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. 

Spaces - Real Estate Contingencies -part 2

The second frequent contingency is for attorney review time period.  Offers to purchase are made on standardized forms and the details are worked out between the buyer and seller during their negotiations.  Once both have signed and the contract is accepted by both parties, the contract is given to the attorneys for each side of the transaction.  They have a specified time to review the contract, and the legal details of the property and to make any clarifications to the details that were worked out during negotiations or issues that arise from inspection or any other due diligence that is done on the behalf of their clients.  The attorneys cannot change the price that was offered for the property, but they do negotiate credits for items found in inspection or in the legal description of the property or its title, as well as clarify and explain any condominium documents.

Assistance in making mortgage payments

Illinois Launches Hardest Hit Program
The new Illinois Hardest Hit program aims to help working Illinois families who are having trouble making mortgage payments due to unemployment or under-employment stay in their homes. The Illinois Housing Development Authority (IHDA) has partnered with the U.S. Department of Treasury to offer temporary mortgage payment assistance. Qualified homeowners can receive up to $25,000 over 18 months as a 10-year loan to keep mortgages current and make ongoing payments, including fees and penalties. Go to http://lyris.illinoisrealtor.org/t/334220/16491058/3867/0/ to learn more.

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/

Spaces - Real estate transaction contingency 1

One of the common contingencies to an offer to purchase a property is for an inspection.  This is generally done by a licensed inspector hired by the buyer to take a more detailed look at the property.  The inspector spends time testing the mechanical aspects of the property and looking for any safety or heath defects that should be addressed before changing ownership of the property.

Bucktown's six corners sees burst of development | News | Crain's Chicago Business

Bucktown's six corners sees burst of development News Crain's Chicago Business

Green Scene: Tracking the life span of City Trees

Here's an article about the folks that are tracking the success of a charcoal suplement for the trees along Milwaukee Ave in Bucktown and Wicker Park.

http://www.chicagobusiness.com/section/blogs?blogID=ann-dwyer&plckController=Blog&plckBlogPage=BlogViewPost&uid=16ea2629-7e90-46f0-a706-dd6152764513&plckPostId=Blog%3a16ea2629-7e90-46f0-a706-dd6152764513Post%3afd2c398d-ac42-4d53-9460-437f4b03e54d&plckScript=blogScript&plckElementId=blogDest