Even Super Bowl QBs Struggling In Today’s Condo Market
February 4th, 2010 categories: Chicago Info/News, Chicago Real Estate News, Economic Recovery, For Homeowners, For Sellers, Housing Market, Mortgage Info, Real Estate News
I don’t think Rex Grossman will have too many fond memories of Chicago. True, the former Chicago Bears’ starting quarterback led Chicago to the Super Bowl following the 2006 season. But he lost that game. He eventually lost his starting job, too. He was eventually “kicked” out of Chicago – Bears fans had long since turned on the quarterback – and is now a backup quarterback for the Houston Texans.
Now comes the news that Grossman, like so many other Chicagoans, has had to sell his city condominium at a loss. And not just any loss: According to the Chicago Sun-Times, Grossman sold his condo in River North’s Trump International Hotel & Tower for a whopping $700,000 loss.
The Sun-Times reported that Grossman sold his condo for $2 million last week. The paper also reports that he purchased it for $2.68 million in September of 2008. Grossman originally put the unit up for sale at $2.89 million before reducing his asking price to $2.3 million and eventually selling for $2 million.
Grossman’s tale is a good lesson for the owners of Chicago condominiums: Although the market has picked up considerably since 1/1/2010, unless one has lots of equity or absolutely has to sell, now might not be the best time to put your unit on the market. According to a story in the Chicago Tribune, condo prices in Chicago are now at early 2004 levels.
The Tribune cites data from Standard & Poor’s/Case-Shiller that shows that prices fell 8.5 percent for Chicago condominiums in the 12 months that ended in October.
Many condo owners have no choice but to sell now. Their employers may be transferring them to a new city. Maybe they’ve found a better job on their own in a new location. Or maybe they’re going off to graduate school across the country. Whatever the reason, these folks can’t wait out the market.
Their best bet is to do everything they can to set their condo units apart from their competition. These owners should work closely with their REALTORS® to set up a marketing plan. This may include steps as simple as giving their condo’s interiors a fresh coat of paint or something as advanced as hiring a professional stager to show off their unit in its best possible light.
In today’s Chicago condominium market, sellers need every advantage they can get.
PLEASE CLICK HERE TO VIEW PROPERTIES NOT YET ON THE MARKET.
| Discussion: No Comments »
Struggling to Refinance? Consider the Government
January 29th, 2010 categories: Economic Recovery, For Homeowners, Mortgage Info
Mortgage interest rates are still at historic lows. But many Chicago homeowners haven’t been able to refinance to take advantage of them because the values of their city condominiums or single-family homes have fallen.
Most mortgage lenders or banks require homeowners to have at least 20 percent equity in their homes to qualify for a refinance. But the city of Chicago’s median sales price dropped to $215,000 in November of last year, according to the Illinois Association of REALTORS®. That’s down 3.4 percent compared to the $222,500 median price in November of 2008.
Those homeowners who purchased city condos or single-family homes in 2005 or in the first half of 2006 have more than likely seen their residences’ values fall even more significantly. These buyers were purchasing while the real estate boom was raging, meaning that they were more likely to pay far more for their condos or single-family homes.
What can homeowners do if the value of their Ravenswood two-flat or Lakeview condo has fallen so much that they don’t have any equity in their residences? What if they are underwater on their mortgages, owing more on their homes than what they are worth? This is hardly an unusual situation today. The latest data from First American CoreLogic shows that one in every four homeowners across the nation is underwater.
These homeowners’ best bet might be to contact their mortgage lender or bank and ask if they are offering refinances as part of the federal government’s Home Affordable Modification Program. Under this program, designed to provide some financial relief to struggling homeowners, mortgage lenders can refinance the mortgage loans of homeowners who owe on their first mortgage loans as much as 125 percent of their home’s value. This means that the owners of a $200,000 home could owe as much as $250,000 on their first mortgage and still qualify for a refinance.
Of course, you’ll have to meet certain requirements to qualify for a Home Affordable Modification Program loan. Your home’s loan must be owned or guaranteed by Freddie Mac or Fannie Mae, and you must be current on your mortgage payments.
The vast majority of mortgage lenders are participating in the federal program. But even if your lender isn’t, you should still call. Lenders can opt to refinance your loan at their own discretion, even if you are underwater.
PLEASE CLICK HERE TO VIEW PROPERTIES NOT YET ON THE MARKET.
| Discussion: No Comments »
Multiple Showerheads, Outdoor Kitchens the Latest Victims of the Housing Slump
January 27th, 2010 categories: Chicago Real Estate News
If you watch the home shows on cable channels HGTV, A&E or TLC, you’d think that every bathroom in the United States boasts dual-bowl vanities and showers with multiple shower heads.
But “reality” TV rarely reflects the reality the rest of us see. Thanks to the housing market’s long slowdown, builders are turning away from the frills that we see on the housing shows, and returning to the basics of solid craftsmanship, small but functional homes and energy efficient construction. It remains to be seen if the producers of the TV home shows will ignore this trend or highlight it.
The Associated Press, though, has already caught on. That’s because its reporters were covering the International Builders’ Show held last week in Las Vegas. During the show, the National Association of Home Builders and Better Homes and Gardens released surveys showing that builders were turning away from the luxuries and high-end amenities that largely marked the days of the residential housing boom.
What’s in now? According to the Associated Press, small homes with abundant natural light are at the top of the national trends list. Builders are also focusing on energy efficiency, and they’re providing lots of storage in the new, smaller homes that they’re building.
What they’re not doing is focusing on outdoor kitchens, soaring two-story foyers or the formerly ubiquitous ultra-deluxe bathroom features. Say goodbye to those steam showers.
This should be little surprise. Buyers simply don’t have as much money to spend on luxury items. At the same time, the average asking price of homes has dropped significantly since the housing boom ended in mid-2006. Builders who add too many frills might find themselves priced out of the reach of the vast majority of homebuyers today.
Remember, a larger slice than ever of the national and Chicago housing market is made up of first-time homebuyers. These buyers are looking for granite countertops, but they’re also searching for modest, well-built spaces that don’t cost a fortune to heat or cool. Builders who provide this will be giving themselves an advantage in today’s new housing market.
PLEASE CLICK HERE TO VIEW PROPERTIES NOT YET ON THE MARKET.
| Discussion: No Comments »
How Important are First-Time Buyers in Chicago? Very.
January 25th, 2010 categories: Chicago Real Estate News
As a REALTOR®, I get a bit of a thrill every time I help buyers purchase their first home. Because I specialize in such North Side Chicago neighborhoods as Lakeview, Lincoln Park, Lincoln Square, Roscoe Village and Bucktown/Wicker Park (among others), I’m fortunate enough to work with first-time buyers quite often. These neighborhoods, with their variety of restaurants, entertainment options and shops, attract young couples and families.
But neither Chicago nor Illinois are unique. First-time homebuyers here make up a huge part of the housing market. In fact, you can credit these first-time buyers with boosting home sales last year.
The 2009 Profile of Illinois Home Buyers and Sellers, published by the Illinois Association of REALTORS®, reported that more than half of all the home buyers in the state last year were first-time buyers.
This isn’t a surprise. The federal government’s $8,000 first-time homebuyer tax credit helped encourage new buyers to invest in condominiums or single-family homes. At the same time, interest rates were at historic lows (and still are) and housing prices in Chicago were far lower last year, making it easier for first-time buyers to enter the market.
The survey showed that 51 percent of buyers in the state were first-time buyers last year. That’s slightly above the national average, in which 47 percent of all buyers were first-timers.
The survey included some interesting information about first-time buyers, especially if you’re a fan of statistics. The report said that the median age of first-time buyers in Illinois was 29. The median income among first-time buyers was $64,400. The report also said that 47 percent of first-time buyers used FHA financing, while 38 percent used a conventional loan to finance their purchase.
There were some interesting non-first-time-buyer statistics, too. According to the report, 67 percent of all buyers in the state purchased a detached single-family home, while 22 percent bought a condominium/townhome. In the state’s more urban city regions, including Chicago, 49 percent of the homes sold fit into the condo or townhome categories.
I expect first-time buyers to play an important role in the Chicago housing market in 2010, too. After all, Congress last year voted to extend and expand the first-time buyer tax credit. Housing prices will remain affordable and interest rates will remain low. This is a great time, actually, for first-time buyers to find a reasonably priced Chicago condo or single-family home.
PLEASE CLICK HERE TO VIEW PROPERTIES NOT YET ON THE MARKET.
| Discussion: No Comments »
Nation Sets Depressing Record: Housing Foreclosures Hit All-Time High
January 22nd, 2010 categories: Economic Recovery, Foreclosures, Housing Market, Real Estate News
The odds aren’t that small that you know someone who received a housing foreclosure filing in 2009. That’s because the United States saw more housing foreclosures in 2009 than it has in any other year.
That’s a rather depressing record. And the odds are good that 2010 will see a high number of housing foreclosures, too. The economy isn’t improving fast enough and unemployment isn’t falling. That combination leads to a growing number of homeowners struggling to make their once-affordable mortgage payments.
According to foreclosure data firm RealtyTrac, a record 2.82 million U.S. residential properties received at least one foreclosure filing in 2009. The report also showed that one in 45 housing units received a foreclosure filing during the year. That’s equal to 2.21 percent of all U.S. housing units, up from 1.84 percent in 2008 and 1.03 percent in 2007.
The news was especially dismal in our home state of Illinois. According to RealtyTrac, a total of 131,132 Illinois properties received a foreclosure filing during the year. This means that Illinois ranked fourth in the number of filings. The state saw 32 percent more foreclosure filings last year than it did in 2008.
According to a story in the Chicago Sun-Times, the number of housing foreclosure filings in the Chicago area last year hit 119,662, up 33 percent from 2008. One in every 31 homes in the Chicago area received a foreclosure filing in 2009, according to RealtyTrac.
If you’re having difficulty making your mortgage payments, don’t hesitate; immediately call your mortgage lender. Remember, the federal government, as part of its Home Affordable Modification Program, is offering lenders and banks financial incentives to lower the monthly mortgage payments of struggling homeowners.
Tell your lender that you can no longer afford your mortgage payments. Your lender might be willing to lower your loan’s interest rate, reduce its principal balance or restructure its terms, all efforts that will lower your monthly payment and, hopefully, keep you from losing your home to foreclosure.
PLEASE CLICK HERE TO VIEW PROPERTIES NOT YET ON THE MARKET.
| Discussion: 1 Comment »
