom, 2 ½ bath, updated Townhouse Condo, Attached 2 car Garage, $575,000
*** Information sourced from MREDLLC;4/11/11. 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 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.
Thursday, March 3, 2011
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.
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.
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