The National Association of Realtors Study

The National Association of Realtors does a study every year on people who bought or sold real estate and below are some of stats generated from that study.


Characteristics of home buyers
41% of recent home buyers were first time buyers
The typical first time home buyer was 30 years old, while the typical repeat buyer was 47.
The 2007 median household income of buyers was $74,900. The median income was $60,600 among first time buyers and $88,200 among repeat buyers.
About ¼ of first time buyers identified their race as white.
20% of recent home buyers were single females, and 10% were single males.
For 2/3 of home buyers, the primary reason for the recent home purchase was the desire to own a home.

Characteristics of homes purchased
New home purchases were 21% of all recent home purchases, down from 23% a year ago
The typical home purchased was 1825 square feet.
78% of home buyers purchased a detached single family home
When considering the purchase of a home, commuting costs were considered very or somewhat important by 80% of buyers.

The home search process
For 1/3 home buyers, the first step was looking online for properties.
87% of all home buyers and 94% of buyers aged 25 to 44 years used the internet to search for homes.
Real estate agents were viewed as a very useful information source by 81% of buyers who used an agent in the home search process.
The typical home buyer searched for 10 weeks and viewed 10 homes.
6% of buyers purchased a home in foreclosure.

Home buying and real estate professionals
81% of buyers purchased their home through a real estate agent or broker. Among those who purchased a new home, this percentage increased to 54% from 50% last year.
43% of buyers found their agent through a referral from a friend or family member.
70% of buyers would definitely use their real estate agent again or recommend the same agent to others.

Financing the home purchase
93% of home buyers financed their recent home purchase
The percentage of first time home buyers who financed 100% of the purchase price with a mortgage dropped to 34% from 45% last year.
46% of home buyers reported they have made some sacrifices such as reducing spending on luxury items, entertainment, or clothing in order to qualify for a mortgage
25% of first time buyers reported that the mortgage application and approval process was somewhat more difficult than they expected, and 10% reported it was much more difficult than expected.

Home sellers and their selling experience
Slightly over half of home sellers traded up to a larger and higher priced home and slightly more than one fifth traded down to a smaller and less expensive home.
84% of sellers were assisted by a real estate agent when selling their home
Recent sellers typically sold their homes for 96% of the listing price, and 60% reported they reduced the asking price at least once.
42% of sellers offered incentives to attract buyers, most often assistance with closing costs and home warranty policies.

Home selling and real estate professionals
38% of sellers who used a real estate agent found their agents through a referral from friends or family, and 26% used the agents they worked with previously to buy or sell a home.
90% of sellers reported that their home was listed or advertised on the internet.
Among recent sellers who used an agent, 85% reported they would definitely (65%) or probably (20%) use that real estate agent again or recommend the agent to others.

We are going to be movie stars!

NBC OPEN HOUSE is going to feature a makeover at our super listing - #1001 at 50 E Chestnut in the heart of Magnificent Mile in the Gold Coast, a spectacular 3900 sf home overlooking Quigley Seminary on the south and the Sofitel and park on the west. The elevator opens right into your own full floor home by way of a private foyer, so charming! But Susan Fredman Design Group is going to make it rock in a short TV segment! Our own Mega Agent Mary Vallender will be assisting as Tricia will be skiing in Vail the day of the Filming -- which is Tuesday February 2^nd.

How far would you go to find buyers for Chicago's priciest condos? How about Dubai?

We're in the news!

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Willing to go the extra miles for a sale
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Mary Umberger
House & Homes: On Real Estate

January 25 2009

How far would you go to find buyers for Chicago's priciest condos? How about Dubai?

The complete article can be viewed at:
http://www.chicagotribune.com/classified/realestate/advice/chi-0125-umberger-columnjan25,0,1473061.column

Terrific cocktail party with Signature Properties from Naples, Florida at TRUMP INTERNATIONAL CHICAGO

Here are a few pictures to share - January 15th we co-hosted a terrific cocktail party with Signature Properties from Naples, Florida at TRUMP INTERNATIONAL CHICAGO – over 130 people attended. The 20 degree below temperature was a reminder of why a place to escape to in Naples, Florida would be a very wonderful idea! Many prospects and several buyers attended and all commented on the terrific DVD which started with a chilly day in Chicago where the clients boarded a jet and ended on the same day, basking in sunshine and sipping a cocktail on the beach. The homes were also terrific – views, finishes, from $1million (Dunes) to $5m (Moraya Bay) - the ones directly on the water (Moraya Bay) are over 5000 sf!


View and reflection









Maxine Kroll, owner of Maxine Salon, husband architect Ron Bari, Tricia Fox Realtor Jean Hagerty









Liz Griffin and Craig and Erin Dunstan of Wheaten, buyers at the Moraya Bay Project










Frank DiJohn, entrepreneur/business owner and Mel Greenberg, entrepreneur, furniture business









Tricia Fox, and Glenn Griffin, Developer, Signature Properties, Naples, Florida












Jerry Nerad, hotel owner and original owner of parcel where development is and Ann Nerad and Patrick Griffin, Developer

Trump Cocktail Party and Launch of the Signature Properties Moraya Bay and Dunes Properties

I offered to update you post-event…We had our Trump Cocktail Party and Launch of the Signature Properties Moraya Bay and Dunes Properties from 5-8 last night.

Our event was wildly successful. We had about 135 people attend. We had videos on flat screens – one was the “usual” type of tour of the property in 3-D. Very nice. The other was extremely timely and creative. As you know, it was 20 below zero or so…the second DVD started with a couple waking up in Chicago (complete with shots of the river and the el) and looking at the freezing Tundra outside their condo window. They looked at each other and said “let’s go!” and they headed to their net-jet…meanwhile the lower right side of the screen said -17 degrees. 8:45 am. Then they took off on their shared jet, arrived and disembarked, headed to the beach and Moraya Bay Resort property and the lower right screen read: 3:45 pm. 85 degrees. And then..the usual and quite wonderful building tour/amenities, etc.

Very appropriate. Great timing! The whole room wanted to go to Naples.

People stayed late – even a half hour after the bar shut down. The views from the 17th floor at Trump were spectacular. We also toured interested parties to our resale listings at Trump. Great views at night! Second home properties can just as readily be in the city as in Naples, Florida! We will also be presenting the Signature Properties at the National Association of Realtors Second Home and Resort Convention in Naples, Florida March 29-31.

It’s been a very busy week despite the frigid below zero temperatures.

It’s been a very busy week despite the frigid below zero temperatures. Wednesday we filmed acclaimed designer Susan Fredman’s luxurious home at the Pinnacle with NBC TV commentator Marion Brooks as part of a feature on today’s buyer and the importance of having your home in impeccable condition when selling. Susan is selling her home to take on yet another renovation project! Yesterday we had a successful party at the new Trump Chicago International Hotel. We provided an elegant setting to 130 clients who may have interest in second homes in Naples, Florida or downtown Chicago. The food, company and exchange of ideas was terrific. Warmed us all up on a Tundra evening.

Today we got several developers interested in co-sponsoring our up-and-coming trip to the Dubai Trade Show Feb 15-18. All that and lots of showings too. It is warmer in Iceland and Alaska than here today. Stay warm!

Article of interest, and one attached:

http://www.chicagotribune.com/classified/realestate/advice/chi-selling-home_chomes_0116jan16,0,7163130.story

While our market is primarily focused in downtown Chicago, we find the New York Manhattan market offers an interesting parallel...

Like Manhattan, if we focus on our specific Gold coast market of luxury buildings, the data is surprisingly similar. Furthermore, we predict that the pullout or slow down of some expected luxury product will positively affect the demand for luxury condos near Michigan Avenue. Second City? Maybe not. Maybe twin city.

The 4th Quarter 2008 Manhattan Market Overview was just released. Below you will find some highlights of this well-respected report:

Overview: At the close of the third quarter, there was significant turmoil in the financial markets and unprecedented intervention by federal government agencies. The bailout of Fannie Mae, Freddie Mac and insurance giant AIG, as well as the investor run on the money market Reserve Primary Fund and the bankruptcy of Lehman Brothers, marked a significant change in the Manhattan and US housing market. The contraction of credit continues to play a primary role in the current residental market.



There was a decline in price levels and the number of sales of re-sale apartments. Due to a surge in new development closing activity in the current quarter and a lull in activity in the prior year quarter, the number of new development closings and price levels rose over the period however these sales reflect the market 12-18 months ago. In contrast to the more modest trends of closed sales, contract activity in the current quarter was marked by a sharp decline in sales activity and price levels. A periodic sampling of sales contracts showed a decline of 35% to 75% compared to the same period last year. Current contract price levels show an average decline of 20% from August 2008.



Manhattan Market Highlights:

· Median sales price increased 5.9% to $900,000 over the prior year quarter result of $850,000.

· Re-sale median sales price fell 3.6% to $732,500 from $760,000 in the prior year quarter.

· New development median sales price increased 5% to $1,260,000 from $1,200,000 in the prior year quarter skewed by high-end closings.

· Number of sales fell 9.4% to 2,282 units, from 2,518 units in the prior year quarter.

· Number of re-sales fell 24.8% to 1,408 units, from 1,873 units in the prior year quarter.

· Number of new development sales increased 35.5% to 874 units, from 645 units in the prior year quarter caused by the combination of a lull in closing last year and a surge in closings this quarter.

Additional Manhattan statistics:

· Listing inventory increased 39.3% to 9,081 units from the prior year quarter total of 6,518 units.

· Days on market was 159 days this quarter, four weeks longer than the 131 days on market average in the same period last year.

· Listing discount was 7.3%, up from 2.7% in the same period last year.

Co-op Market:

· Median sales price of a co-op this quarter was $675,000, unchanged from last year at this time.

· Number of sales fell 23.4% to 985 units, from 1,286 units in the same period last year.

· Listing inventory levels for co-ops increased 52.2% to 3,808 units from the prior year quarter.

· Co-ops accounted for 43.2% of all sales and 41.9% of all listings this quarter.

Condo Market:

· Median sales price of a condo this quarter was $1,120,075, up 1.8% from the prior year quarter result of $1,100,000. Again, mostly due to new construction units that went to contract 12-18 months ago and just closed this past quarter.

· Number of sales increased 5.3% to 1,297 units, from 1,232 units in the same period last year.

· Listing inventory levels for condos increased 31.3% to 5,273 units from the prior year quarter.

· Condos accounted for 56.8% of all sales and 58.9% of all listings this quarter.

Luxury Market (upper 10% of all co-op and condo sales):

· Median sales price of a luxury apartment this quarter was $4,132,516, down 3.9% from the prior year quarter result of $4,300,000.

· Listing inventory increased 25.5% to 1,730 units from the same period last year and more than doubled from the second quarter. This is primarily due to layoffs in the financial sector.

· Days on market was 169 days, 52 days longer than the same period last year and marks the end of a two year period where luxury properties generally sold faster than the overall market.

Loft Market (co-op and condo sales):

· Average price per square foot declined 1.7% to $1,268 from the same period last year.

· The average size of a typical loft sale jumped 17% to 1,865 square feet compared to the prior year quarter, skewing the results for median and average sales price. The jump was caused by the surge in larger new development unit closings during the period.

So, what does all of this mean and how does it affect your re-sale?

· Most increases in sales prices are artificially skewed by recent closings of new, high-end sponsor condominiums (that went to contract a year or more ago when the market was stronger).

· Re-sale inventory is up dramatically. A lot of this is due to the fact that sponsors of new condominiums are paying higher commissions and giving unheard of incentives to induce agents to show their units before showing re-sale apartments.

· Inventory has increased dramatically. It is taking a lot more time, effort and marketing by agents to secure a sale.

How does this affect your rental?

· With more new condo inventory hitting the market, competitive pricing is very important. Tenants prefer new buildings with great amenities and are negotiating great deals.

· Condominium management companies are charging higher application fees.

· With all of the new competition, any incentives you can offer will help to ensure a quicker rental. Most landlords are now paying a portion of the brokerage fee, condominium application fees, offering free months rent or a combination of all of these.

What if you want to buy?

· Increased inventory, price reductions and other incentives present an unprecedented opportunity to get a great deal…if you have good credit, sufficient down-payment funds, and can qualify with today’s stricter lender guidelines.

In today’s challenging market, hiring an experienced team to help you secure a faster rental or sale is more important than ever. The Minnick Group can help you make important decisions:

• We have over 15 years of experience in every type of Manhattan market.
• We are in the top 1% of all agents Nationwide. We had a great year during 2008!
• We have abundant advertising and marketing funds at our disposal.
• We represent over $ 800 Million in U.S. and International properties.
• We advertise extensively internationally and have overseas broker-partners who refer many clients to us every month.
• If you are buying or renting, we can help you choose the right property and present the proper offer that reflects today’s marketplace.