Holiday Shopping Woes Provide More Evidence of Housing Market’s Importance
January 5th, 2009 categories: Chicago Real Estate News, FSBO's, For Buyers, For Homeowners, For Sellers, Housing Market
It wasn’t the happiest of holiday seasons for retailers this year. And no wonder: With home prices and sales continuing to fall across the country, few people were in the mood to spend big on their holiday gifts this December.
It shows once again just how important the home-selling business is to the health of our nation’s economy.
SpendingPulse, a division of MasterCard Advisors that tracks sales paid for by credit card, checks and cash, came out with some depressing numbers regarding holiday shopping. According to preliminary figures, total retail sales during the holiday shopping season fell between 5.5 percent and 8 percent from a year earlier, according to the tracking service.
Not all of this can be blamed on the economy. Terrible snowstorms and bitterly cold weather throughout much of the country kept many shoppers away from the stores. I know I didn’t feel like doing too much shopping on those below-zero days in Chicago.
Still, if the economy were better, and if housing sales weren’t so dismal, you can bet that consumers would have spent more when checking items off their holiday wish lists. Whenever I read about grim sales numbers, it provides me with one more unneeded reminder of why it’s crucial for the federal government to do something to help free up mortgage credit. Buyers may want to take advantage of the great housing prices in their markets. But how can they if mortgage lenders are making it so difficult to qualify for credit?
I recommend to my buyers that they explore the possibility of FHA loans. These loans are becoming the go-to source of mortgage financing for a growing number of buyers. They come with great interest rates and require lower down payments. They’re backed, too, by the federal government.
No one wants to go back to the days of the housing boom, when mortgage lenders gave financing to everyone, no matter how dismal their personal financial situations may have been. But we can’t go too far in the other direction, either, making it nearly impossible for the majority of residents to qualify for home loans.
There has to be a happy medium out there. And if the government doesn’t do something to help us get to it, we can all expect to read about more terrible holiday shopping seasons in the years to come.
PLEASE CLICK HERE TO VIEW PROPERTIES NOT YET ON THE MARKET.
| Discussion: No Comments »
Grips of Segregation Waning in Many Popular Chicago Neighborhoods
January 2nd, 2009 categories: Chicago Real Estate News
The Chicago Tribune has been running a series of outstanding feature stories focusing on Chicago’s history of segregation. You can read the latest of these stories here. The main point, though, is a sad one: Chicago is known as one of the most segregated cities in the country, with different races and ethnic groups rarely living amongst one another.
There is some good news, though: This is changing. Yes, it’s changing slowly, but it’s still changing, nonetheless.
In many of the neighborhoods where I help residents buy and sell homes, segregation is already less of an issue than it is in other city communities. For instance, look at the neighborhood of Lincoln Square, one of the trendiest communities in the city. According to the Chicago Tribune, the neighborhood has a diverse mix of races, with 66.9 percent of the population here white and 26.5 percent Spanish. An additional 13.5 percent is Asian, with 3.3 percent African-American.
In Wicker Park, 58.2 percent of residents are white, while 46.9 percent are Hispanic and 9.9 percent are African-American. And in Bucktown, 65.1 percent of the population is Hispanic and 48.4 percent white.
Of course, segregation remains a serious issue throughout most of the city, especially so between white homeowners and African-American homeowners. You just don’t see too many neighborhoods – with the exception of, perhaps, the Beverly and Morgan Park neighborhoods on the city’s South Side – where there is a fairly equal population of white and African-American homeowners.
Hopefully, though, the gradual change we’ve seen throughout the city will only intensify. There was a lot of positive talk regarding race relations during incoming president Barack Obama’s historic campaign this year. Let’s hope that all that wasn’t just talk. Let’s hope that true diversity finally does come to Chicago’s neighborhoods.
PLEASE CLICK HERE TO VIEW PROPERTIES NOT YET ON THE MARKET.
| Discussion: No Comments »
Lincoln Square Retains Identity While Adapting to Changing Times
December 31st, 2008 categories: Chicago Real Estate News
For me, the Chicago Tribune’s Chicago Homes section is at its best when it is highlighting the diverse neighborhoods of the city.
This Saturday, the Tribune did just that when it ran a profile of Chicago’s Lincoln Square neighborhood, one of those unique city communities where property values are not just holding steady, they are increasing. You can read the story here.
The Tribune story rightly points out that as Lincoln Square grew into the busy and sought-after neighborhood that it is today, it did not lose touch with its longtime identity. As the story says, for most of its existence Lincoln Square has been known as the home to a thriving German immigrant population. That Germanic flavor still exists here: Just try any of the restaurants in Lincoln Square that serve delicious bratwurst and sauerkraut.
But Lincoln Square is also home to a diverse array of independent shops, everything from small coffee houses to non-chain bookstores and a movie theater. It also houses the Sulzer Regional Library, one of only two regional branches in the Chicago Public Library system.
It’s little surprise that the neighborhood has become one of the trendiest in the city. The median sales price of homes in Lincoln Square stands at $335,750. That’s higher than the overall median sales price of Chicago homes. It’s also a median sales price that, unlike those in most parts of the city today, is still rising.
Of course, the neighborhood isn’t perfect. The Chicago public schools located here record standardized test scores lower than the city’s average. It can also be a struggle, as it is with many North Side neighborhoods, to find parking. But on the whole, this Chicago neighborhood boasts many more pluses than it does negatives.
If you’re interested in living in a slice of the city where homes are still appreciating and there is plenty to see and do, you owe it to yourself to explore Lincoln Square.
PLEASE CLICK HERE TO VIEW PROPERTIES NOT YET ON THE MARKET.
| Discussion: No Comments »
Remodeling? Tackle the Home-Improvement Projects That Pay Off
December 30th, 2008 categories: FSBO's, For Buyers, For Homeowners, For Sellers
There was a time when it looked like home remodeling was going to replace baseball as our country’s national pastime. The remodeling craze has since cooled down a bit, but this doesn’t mean that homeowners have totally abandoned the home-improvement craze, especially if they’re thinking of selling. The question, though, is this: If you want improve your home, what projects will pay off the most when it’s time to sell?
The answer might be found in the National Association of REALTORS® Remodeling Cost vs. Value Report. The report, put out every year, highlights those home improvements that return the highest percentage of their cost. It also points out those that return the lowest.
For the second year in a row, the home improvements that provided the highest return upon resale were those that focused on a home’s exterior. Upscale fiber cement siding returned the highest percentage of costs, with home sellers recouping 86.7 percent of their costs when selling. Wood decks came in next, bringing a return of 81.8 percent. Coming up next were mid-range vinyl siding at 80.7 percent and upscale foam-backed vinyl siding at 80.4 percent.
Those remodeling projects that returned the least amount of value were home office remodeling projects, which returned 54.4 percent of the money homeowners put into them; sunroom additions, which returned 56.6 percent; and back-up power generators, which returned 57.1 percent.
Bathroom remodels have traditionally returned a high percentage of costs. That didn’t change this year, though the percent of costs that these remodeling projects brought back did dip a bit. A mid-range bathroom remodel can be expected to return 74.4 percent of project costs to a seller on resale.
All of this information is good to know. However, I don’t recommend that homeowners let expected returns be the sole factor in their remodeling decisions. Remember, you have to live in your home until you sell it. If you plan on living in your residence for several years, it makes sense to renovate it so that it fits the life that you and your family lead.
PLEASE CLICK HERE TO VIEW PROPERTIES NOT YET ON THE MARKET.
| Discussion: 1 Comment »
Tough Market Means Bad News for Local Condo Developers: Even Trump
December 29th, 2008 categories: Chicago Real Estate News
There was a time – not too long ago, actually – when every developer wanted to build a condo tower in downtown Chicago. And why not? During the residential housing boom, developers were able to sell the condos quickly, and for prices that rose as high as the towers themselves.
Remember the heady days when Donald Trump first announced, and then broke ground on, Trump International Hotel & Tower? He was confident that he’d sell out his project in record time.
Trump isn’t so confident today, as his development still hasn’t been finished and many of his condos sit unsold. And he’s hardly alone among local developers.
A recent story in Crain’s Chicago Business highlights just how far the fortunes of many Chicago condo developers have fallen. According to the story, a growing number of high-rise developers are either seeking or have received extensions on construction loans that are soon to be due. At the same time, developers are struggling to sell their empty condos, with many facing the prospect of loan defaults. The Crain’s story says that foreclosure may be inevitable for the weakest of the projects.
Of course, if you happen to be struggling to sell a condo of your own, you know exactly how the high-rise developers quoted in the Crain’s story feel. It’s difficult today to sell any home. Selling a condo is even more challenging.
The problem is that there are so many new condos available. It’s hard for someone selling a condo that’s even two or three years old to compete with all the brand-new spaces in newer buildings that are also on the market.
If you’re struggling to sell your condo, though, don’t panic. There are steps you can take to move that unit.
The most important of these is to price your unit properly. Work with a REALTOR® who can tell you what comparable units in the same neighborhood have recently closed for. This will give you a good idea of what the market will bear. Remember, your condo is only worth what buyers are willing to pay for it. Price it too high, and you’ll struggle to notch any solid offers.
Secondly, to sell your residence quickly and at a fair price, make sure you’ve updated your condo unit. Buyers like bright, open kitchens and large bathrooms. They’re looking for hardwood floors and higher-end appliances. If you can add at least some of these features, you’ll give yourself an advantage.
Finally, if you don’t have to sell, you might consider waiting out this bad market. The competition for condo sales is tough right now. It’s hard to stand out. Your best move may be to wait until the market turns around and the excess condo inventory starts to disappear.
PLEASE CLICK HERE TO VIEW PROPERTIES NOT YET ON THE MARKET.
| Discussion: No Comments »
