Archive for the 'For Homeowners' Category
Mortgage Interest Rates Help Boost Affordability Of Chicago Condos, Single-Family Homes
May 18th, 2012 categories: Economic Recovery, For Buyers, For Homeowners
Why is now a great time to buy a house? Housing prices are affordable in Chicago, even in the city’s top neighborhoods, places like Lincoln Square, Lakeview and Lincoln Park. Sellers are willing to negotiate. And there are plenty of homes from which to choose across the country.
But just as important, mortgage interest rates recently fell to yet another historic low point.
Bloomberg recently reported on this new milestone. According to the story, the average rate for a 30-year fixed-rate mortgage loan fell to 3.83 percent during the week ended May 10. This is the lowest this figure has been since Freddie Mac began tracking the number in 1971.
Borrowers hoping for a 15-year fixed-rate mortgage received good news, too. The average interest rate on a 15-year fixed-rate mortgage loan fell to 3.05 percent last week. That’s down from 3.07 percent the week earlier.
This means that it’s cheaper to finance a home. If you took out a $200,000 30-year fixed-rate mortgage loan with an interest rate of 6 percent, you’d face a monthly mortgage payment of $1,199.10.
But if you dropped that interest rate to 3.83 percent for the same loan, you’d have a monthly mortgage payment of just $935.33.
That’s a difference of $263.77 a month, or a little more than $3,165 a year.
So if you’re thinking about buying a home, now might be the time to act. It’s impossible to predict what mortgage interest rates will do in the coming weeks. But the rates today are outstanding ones, historically so.
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Case-Shiller Numbers Paint Picture Of A Still-Struggling Chicago Housing Market
April 30th, 2012 categories: Economic Recovery, For Buyers, For Homeowners, For Sellers, Housing Market
The most recent numbers from the Standard & Poor’s/Case-Shiller housing index paint a grim picture of the Chicago-area housing market. According to a story by Crain’s Chicago Business, the numbers show that housing prices in the Chicago area have fallen to a 12-year low.
That’s right: Housing values in the city in February fell to where they last stood in May of 2000, according to the Case-Shiller numbers.
The Case-Shiller report found that Chicago-area single-family home prices fell 2.5 percent in February when compared to January. Prices were down a high 6.9 percent this February compared to the same month one year earlier.
This news is especially grim if you purchased your Chicago-area single-family home or condominium in late 2006. According to Case-Shiller, Chicago-area housing prices have fallen 37.5 percent from where they stood in September of 2006, the peak of housing values in the city and suburbs.
The Crain’s story quotes Tom Feltner, vice president at Chicago’s Woodstock Institute, who says that this probably isn’t the bottom for the Chicago housing market, either. According to Feltner, we should expect to see prices for Chicago-area condos and single-family homes to continue to fall as an influx of foreclosure homes hits the market.
If you have to sell today, and you originally bought your residence in 2004, 2005 or 2006, the reality is that you’ll probably take a loss in the sale. Remember, buyers today don’t care what you paid for your residence six years ago. They only care about what your property’s market value is today.
If you absolutely must sell, then, it’s important to work with a skilled REALTOR® who knows your community. This agent can help you set the right price for your property, one that will generate the highest number of quality offers. It’s important, too, to listen to the advice of your REALTOR® when it comes to listing price. You can be stubborn and demand to list your residence for a higher price. The odds are good, though, that buyers will simply ignore your property and move on to those residences that are priced properly according to today’s market.
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Too Many Foreclosures In Chicago Area For Housing Values To Rise
April 17th, 2012 categories: Chicago Real Estate News, For Homeowners, For Sellers, Foreclosures, Housing Market
Don’t expect housing prices in Chicago to rise until the high number of foreclosure properties in the area are finally sold off. Unfortunately, according to the latest information from foreclosure site RealtyTrac, that isn’t going to happen any time soon.
According to the numbers, foreclosures across Illinois rose 17 percent during the first quarter of 2012 when compared to the fourth quarter of last year. Foreclosures in the state also jumped 14 percent when compared to the first quarter of 2011.
In fact, Illinois had the dubious distinction of having the third most foreclosures filings in the country during the first quarter, with its 37,600 properties with foreclosure filings trailing only California and Florida.
RealtyTrac’s March numbers for Illinois weren’t any better. According to the site, one in every 383 Illinois housing units received a foreclosure filing in March. Cook County alone during the month saw 6,950 foreclosure filings.
Foreclosures are bad for everyone. Families going through them suffer great financial loss and even greater emotional turmoil. Banks certainly aren’t thrilled to be stuck with so many homes that they usually have to sell below market value. And then there are other homeowners. When foreclosures dot their neighborhoods, they drag down the values of all nearby homes.
Just look at the average price of a foreclosure property in Illinois, according to RealtyTrac: $121,387. Considering that in March Illinois had 102,068 foreclosure homes, according to the site, that’s a lot of low-cost inventory for buyers to work through.
If you want to sell your home, this isn’t the best news. My advice? If you don’t absolutely have to sell, hold off. If you have no choice, talk with a REALTOR® who knows your neighborhood and can help you set the best possible price for your residence.
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Lost Your Home To Foreclosure In Chicago? You Might Be Owed Money
April 2nd, 2012 categories: Chicago Real Estate News, Economic Recovery, For Homeowners, For Sellers, Foreclosures, Housing Market
Some former Chicago homeowners who lost their residences to foreclosure may be due some money from Cook County, according to a recent story by NBC 5.
The Cook County Clerk of the Circuit Court currently holds a pot of about $16 million in surplus funds created after foreclosed homes were re-sold. Those foreclosed homeowners who owed less on their mortgage loans than what these homes were sold for will receive the extra funds.
Of course, not everyone is owed a big payday. Dorothy Brown, clerk of the circuit court, told NBC 5 that one homeowner is owed just 13 cents. Of course, Brown also said that another homeowner is due $400,000.
The problem, though, is tracking down all of the former Chicago homeowners who are owed money. Many of these owners don’t realize that they are owed the money. Many who have suffered through the foreclosure process don’t leave forwarding addresses.
There is a way for Chicago residents who’ve gone through foreclosure to quickly determine if they are owed funds. They simply have to log onto the Cook County Clerk of the Circuit Court Website and enter their last names, first initials and phone numbers.
Brown told NBC 5 that she wanted to set up the Web site to make life at least a bit easier for those who have lost their residences to foreclosure. After all, these families have already been through an extraordinary amount of stress. Maybe the money they are owed can help at least a bit. Many homeowners who have lost their residences to foreclosure are also saddled with large amounts of credit-card debt and other unpaid bills. Every little bit of extra money, especially in today’s challenging economy, can help.
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Chicago Becoming Popular Destination For Retirees
March 12th, 2012 categories: Chicago Info/News, Economic Recovery, For Buyers, For Homeowners, For Sellers
Chicago has become a prime destination for retirees. And that’s good news for homeowners here.
According to a recent feature story by the Reuters news wire, a growing number of U.S. residents are choosing to retire closer to their homes than they had in the past. The story cites Chicago as one city that is now attracting a greater number of retirees.
This is a change from the traditional thinking regarding retirees. It used to be that when people moved after retirement they traveled to warm-weather cities in Arizona and Florida.
Today, though, retirees are more often choosing to retire in smaller homes or condominiums near where they spent much of their lives. The Reuters story cites several reasons for this: Retirees often want to remain near their chidren and grandchildren. Others want to remain active with their local churches and community organizations. Others simply have become a part of their community and don’t want to leave it behind, even for the promise of warmer temperatures.
Economic factors are also making cities such as Chicago attractive places for retirement. Many retirees purchased their homes long enough ago that they’ll still make a substantial profit, even in today’s challenging housing market, when they sell their properties. And because housing prices in Chicago and its suburbs are down from their peaks in 2006, these retirees when downsizing can afford nice residences in prime locations.
And by staying in a city like Chicago, retirees can take advantage of the eclectic restaurants, shopping districts and entertainment that a large metro area like ours offers.
I’ve always said that Chicago is one of the best places in the country to live. This new report from Reuters provides me with just one more piece of evidence. If retirees are choosing to live here, despite the (usually) bone-chilling winters, you know that Chicago’s a special place.
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