Archive for the 'Real Estate News' Category
Buffett Invests In Chicago-Area Affordable Housing
April 20th, 2012 categories: Chicago Real Estate News
How attractive of a long-term investment does Chicago real estate remain even during the worst real estate downturn any of us can remember? Attractive enough to earn the investment dollars of financial legend Warren Buffett.
According to a recent story by Crain’s Chicago Business, mega-wealthy investor Buffett recently debuted a program to finance low-income housing in the Chicago area.
The Crain’s story says that the new venture will first provide funding for a nearly $29 million center in the Chicago suburb of Lansing designed to serve senior citizens who rely on Medicaid.
The St. Anthony Supportive Living Facility would operate as a supportive living facility, meaning that it would provide meals, housekeeping and help with medications for the low-income senior citizens residing there.
I enjoy reading stories like this. It gives me yet more evidence that savvy investors recognize that housing in Chicago and its suburbs is a smart place to put their dollars. It’s true that Chicago housing values have dropped during the Great Recession and its slow recovery period. That’s true, though, of the vast majority of major metropolitan areas across the country.
What matters, though, is the long-term value of Chicago real estate. During the housing boom too many people became deluded; they thought they could purchase condominiums or single-family homes in neighborhoods like Lincoln Square, Lincoln Park and Lakeview, hold onto them for less than a year and then sell them for big profits.
This worked briefly. But it isn’t happening today. That’s because real estate was never meant to be a get-rich-quick scheme. Real estate is a different kind of investment. First, it provides buyers with tangible benefits: It’s a roof over their heads, shelter from the outside world, a place for families to grow. Secondly, real estate has historically increased in value over the long term. This means that homeowners who held onto their properties for 10 years or longer have historically made a profit when they sold.
I believe that Chicago real estate is still a wise long-term investment. I can’t guarantee that home values here will again rise. No one can. But just look at the move made by Buffett. If he believes in Chicago housing, who are we to argue?
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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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Buyers Choosing Cities, Skipping Far-Flung Suburbs
April 9th, 2012 categories: Chicago Real Estate News
Suburbs grew quickly during the days of the residential housing boom. Even those located long, long commutes from the city of Chicago sprouted new housing subdivisions on a seemingly daily basis.
Those days are gone.
A recent story in the Chicago Sun-Times detailed the dwindling growth seen by Kendall County, a formerly fast-growing county about 50 miles southwest of Chicago.
During the housing boom, the population of this county had more than doubled. From 2000 to 2010, it ranked as the fastest-growing county in the United States.
Today, though, grown has fizzled in Kendall County, according to the Sun-Times story. In 2011, the county’s population grew by just 1 percent.
The reasons are obvious: The housing boom ended, and home buyers realized that life is easier if you live near where you work. That 50-mile commute two times a day to and from Chicago is no easy trek. Secondly, gas prices have soared. That has made the commute to Chicago not only tiresome, but costly.
Today, buyers are more frequently choosing to purchase homes in urban areas, such as the many desirable neighborhoods of Chicago. They want neighborhoods in which they can walk to public transportation, movie theaters, retailers, restaurants and grocery stores.
That’s what Chicago offers: exciting, walkable neighborhoods.
That’s why I always tell my buyers that Chicago remains a great city in which to buy a home. People want to live in Chicago neighborhoods such as Lincoln Park, Lincoln Square and Lakeview because of all the amenities they offer. That’s not going to change, even as the housing market continues to fight through its current slowdown.
What will happen to the far-flung counties such as Kendall County? No one knows for sure, but don’t expect their populations to soar any time soon. Many of today’s buyers are looking for a new type of living experience, one that far-off suburban areas just can’t provide.
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Neighborhood Amenities Key To Finding The Right Home
April 6th, 2012 categories: Chicago Real Estate News
What do buyers look for when searching for a Chicago home? They want to pay a fair price, of course. And they often want modern kitchens, updated bathrooms and first-floor master bedrooms.
But increasingly buyers today want to live near baseball fields, gyms, parks, ice arenas and other recreational amenities.
The Chicago Tribune recently ran a story taking a look at this trend.
The story highlights examples of several buyers who chose their Chicago residences largely because they were located near everything from baseball fields to fitness centers to city parks. The story leads off, for example, with a family that moved to the Lexington Square housing development in the Bridgeport neighborhood in part because the development stands just a mile from U.S. Cellular Field, home of the White Sox. One of the buyers is a long-time White Sox fan and can now watch games at the park from his home’s rooftop balcony.
Of course, being near U.S. Cellular Field wasn’t the only reason this particular buyer bought the condo. And recreational amenities, though a selling point, are rarely the sole reason why buyers purchase any home.
But neighborhoods, and the amenities they boast, remain important factors for buyers. This is especially true in challenging economic times. Those homes that best hold their value are those that are located in desirable neighborhoods, places that are home to a mix of restaurants, shops, parks, schools, theaters and bars. Neighborhoods with high walkability factors — residents can get to grocery stores, coffee shops and clothing stores without jumping in their cars — tend to attract a greater number of buyers.
This is important information for buyers. At resale time, homeowners want every advantage that they can get. A walkable neighborhood with plenty of amenities ranks as one of the most important.
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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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