Don't let the idea of seasonality in the market hold you back.
Now is a GREAT time to sell!
In Chicago's Gold Coast the fourth quarter boasts the highest median price, the 2nd highest number of units sold, and the 2nd highest price per square foot.
*Average over past 3 years
Wednesday, November 10, 2010
Tuesday, November 9, 2010
Aqua Wins Awards
Aqua was one of the big winners last week - receiving an Honor Award at the annual Design Excellence Awards gathering of the American Institute of Architects - the highest form of recognition in the "distinguished building category." Aqua was also named the world's best skyscraper in 2009 by the German-based building database Emporis.
Aqua has also been selected as one of five finalists for the 4th International Highrise Award. It is the only U.S. representative. The finalists were selected in Frankfurt/Main, Germany by an international jury of architects, engineers and property specialists. The other finalists are from Dubai, Tokyo, Bangkok, and Shanghai. The five finalists were selected for demonstrating "a positive trend that has the opportunity of exploring new building forms."
The 334-room hotel venture in Aqua has obtained a $66 million loan to finance the project and construction has started. The Radisson Blu, a new upscale brand run by Carlson Hotels Worldwide is scheduled to open next September - it is the first Raddison Blu Hotel in the U.S.
Aqua has also been selected as one of five finalists for the 4th International Highrise Award. It is the only U.S. representative. The finalists were selected in Frankfurt/Main, Germany by an international jury of architects, engineers and property specialists. The other finalists are from Dubai, Tokyo, Bangkok, and Shanghai. The five finalists were selected for demonstrating "a positive trend that has the opportunity of exploring new building forms."
The 334-room hotel venture in Aqua has obtained a $66 million loan to finance the project and construction has started. The Radisson Blu, a new upscale brand run by Carlson Hotels Worldwide is scheduled to open next September - it is the first Raddison Blu Hotel in the U.S.
Friday, November 5, 2010
Home Prices Stabilizing in Key Markets
Chicago's Loop is #3 Nationally!! Two of the top three are Chicago!
ZipRealty says in its third quarter report that homes in key markets all over the country are selling above the asking price.
The report shows that the spread between the sales-to-list price ratio lessened significantly in most markets, but high-end housing markets in many areas continued to offer great bargains for buyers.
The 10 hottest ZIP codes in the ZipRealty markets where the selling prices was greater than the asking price were:
1. Greater Grand Crossing – Chicago, Ill. (60619)
2. Oakland, Calif. (94603)
3. The Loop – Chicago, Ill. (60603)
ZipRealty says in its third quarter report that homes in key markets all over the country are selling above the asking price.
The report shows that the spread between the sales-to-list price ratio lessened significantly in most markets, but high-end housing markets in many areas continued to offer great bargains for buyers.
The 10 hottest ZIP codes in the ZipRealty markets where the selling prices was greater than the asking price were:
1. Greater Grand Crossing – Chicago, Ill. (60619)
2. Oakland, Calif. (94603)
3. The Loop – Chicago, Ill. (60603)
Thursday, November 4, 2010
Real Estate Revisited, Part 4
WHAT PLANNERS SEE
Regardless of whether home prices will stabilize or whether they'll fall further, many financial planners will be discussing expectations about home purchases and sales at client meetings. "The demand for housing has not gone away," says Jane King, president of Fairfield Financial Advisors in Wellesley, Mass. "People still want to own their own home or have a second home."
She adds that when a client wants to buy a home, her firm will model the purchase. "We'll show clients how buying the place will affect liquidity and the income they can expect in retirement."
The housing slump of the past few years has had a visible impact, though. "There's not as much euphoria among buyers as there was a few years ago," King explains. "They're more likely to offer a certain amount-what they think is a fair price-and then back off if the seller doesn't accept."
King recounts the story of a client negotiating to buy a second home now, from an estate. He offered $650,000; the seller wants $800,000. If the seller won't come down, she says her client will walk away from the deal. He doesn't think that there is a line of buyers who will be bidding against him, so the seller might reduce the asking price.
According to King, her clients who are looking to buy a home are not so worried about whether we've finally reached the absolute bottom in the housing market. "Buyers aren't concerned about prices going down more in the next year or two," she says. "They're in it for the long term, not to flip houses."
SELLER'S REMORSE
However, many home buyers are sellers too; they're moving up or down in the housing market. And not every would-be buyer is an eager seller.
Marc Freedman, who heads a financial planning firm in Peabody, Mass., says some of his clients are thinking about selling their house and downsizing. They might want to move into a retirement community, where they won't have to do as much home maintenance. However, a lot of them are reluctant to sell now because they don't think they'll get the price they want-they have a certain number in their heads as to what their houses are worth.
That number, unfortunately, might be based on what similar homes sold for in 2005 or 2006. Few sellers will get such a price now, so they're holding on to their present house. "Often, they don't realize how much it's costing them to stay there," Freedman says.
Those costs are not just the obvious ones, such as property tax and homeowner's insurance, according to Freedman. Clients also have maintenance costs, including landscaping and plowing. They may be paying a great deal for heating and electricity, especially if they're still living in the big house where they raised their kids. Freedman adds that some of his clients pay a great deal for expenses related to their home swimming pool, even though they might use it no more than three or four times a year."
Clients who are unwilling to sell might be greedy. In addition, they might be looking for an excuse not to pack up a house, Freedman says. "If clients are downsizing, they might be worried about fitting everything into a smaller home."
As Paul Gydosh Jr., managing director of Kensington Wealth Partners in Columbus, Ohio, points out, "Clients who want to sell one home and buy another have several options. They might wait to sell at a higher price, carry the costs of two homes (if they can afford it), rent their former home or sell it to their kids. The most common solution is to reduce their asking price, sell the old home and buy a new one."
Gydosh explores all the options with clients, helping them come to a conclusion. "We've seen instances where a home seller was frozen over a small gap between his asking price and the bid, and we pointed out how little a difference that would make in his net worth," he says.
In some Midwestern cities like Columbus, neither the housing boom nor the bust was as extreme as it was in other areas of the U. S. "Sellers here might not be so anchored to the price they believe their home is worth," Gydosh says. Therefore, they might not be as reluctant to lower their price to close a sale.
Even though sellers will likely have to accept a lower selling price, they could get a good price on the place they buy in today's market. Gydosh tells of a homeowner who sold his place for 10%-15% below the peak price and bought a house down the street for a 30% discount from the peak. "The new home has more square footage, and is also better suited for the wife's elderly mother to live with them."
Even outside the Midwest, there are areas where housing prices have held up relatively well. "Around here, home prices are down 5% to 15% from the peak," says Eleanore Szymanski, principal at EKS Associates, a financial planning firm in Princeton, N.J. "At today's levels, some clients are willing to sell-and they're able to. One $700,000 home sold in three weeks; the sale fell through because of mortgage problems. When the house went back on the market it sold again, in another three weeks."
As Szymanski's anecdote indicates, lenders' extreme caution may be jeopardizing home sales now. "They're putting loan applicants through the ringer," she says. "Clients who are thinking about selling their home expect prices to move up, probably within the next three to five years, which could happen once the banks loosen up a bit." A return to the days of mortgages-for-anyone may not be desirable, but the residential housing market might look a lot healthier if lenders were as reasonable about the loans they make as they seem to be about the properties they have to sell.
By Donald Jay Korn
Read Part 1 Part 2 Part 3
Regardless of whether home prices will stabilize or whether they'll fall further, many financial planners will be discussing expectations about home purchases and sales at client meetings. "The demand for housing has not gone away," says Jane King, president of Fairfield Financial Advisors in Wellesley, Mass. "People still want to own their own home or have a second home."
She adds that when a client wants to buy a home, her firm will model the purchase. "We'll show clients how buying the place will affect liquidity and the income they can expect in retirement."
The housing slump of the past few years has had a visible impact, though. "There's not as much euphoria among buyers as there was a few years ago," King explains. "They're more likely to offer a certain amount-what they think is a fair price-and then back off if the seller doesn't accept."
King recounts the story of a client negotiating to buy a second home now, from an estate. He offered $650,000; the seller wants $800,000. If the seller won't come down, she says her client will walk away from the deal. He doesn't think that there is a line of buyers who will be bidding against him, so the seller might reduce the asking price.
According to King, her clients who are looking to buy a home are not so worried about whether we've finally reached the absolute bottom in the housing market. "Buyers aren't concerned about prices going down more in the next year or two," she says. "They're in it for the long term, not to flip houses."
SELLER'S REMORSE
However, many home buyers are sellers too; they're moving up or down in the housing market. And not every would-be buyer is an eager seller.
Marc Freedman, who heads a financial planning firm in Peabody, Mass., says some of his clients are thinking about selling their house and downsizing. They might want to move into a retirement community, where they won't have to do as much home maintenance. However, a lot of them are reluctant to sell now because they don't think they'll get the price they want-they have a certain number in their heads as to what their houses are worth.
That number, unfortunately, might be based on what similar homes sold for in 2005 or 2006. Few sellers will get such a price now, so they're holding on to their present house. "Often, they don't realize how much it's costing them to stay there," Freedman says.
Those costs are not just the obvious ones, such as property tax and homeowner's insurance, according to Freedman. Clients also have maintenance costs, including landscaping and plowing. They may be paying a great deal for heating and electricity, especially if they're still living in the big house where they raised their kids. Freedman adds that some of his clients pay a great deal for expenses related to their home swimming pool, even though they might use it no more than three or four times a year."
Clients who are unwilling to sell might be greedy. In addition, they might be looking for an excuse not to pack up a house, Freedman says. "If clients are downsizing, they might be worried about fitting everything into a smaller home."
As Paul Gydosh Jr., managing director of Kensington Wealth Partners in Columbus, Ohio, points out, "Clients who want to sell one home and buy another have several options. They might wait to sell at a higher price, carry the costs of two homes (if they can afford it), rent their former home or sell it to their kids. The most common solution is to reduce their asking price, sell the old home and buy a new one."
Gydosh explores all the options with clients, helping them come to a conclusion. "We've seen instances where a home seller was frozen over a small gap between his asking price and the bid, and we pointed out how little a difference that would make in his net worth," he says.
In some Midwestern cities like Columbus, neither the housing boom nor the bust was as extreme as it was in other areas of the U. S. "Sellers here might not be so anchored to the price they believe their home is worth," Gydosh says. Therefore, they might not be as reluctant to lower their price to close a sale.
Even though sellers will likely have to accept a lower selling price, they could get a good price on the place they buy in today's market. Gydosh tells of a homeowner who sold his place for 10%-15% below the peak price and bought a house down the street for a 30% discount from the peak. "The new home has more square footage, and is also better suited for the wife's elderly mother to live with them."
Even outside the Midwest, there are areas where housing prices have held up relatively well. "Around here, home prices are down 5% to 15% from the peak," says Eleanore Szymanski, principal at EKS Associates, a financial planning firm in Princeton, N.J. "At today's levels, some clients are willing to sell-and they're able to. One $700,000 home sold in three weeks; the sale fell through because of mortgage problems. When the house went back on the market it sold again, in another three weeks."
As Szymanski's anecdote indicates, lenders' extreme caution may be jeopardizing home sales now. "They're putting loan applicants through the ringer," she says. "Clients who are thinking about selling their home expect prices to move up, probably within the next three to five years, which could happen once the banks loosen up a bit." A return to the days of mortgages-for-anyone may not be desirable, but the residential housing market might look a lot healthier if lenders were as reasonable about the loans they make as they seem to be about the properties they have to sell.
By Donald Jay Korn
Read Part 1 Part 2 Part 3
Wednesday, November 3, 2010
Real Estate Revisited, Part 3
LOCATION, LOCATION
Molony's comments bring up a crucial point about housing prices. National data may be interesting, but it's not very helpful for planners advising clients who want to buy or sell a house on a specific lot. Lately housing price movements have varied enormously from place to place. The chart, "Regional Differences," on page 76, shows NAR's regional data on median sales prices of existing single-family homes.
As these numbers show, price declines in the western states over the last two years have been far steeper than in other regions of the United States, reflecting the huge boom in certain markets in previous years. Prices in the West plummeted 37% from 2007 through 2009. In many areas of the South and Midwest, however, prices did not go through a boom and bust in the early years of this century, so they may already be at or near the bottom of this cycle. Prices in the South fell 13.3% over the last two years, while prices in the Midwest were only down 11.5%
The shadow inventory threat will be most ominous in the areas with the greatest portion of distressed homeowners. RealtyTrac reports that California and Florida alone accounted for about 37% of all national foreclosure filings in August 2010. In areas with less speculative building and fewer distressed homeowners, the shadow cast by future housing supply might not be as long.
BALANCING ACT
The question is whether today's buyers should wait, for fear that shadow inventory will drag down prices even further in the next few years. Yun points to a hopeful indicator on the supply side.
"One aspect of the shadow inventory that people aren't talking about is the lack of inventory of newly constructed homes," he says. In a normal year, Yun explains, there is always a flow of new homes hitting the market that needs to be absorbed. But in today's market, the low level of housing starts has cut off the normal flow of new home inventory. "So the low number of new homes will help offset shadow inventory, providing some help in the overall inventory picture."
Luschini concurs that weak housing starts are good news for home prices. "We don't need more inventory now."
What's more, it may be unrealistic to expect millions of homes will be dumped on the market in the next few years, driving down prices. Lenders who find themselves overstocked with real estate-owned (REO) property are being cautious. "On the front end, seriously delinquent loans are rolling into foreclosure at an unusually slow rate," Saccacio says. "On the back-end, the dammed-up inventory of properties already in foreclosure is moving to REO in a steady stream rather than a flood-presumably to prevent further erosion of home prices."
Luschini also sees evidence of efforts to keep housing supply and demand on an even keel. "Many homes are owned by banks, ready to come back on the market," he says. "Banks don't want to be in the business of owning homes. At the same time, they are reluctant to bring too many homes to the market, for fear of exacerbating weakness in home prices."
Thus lenders may be both reluctant home owners and reluctant home sellers. "We see a tug-of-war," Luschini explains. "As the economic recovery continues, more homes will come to market from banks and other owners. This increased supply will keep prices down." On the other end of the rope, when excess supply threatens to pull prices down, banks may rein in the supply of foreclosed properties so that prices can firm up. Arnott agrees that such activity is "clearly going on" and will put a damper on housing prices.
Luschini concludes that home prices are likely to stay "flattish" for several years. The inventory will find its way onto the market, and there will be some continued softness. "Home prices might drop 5% or so, nationwide, but the price drops won't be anything like we've seen in the past few years," he predicts, adding that because the housing market is highly regionalized, some areas of the country may see higher prices while others suffer steeper drops.
What might put housing prices on solid footing? "The answer to price stability is more jobs," Luschini says "When more people are working, more people will be able to commit to service the debt that comes with home ownership." With unemployment still well over 9%, it may be awhile before housing prices can resume an upward surge. In the meantime, the national housing price indexes mighty not stray far from current levels as lenders expand and contract the supply of REO properties coming onto the market.
How might a foreclosure moratorium affect housing prices? In the short term, it could stem further housing price declines because it would preclude new inventory from hitting the market, according to Luschini.
In the longer term, supply will surge once the moratorium is lifted, and prices will fall, says Feifei Li, director of research at Research Affiliates. "The moratorium won't make troubled homes disappear. They will hit the market eventually and cause a big spike in supply, driving prices down further."
By Donald Jay Korn
Catch the conclusion in Part 4 tomorrow!
Miss Part 1 or Part 2? Read them now!
Molony's comments bring up a crucial point about housing prices. National data may be interesting, but it's not very helpful for planners advising clients who want to buy or sell a house on a specific lot. Lately housing price movements have varied enormously from place to place. The chart, "Regional Differences," on page 76, shows NAR's regional data on median sales prices of existing single-family homes.
As these numbers show, price declines in the western states over the last two years have been far steeper than in other regions of the United States, reflecting the huge boom in certain markets in previous years. Prices in the West plummeted 37% from 2007 through 2009. In many areas of the South and Midwest, however, prices did not go through a boom and bust in the early years of this century, so they may already be at or near the bottom of this cycle. Prices in the South fell 13.3% over the last two years, while prices in the Midwest were only down 11.5%
The shadow inventory threat will be most ominous in the areas with the greatest portion of distressed homeowners. RealtyTrac reports that California and Florida alone accounted for about 37% of all national foreclosure filings in August 2010. In areas with less speculative building and fewer distressed homeowners, the shadow cast by future housing supply might not be as long.
BALANCING ACT
The question is whether today's buyers should wait, for fear that shadow inventory will drag down prices even further in the next few years. Yun points to a hopeful indicator on the supply side.
"One aspect of the shadow inventory that people aren't talking about is the lack of inventory of newly constructed homes," he says. In a normal year, Yun explains, there is always a flow of new homes hitting the market that needs to be absorbed. But in today's market, the low level of housing starts has cut off the normal flow of new home inventory. "So the low number of new homes will help offset shadow inventory, providing some help in the overall inventory picture."
Luschini concurs that weak housing starts are good news for home prices. "We don't need more inventory now."
What's more, it may be unrealistic to expect millions of homes will be dumped on the market in the next few years, driving down prices. Lenders who find themselves overstocked with real estate-owned (REO) property are being cautious. "On the front end, seriously delinquent loans are rolling into foreclosure at an unusually slow rate," Saccacio says. "On the back-end, the dammed-up inventory of properties already in foreclosure is moving to REO in a steady stream rather than a flood-presumably to prevent further erosion of home prices."
Luschini also sees evidence of efforts to keep housing supply and demand on an even keel. "Many homes are owned by banks, ready to come back on the market," he says. "Banks don't want to be in the business of owning homes. At the same time, they are reluctant to bring too many homes to the market, for fear of exacerbating weakness in home prices."
Thus lenders may be both reluctant home owners and reluctant home sellers. "We see a tug-of-war," Luschini explains. "As the economic recovery continues, more homes will come to market from banks and other owners. This increased supply will keep prices down." On the other end of the rope, when excess supply threatens to pull prices down, banks may rein in the supply of foreclosed properties so that prices can firm up. Arnott agrees that such activity is "clearly going on" and will put a damper on housing prices.
Luschini concludes that home prices are likely to stay "flattish" for several years. The inventory will find its way onto the market, and there will be some continued softness. "Home prices might drop 5% or so, nationwide, but the price drops won't be anything like we've seen in the past few years," he predicts, adding that because the housing market is highly regionalized, some areas of the country may see higher prices while others suffer steeper drops.
What might put housing prices on solid footing? "The answer to price stability is more jobs," Luschini says "When more people are working, more people will be able to commit to service the debt that comes with home ownership." With unemployment still well over 9%, it may be awhile before housing prices can resume an upward surge. In the meantime, the national housing price indexes mighty not stray far from current levels as lenders expand and contract the supply of REO properties coming onto the market.
How might a foreclosure moratorium affect housing prices? In the short term, it could stem further housing price declines because it would preclude new inventory from hitting the market, according to Luschini.
In the longer term, supply will surge once the moratorium is lifted, and prices will fall, says Feifei Li, director of research at Research Affiliates. "The moratorium won't make troubled homes disappear. They will hit the market eventually and cause a big spike in supply, driving prices down further."
By Donald Jay Korn
Catch the conclusion in Part 4 tomorrow!
Miss Part 1 or Part 2? Read them now!
Tuesday, November 2, 2010
Real Estate Revisited, Part 2
ONLY THE SHADOW KNOWS
Not everyone is convinced that statistics tell the whole story, though. A scan of press reports produced more skeptics than adherents of the idea that home prices have reached a bottom. A recent Bloomberg article, for example, found only two votes for near-term stability, while five other experts saw prices falling by as much as 15% over the next few years.
Why the doom and gloom amid encouraging data? One reason is the threat of a "double-dip" recession. "We think a second round is reasonably likely," says Rob Arnott, chairman of Research Affiliates in Newport Beach, Calif. According to Arnott, just the threat of a tax boost could cause affluent consumers to spend less and turn a fragile recovery into a renewed recession. That would be troublesome for housing prices, which could fall another 10%-20%. "We don't see a bottom in housing prices until 2012," he says.
Arnott also mentions the huge "overhang" of houses that are in or near foreclosure as a factor that will increase the supply of homes on the market and thus put a lid on prices. This is the so-called shadow inventory of properties that are not on the market now but soon may be on sale. Some of those properties are held by banks after a foreclosure; others still belong to homeowners in some pre-foreclosure stage.
By some estimates, this shadow inventory is as large as seven million homes, which could go on the market in the next few years. Today, there are about four million existing homes for sale in the United States. If seven million homes are added, more than doubling for-sale listings, the surplus of sellers over buyers could drive down home prices even further, bearish forecasters predict.
WHERE CREDIT WAS DUE
Besides the shadow inventory, bears on housing prices point to another reason for doubting the staying power of recent home price stability-the expiration of housing tax credits. Throughout 2009 and into the second quarter of 2010, certain home buyers qualified for federal income tax savings of up to $8,000. According to NAR, an estimated 4.3 million home buyers were eligible to use the tax credits, including one million who might not have bought without the tax break.
If those million home buyers had kept their checkbooks closed, leaving an extra million homes on the market, prices probably would not have stabilized in 2009-2010. Now that the tax credits have expired, with no apparent renewal in sight, will flagging demand lead to a resumption of home price declines? "We see some footing in housing prices, but we're not far enough from the housing tax credits to see how solid the bottom is," Luschini says.
Perhaps the lack of tax credits won't cause a double-dip in home prices. "Our forecast for 2010 is for home prices to be essentially unchanged nationally from 2009," says Walter Molony, a spokesman for NAR. "Unless home sales remain depressed for more than a few months, we don't expect an impact on prices. Prices have overcorrected in some areas; homes are selling for less than replacement construction costs in many markets."
By: Donald Jay Korn
Check in tomorrow for Part 3!
Missed Part 1? Read it here?
Not everyone is convinced that statistics tell the whole story, though. A scan of press reports produced more skeptics than adherents of the idea that home prices have reached a bottom. A recent Bloomberg article, for example, found only two votes for near-term stability, while five other experts saw prices falling by as much as 15% over the next few years.
Why the doom and gloom amid encouraging data? One reason is the threat of a "double-dip" recession. "We think a second round is reasonably likely," says Rob Arnott, chairman of Research Affiliates in Newport Beach, Calif. According to Arnott, just the threat of a tax boost could cause affluent consumers to spend less and turn a fragile recovery into a renewed recession. That would be troublesome for housing prices, which could fall another 10%-20%. "We don't see a bottom in housing prices until 2012," he says.
Arnott also mentions the huge "overhang" of houses that are in or near foreclosure as a factor that will increase the supply of homes on the market and thus put a lid on prices. This is the so-called shadow inventory of properties that are not on the market now but soon may be on sale. Some of those properties are held by banks after a foreclosure; others still belong to homeowners in some pre-foreclosure stage.
By some estimates, this shadow inventory is as large as seven million homes, which could go on the market in the next few years. Today, there are about four million existing homes for sale in the United States. If seven million homes are added, more than doubling for-sale listings, the surplus of sellers over buyers could drive down home prices even further, bearish forecasters predict.
WHERE CREDIT WAS DUE
Besides the shadow inventory, bears on housing prices point to another reason for doubting the staying power of recent home price stability-the expiration of housing tax credits. Throughout 2009 and into the second quarter of 2010, certain home buyers qualified for federal income tax savings of up to $8,000. According to NAR, an estimated 4.3 million home buyers were eligible to use the tax credits, including one million who might not have bought without the tax break.
If those million home buyers had kept their checkbooks closed, leaving an extra million homes on the market, prices probably would not have stabilized in 2009-2010. Now that the tax credits have expired, with no apparent renewal in sight, will flagging demand lead to a resumption of home price declines? "We see some footing in housing prices, but we're not far enough from the housing tax credits to see how solid the bottom is," Luschini says.
Perhaps the lack of tax credits won't cause a double-dip in home prices. "Our forecast for 2010 is for home prices to be essentially unchanged nationally from 2009," says Walter Molony, a spokesman for NAR. "Unless home sales remain depressed for more than a few months, we don't expect an impact on prices. Prices have overcorrected in some areas; homes are selling for less than replacement construction costs in many markets."
By: Donald Jay Korn
Check in tomorrow for Part 3!
Missed Part 1? Read it here?
Monday, November 1, 2010
Real Estate Revisited
Real Estate Revisited
By Donald Jay Korn
Have real estate prices finally hit bottom? As far as home prices go, the data says they have. Prices are up across the board in 2010 compared to 2009. Many observers are doubtful, however, predicting further slippage. The pessimists point to the possibility of a double-dip recession, the expiration of housing tax credits and an increase in shadow inventory, as more troubled properties flood the market.
In fact, that inventory may be coming out of the shadows. There were more foreclosures this summer than in any three-month period since the housing bust began in 2006, according to RealtyTrac, a foreclosure listing service. Banks seized 288,345 properties in July through September, and are on pace to foreclose on 1.2 million homes by the end of 2010.
But the pipeline may slow due to a coordinated probe by the top prosecutors in all 50 states into improper foreclosures by the nation's largest loan servicers. The investigation comes after lawyers accused mortgage lenders of "robo-signing," or signing off on foreclosure documents without reviewing them as required by law.
Although the prosecutors have not called for mortgage lenders to freeze all foreclosures, mortgage lenders are taking various measures to ensure that their foreclosures are legal. As we went to press, Bank of America had halted foreclosure sales in all 50 states for a few weeks in October, and GMAC Mortgage and JPMorgan Chase stopped them in the 23 states that require court approval to complete foreclosures.
While the implications of these developments play out in the short term, it is becoming clear that lenders who have become major property owners, by default, may be manipulating the current housing cycle. "There are clear indications that the clogged foreclosure pipeline is being carefully managed on both ends by lenders and servicers," says James Saccacio, CEO of RealtyTrac in Irvine, Calif. In the longer term, such management might promote price stability (or stagnation, depending on one's point of view), both short- and long-term.
THE GOOD NEWS
According to the National Association of Realtors (NAR), the median sales price of existing family homes peaked in 2006 at $221,900. In 2009, that median price was $172,100-a drop of more than 22%. In the first seven months of 2010, the monthly medians ranged from $163,800 to $183,500, with the latest month (July) at $183,400. From July 2009 to July 2010, the median price was up 0.9%. Home prices in two out of four regions were up less than 5%, year over year, while the other two were down no more than 3%. Anyone looking for a statistical example of stability has found it.
Further evidence that housing prices have found a bottom comes from the Case Shiller 20-City Home Price Index. In the latest month to report-July 2010-prices were up 3.2% from a year earlier. "Ten of the 20 cities saw year-over-year gains and only one (Las Vegas) made a new bottom," says David Blitzer, chairman of the index committee at Standard & Poor's. "Judging from the recent behavior of the housing market, stable prices seem more likely" than a return to the lofty levels of 2005-2006.
Some industry observers are encouraged by these statistics. "Home values have shown stabilizing trends over the past year," says Lawrence Yun, the chief economist at NAR. He credits home-buyer tax credits for stimulating sales and bolstering prices.
Yun adds that houses have become more affordable in today's market. According to the National Association of Home Builders/Wells Fargo Housing Opportunity Index, 72.3% of the homes sold in the second quarter of 2010 were affordable to families earning the national median income of $64,400. That's just a shade below the historic peak of 72.5%, in the first quarter of 2009, and far above the level of three years ago, when less than half of the families earning the median income could afford the median-priced home.
"Residential housing may be quite inexpensive now, with prices down and the low cost of servicing debt," says Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia. "The huge number of homes for sale just adds to the appeal of a buyer's market," he says.
Besides lower home prices, record low interest rates are helping to make housing more affordable. In mid-October, rates on 30-year fixed mortgages remained below 5%, the lowest level since May of 2009, when 30-year rates settled at 4.81%.
By Donald Jay Korn
Have real estate prices finally hit bottom? As far as home prices go, the data says they have. Prices are up across the board in 2010 compared to 2009. Many observers are doubtful, however, predicting further slippage. The pessimists point to the possibility of a double-dip recession, the expiration of housing tax credits and an increase in shadow inventory, as more troubled properties flood the market.
In fact, that inventory may be coming out of the shadows. There were more foreclosures this summer than in any three-month period since the housing bust began in 2006, according to RealtyTrac, a foreclosure listing service. Banks seized 288,345 properties in July through September, and are on pace to foreclose on 1.2 million homes by the end of 2010.
But the pipeline may slow due to a coordinated probe by the top prosecutors in all 50 states into improper foreclosures by the nation's largest loan servicers. The investigation comes after lawyers accused mortgage lenders of "robo-signing," or signing off on foreclosure documents without reviewing them as required by law.
Although the prosecutors have not called for mortgage lenders to freeze all foreclosures, mortgage lenders are taking various measures to ensure that their foreclosures are legal. As we went to press, Bank of America had halted foreclosure sales in all 50 states for a few weeks in October, and GMAC Mortgage and JPMorgan Chase stopped them in the 23 states that require court approval to complete foreclosures.
While the implications of these developments play out in the short term, it is becoming clear that lenders who have become major property owners, by default, may be manipulating the current housing cycle. "There are clear indications that the clogged foreclosure pipeline is being carefully managed on both ends by lenders and servicers," says James Saccacio, CEO of RealtyTrac in Irvine, Calif. In the longer term, such management might promote price stability (or stagnation, depending on one's point of view), both short- and long-term.
THE GOOD NEWS
According to the National Association of Realtors (NAR), the median sales price of existing family homes peaked in 2006 at $221,900. In 2009, that median price was $172,100-a drop of more than 22%. In the first seven months of 2010, the monthly medians ranged from $163,800 to $183,500, with the latest month (July) at $183,400. From July 2009 to July 2010, the median price was up 0.9%. Home prices in two out of four regions were up less than 5%, year over year, while the other two were down no more than 3%. Anyone looking for a statistical example of stability has found it.
Further evidence that housing prices have found a bottom comes from the Case Shiller 20-City Home Price Index. In the latest month to report-July 2010-prices were up 3.2% from a year earlier. "Ten of the 20 cities saw year-over-year gains and only one (Las Vegas) made a new bottom," says David Blitzer, chairman of the index committee at Standard & Poor's. "Judging from the recent behavior of the housing market, stable prices seem more likely" than a return to the lofty levels of 2005-2006.
Some industry observers are encouraged by these statistics. "Home values have shown stabilizing trends over the past year," says Lawrence Yun, the chief economist at NAR. He credits home-buyer tax credits for stimulating sales and bolstering prices.
Yun adds that houses have become more affordable in today's market. According to the National Association of Home Builders/Wells Fargo Housing Opportunity Index, 72.3% of the homes sold in the second quarter of 2010 were affordable to families earning the national median income of $64,400. That's just a shade below the historic peak of 72.5%, in the first quarter of 2009, and far above the level of three years ago, when less than half of the families earning the median income could afford the median-priced home.
"Residential housing may be quite inexpensive now, with prices down and the low cost of servicing debt," says Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia. "The huge number of homes for sale just adds to the appeal of a buyer's market," he says.
Besides lower home prices, record low interest rates are helping to make housing more affordable. In mid-October, rates on 30-year fixed mortgages remained below 5%, the lowest level since May of 2009, when 30-year rates settled at 4.81%.
Thursday, September 23, 2010
Condo Deposits Must Be Returned Upon Request Judge Rules
Manhattan mega-developers are reeling after a federal judge ruled that complexes with more than 100 units must refund buyers' formerly non-refundable deposits upon request.
Manhattan Federal District Court P. Kevin Castel ruled Wednesday that developer Related Companies must pay back a $510,000 deposit — plus interest — to buyers wishing to back out of the deal, based on a slightly obscure 1968 law, the New York Times reported. Castel said an affiliate of Related Companies had failed to comply with a little-known federal law known as the Interstate Land Sales Full Disclosure Act.
The decision could allow buyers in any condo buildings with more than 100 units to get their deposits back, according to the Times.
"It's a free ticket out," one real estate lawyer told the newspaper.
Lawyers for Related told the Times they planned to appeal the decision.
By Nina Mandell, DNAinfo.com
Manhattan Federal District Court P. Kevin Castel ruled Wednesday that developer Related Companies must pay back a $510,000 deposit — plus interest — to buyers wishing to back out of the deal, based on a slightly obscure 1968 law, the New York Times reported. Castel said an affiliate of Related Companies had failed to comply with a little-known federal law known as the Interstate Land Sales Full Disclosure Act.
The decision could allow buyers in any condo buildings with more than 100 units to get their deposits back, according to the Times.
"It's a free ticket out," one real estate lawyer told the newspaper.
Lawyers for Related told the Times they planned to appeal the decision.
By Nina Mandell, DNAinfo.com
Wednesday, August 25, 2010
Tuesday, August 24, 2010
Chicago Home Sales
So - several of my clients sent me this article and asked for my comments. I thought I would share this with you too! If a few ask, perhaps more would like to know....
Here you go: Averages are meaningless in our specific luxury market - we are not in the slightest changed by the drop in the $8k tax credit as none of our buyers are in that market. As always, the important information to study for your particular sale or purchase is- building by building and then tier by tier within that building. Nothing else is relevant.
As an example, most units at Trump and Heritage are up 20% over 6 months ago if they are in the prime tiers. In the not prime tiers, it is another story. In some of our other buildings, sales prices are lower by as much as 20%, but there are usually additional reasons - assessments got too high, a special need or special assessment got bad word of mouth going, too many desperate sellers...reasons. But proper marketing and patience gets the job done.
Building by building, tier by tier.
Our Fox Group sales numbers this year are excellent. Out of 5,000 Keller Williams Groups nation-wide, we performed #3. Why? Luxury market, direct marketing techniques, not relying on the old way of doing business. Half of our sales are "on us", meaning we find the buyers through direct means. A lot of luxury buyers are interested in buying "up", enjoying a finer home in a somewhat uncertain economy. While our year would be LOTS better if interested buyers could sell their own homes (Domino Effect), we have some who either have successfully sold or who are buying without selling first.
Person by person, building by building, tier by tier.
We are bullish on our market segment and our numbers show it! Do sellers need patience? Yes. Are lowest price units selling first? Yes again. In my 20 years in real estate, I have never seen a better chance to buy. And if that means savvy, informed sellers may take a little less, then that dictates that they should do that - and buy into the best market they are likely to see in their lifetimes. Sell for less, buy for less still. And buy well so you can appreciate value increase over time.
Basics. Location, location, location? NO! Value, Value, Value.
Here you go: Averages are meaningless in our specific luxury market - we are not in the slightest changed by the drop in the $8k tax credit as none of our buyers are in that market. As always, the important information to study for your particular sale or purchase is- building by building and then tier by tier within that building. Nothing else is relevant.
As an example, most units at Trump and Heritage are up 20% over 6 months ago if they are in the prime tiers. In the not prime tiers, it is another story. In some of our other buildings, sales prices are lower by as much as 20%, but there are usually additional reasons - assessments got too high, a special need or special assessment got bad word of mouth going, too many desperate sellers...reasons. But proper marketing and patience gets the job done.
Building by building, tier by tier.
Our Fox Group sales numbers this year are excellent. Out of 5,000 Keller Williams Groups nation-wide, we performed #3. Why? Luxury market, direct marketing techniques, not relying on the old way of doing business. Half of our sales are "on us", meaning we find the buyers through direct means. A lot of luxury buyers are interested in buying "up", enjoying a finer home in a somewhat uncertain economy. While our year would be LOTS better if interested buyers could sell their own homes (Domino Effect), we have some who either have successfully sold or who are buying without selling first.
Person by person, building by building, tier by tier.
We are bullish on our market segment and our numbers show it! Do sellers need patience? Yes. Are lowest price units selling first? Yes again. In my 20 years in real estate, I have never seen a better chance to buy. And if that means savvy, informed sellers may take a little less, then that dictates that they should do that - and buy into the best market they are likely to see in their lifetimes. Sell for less, buy for less still. And buy well so you can appreciate value increase over time.
Basics. Location, location, location? NO! Value, Value, Value.
Wednesday, August 11, 2010
Tricia Fox Group Sells Chicago!
The Tricia Fox Group is the 7th highest producing group in Keller Williams for the year to date (January to July)! We have had over $48 million in sales this year.
Local expertise, global reach, and experienced negotiators thinking outside the box. See what the Tricia Fox Group can do for you.
Local expertise, global reach, and experienced negotiators thinking outside the box. See what the Tricia Fox Group can do for you.
Thursday, July 29, 2010
What's Driving the Sale of Downtown Luxury Condos?
By Dennis Rodkin, Chicago Magazine
In the first few months of 2010, as some local developers slashed prices or staged auctions on their newly built condominiums, a small segment at the upper end of the condo market flourished. As Gail Lissner of Appraisal Research Counselors notes, “There are always wealthy people with the ability to buy.” The big difference lately is that those well-heeled folks have been shelling out princely sums to buy luxurious new condos in downtown high-rises. “These are not speculators buying cookie-cutter condos,” says Lissner. “By and large, they are buying to live in these really high-end, unique places.”
Consider these numbers: From the beginning of the year until the middle of May, about 40 downtown condos have been sold for $2 million or more—and most of those condos were in buildings that opened in the last two years. (Some sales may have not yet appeared in public records.) They ranged from an $8.182-million sale at the Elysian—the 60-story tower at 11 East Walton Street designed by Lucien Lagrange—to a three-bedroom unit that went for a little more than $2.24 million at Aqua, the much-praised skyscraper at 225 North Columbus Drive that Jeanne Gang designed for Magellan Development. (The Elysian sale was the highest price paid for a Chicago condo since November 2006, when a 61st-floor unit at the Park Tower—at 800 North Michigan Avenue—went for $8.275 million.)
What’s driving the sales? To update an old real-estate adage: timing, timing, timing. Many of these new elite homeowners made their decision to buy several years ago, while buildings were under construction or still in the planning stage—and before the recession punctured the real-estate boom. With those condo towers now ready for residents, the folks who agreed years ago to buy are finally inking the deals.
That’s generally what’s been happening at the Elysian, according to Caryl Dillon, who was the tower’s sales agent. Since January 1st, at least 16 buyers there closed on condos priced at $2 million or more (in addition to the $8.182-million sale already mentioned, one condo went for $7.25 million and another for $6.9 million). That’s on top of a first round of December 2009 closings at $2 million and up. Meanwhile, at The Legacy (which recently opened at 60 East Monroe Street), three units priced at more than $2 million were among the first closings in the building—and usually the earliest buyers sign off on the earliest closings. (Since condos on a building’s bottom floors are often finished first, some lower-level, lower-priced units bought during construction can also be among the earliest closings.)
Buyers who signed contracts before the bust could have opted to cancel their contracts when the economy soured—as did numerous buyers of medium-priced homes. But “10 percent [the standard deposit on a condo] is a lot to walk away from” on a multimillion-dollar sale, Lissner says. Still, as she suggests, it’s also likely that for many of these rich buyers “their lifestyle hasn’t changed in the downturn.”
Janet Owen, a Sudler Sotheby’s International agent who works exclusively in the luxury market, points out that many rich people have not had to worry about the tight mortgage-financing climate that has contributed to the drag on the larger real-estate market. Mortgage lenders have been requiring bigger down payments, higher credit scores, and more detailed documentation of financial histories from average buyers. “These aren’t issues [wealthy potential homeowners] have to think about,” says Owen. On top of this, she notes, “their buying had nothing to do with the $8,000 federal tax credit.”
That is especially true of well-to-do buyers who made their purchase decisions recently. In early May, someone paid $2.3 million for a previously owned condo on the 51st floor of the Trump International Hotel & Tower (that building, at 401 North Wabash Avenue, opened in 2008). Another buyer spent $3.45 million in April for a 54th–floor condo at 55 East Erie that an investor had held on to since 2003. These new purchasers “are almost always cash buyers,” says Tere Proctor, who was the director of sales at Trump before returning to agency work (at Koenig & Strey Real Living). “They see the value in buildings like Trump and the Elysian, and they’re banking on knowing that whenever the market gets better, they will be holding valuable real estate.”
Read the full article and see building highlights here.
In the first few months of 2010, as some local developers slashed prices or staged auctions on their newly built condominiums, a small segment at the upper end of the condo market flourished. As Gail Lissner of Appraisal Research Counselors notes, “There are always wealthy people with the ability to buy.” The big difference lately is that those well-heeled folks have been shelling out princely sums to buy luxurious new condos in downtown high-rises. “These are not speculators buying cookie-cutter condos,” says Lissner. “By and large, they are buying to live in these really high-end, unique places.”
Consider these numbers: From the beginning of the year until the middle of May, about 40 downtown condos have been sold for $2 million or more—and most of those condos were in buildings that opened in the last two years. (Some sales may have not yet appeared in public records.) They ranged from an $8.182-million sale at the Elysian—the 60-story tower at 11 East Walton Street designed by Lucien Lagrange—to a three-bedroom unit that went for a little more than $2.24 million at Aqua, the much-praised skyscraper at 225 North Columbus Drive that Jeanne Gang designed for Magellan Development. (The Elysian sale was the highest price paid for a Chicago condo since November 2006, when a 61st-floor unit at the Park Tower—at 800 North Michigan Avenue—went for $8.275 million.)
What’s driving the sales? To update an old real-estate adage: timing, timing, timing. Many of these new elite homeowners made their decision to buy several years ago, while buildings were under construction or still in the planning stage—and before the recession punctured the real-estate boom. With those condo towers now ready for residents, the folks who agreed years ago to buy are finally inking the deals.
That’s generally what’s been happening at the Elysian, according to Caryl Dillon, who was the tower’s sales agent. Since January 1st, at least 16 buyers there closed on condos priced at $2 million or more (in addition to the $8.182-million sale already mentioned, one condo went for $7.25 million and another for $6.9 million). That’s on top of a first round of December 2009 closings at $2 million and up. Meanwhile, at The Legacy (which recently opened at 60 East Monroe Street), three units priced at more than $2 million were among the first closings in the building—and usually the earliest buyers sign off on the earliest closings. (Since condos on a building’s bottom floors are often finished first, some lower-level, lower-priced units bought during construction can also be among the earliest closings.)
Buyers who signed contracts before the bust could have opted to cancel their contracts when the economy soured—as did numerous buyers of medium-priced homes. But “10 percent [the standard deposit on a condo] is a lot to walk away from” on a multimillion-dollar sale, Lissner says. Still, as she suggests, it’s also likely that for many of these rich buyers “their lifestyle hasn’t changed in the downturn.”
Janet Owen, a Sudler Sotheby’s International agent who works exclusively in the luxury market, points out that many rich people have not had to worry about the tight mortgage-financing climate that has contributed to the drag on the larger real-estate market. Mortgage lenders have been requiring bigger down payments, higher credit scores, and more detailed documentation of financial histories from average buyers. “These aren’t issues [wealthy potential homeowners] have to think about,” says Owen. On top of this, she notes, “their buying had nothing to do with the $8,000 federal tax credit.”
That is especially true of well-to-do buyers who made their purchase decisions recently. In early May, someone paid $2.3 million for a previously owned condo on the 51st floor of the Trump International Hotel & Tower (that building, at 401 North Wabash Avenue, opened in 2008). Another buyer spent $3.45 million in April for a 54th–floor condo at 55 East Erie that an investor had held on to since 2003. These new purchasers “are almost always cash buyers,” says Tere Proctor, who was the director of sales at Trump before returning to agency work (at Koenig & Strey Real Living). “They see the value in buildings like Trump and the Elysian, and they’re banking on knowing that whenever the market gets better, they will be holding valuable real estate.”
Read the full article and see building highlights here.
Wednesday, July 28, 2010
Home Affordability is the best it has been in decades!
Daniel Kelley is the lead real estate analyst and portfolio manager of the Fidelity Select Construction and Housing Portfolio.
"Having just gone through a potentially once-in-a-lifetime down market, there is a bright light. Home affordability is the best in decades. In fact, on average, today's homebuyers have the lowest mortgage payments as a percentage of income in 30 years," wrote Kelley in a recent research report.
"Having just gone through a potentially once-in-a-lifetime down market, there is a bright light. Home affordability is the best in decades. In fact, on average, today's homebuyers have the lowest mortgage payments as a percentage of income in 30 years," wrote Kelley in a recent research report.
Friday, July 16, 2010
Highlights Around Town for the Month of July
Looking for some summer fun? Try one of these events!
• The River North scene will take center stage again at the Taste of River North, Saturday, July 17th 12pm-10pm and Sunday, July 18th 11am-8pm. Located in and around magnificent Erie Park, this fest gives food lovers and weary art shoppers a taste of the best of everything the trendy River North neighborhood has to offer along a picturesque green riverfront setting. Near Erie & Kingsbury.
• The Dearborn Garden Walk, Sunday, July 18, and the Chicago Yacht Club’s Race to Mackinac, Saturday, July 24! These two colorful & memorable events have always made the middle of summer most enjoyable by showcasing warm weather enjoyment on land and in water!
• Your love of flowers will flourish on as you also enjoy the Sheffield Garden Walk, July 17 & 18 as well as the continuing Summer Tropical Flower Show at the Garfield Park Conservatory here through September 26. The show is featuring Chicago-weather friendly fauna to enjoy throughout the year.
• Enjoy an evening of music in one of our many intimate music venues in and around Chicago! David Sanborn will be performing his long known sweet jazz saxophone Saturday, July 31 in Wentz Concert Hall at North Central College in Naperville. Andrea Marcovicci will serenade you with her soft & melancholy voice July 14 – 18 At Davenport’s Piano Bar & Cabaret. For something a little hotter, enjoy Chichito Valdes Afro-Cuban Ensemble July 23 & 24 at the Green Mill
• Want to get away? Day-Tripping is the way to go! A day in the country is a sure way to revive yourself from the daily city grind! County fairs abound with all the fun food and events that are a traditional part of them! The Kane County Fair in St. Charles, July 14-18; The DuPage County Fair in Wheaton, July 21-24; The Lake County Fair in Grayslake, July 27 though Aug 1
• Still can’t come back inside because the weather is so nice? How about an outdoor concert? Millennium Park & Ravinia are offering a wonderful line-up of classical favorites! If classic rock is more your style, Chicago will be performing with the Doobie Brothers on Friday, July 16 and REO Speedwagon along with Pat Benatar, Sunday, July 18 at Carter One Pavilion at Northerly Island.
• Art fairs are also a wonderful way to get a nice walk in as part of your exercise routine while enjoying the talents of many local and national artists as they showcase their sculptures and painting. The North Shore Festival of Art will be held July 25 - 26 in Skokie.
• The Gold Coast Art Fair! This year the fair has a new address…Butler Field in Grant Park! Save the Date! Aug 20-22
• The River North scene will take center stage again at the Taste of River North, Saturday, July 17th 12pm-10pm and Sunday, July 18th 11am-8pm. Located in and around magnificent Erie Park, this fest gives food lovers and weary art shoppers a taste of the best of everything the trendy River North neighborhood has to offer along a picturesque green riverfront setting. Near Erie & Kingsbury.
• The Dearborn Garden Walk, Sunday, July 18, and the Chicago Yacht Club’s Race to Mackinac, Saturday, July 24! These two colorful & memorable events have always made the middle of summer most enjoyable by showcasing warm weather enjoyment on land and in water!
• Your love of flowers will flourish on as you also enjoy the Sheffield Garden Walk, July 17 & 18 as well as the continuing Summer Tropical Flower Show at the Garfield Park Conservatory here through September 26. The show is featuring Chicago-weather friendly fauna to enjoy throughout the year.
• Enjoy an evening of music in one of our many intimate music venues in and around Chicago! David Sanborn will be performing his long known sweet jazz saxophone Saturday, July 31 in Wentz Concert Hall at North Central College in Naperville. Andrea Marcovicci will serenade you with her soft & melancholy voice July 14 – 18 At Davenport’s Piano Bar & Cabaret. For something a little hotter, enjoy Chichito Valdes Afro-Cuban Ensemble July 23 & 24 at the Green Mill
• Want to get away? Day-Tripping is the way to go! A day in the country is a sure way to revive yourself from the daily city grind! County fairs abound with all the fun food and events that are a traditional part of them! The Kane County Fair in St. Charles, July 14-18; The DuPage County Fair in Wheaton, July 21-24; The Lake County Fair in Grayslake, July 27 though Aug 1
• Still can’t come back inside because the weather is so nice? How about an outdoor concert? Millennium Park & Ravinia are offering a wonderful line-up of classical favorites! If classic rock is more your style, Chicago will be performing with the Doobie Brothers on Friday, July 16 and REO Speedwagon along with Pat Benatar, Sunday, July 18 at Carter One Pavilion at Northerly Island.
• Art fairs are also a wonderful way to get a nice walk in as part of your exercise routine while enjoying the talents of many local and national artists as they showcase their sculptures and painting. The North Shore Festival of Art will be held July 25 - 26 in Skokie.
• The Gold Coast Art Fair! This year the fair has a new address…Butler Field in Grant Park! Save the Date! Aug 20-22
Tuesday, July 13, 2010
NOTICE OF MOVIE FILMING IN THE AREA
DW Studios Productions is currently filming scenes for the upcoming motion picture “Transformers 3” in the area. One of the principal locations in the film is Michigan Avenue in the vicinity of the Chicago River. Major filming with special effects is scheduled for Friday, July 16th, Saturday, July 17th and Sunday, July 18th from approximately 7am until 7pm. Scenes will include low flying helicopters and special effects such as gunfire, spark hits, explosions, fireballs and black smoke.
Please note the following proposed schedule for the area:
Tuesday, July 13th 8am to mid-morning: 1-2 helicopters flying closely at the top of the Trump Tower.
Thursday, July 15th 8pm – Monday, July 19th 5am: Michigan Avenue between Ohio and Wacker Drive will be closed. Lower Michigan Avenue will be available to vehicular traffic until Friday July 16th at 8pm. During these days, the loudest stunts and special effects will be filmed. Please note that gunfire and explosions will take place after 8am on Saturday, July 17th and Sunday, July 18th.
Saturday, July 17th and Sunday, July 18th from 7am throughout the morning: Precision skydivers with parachutes will be flying around the building and landing on the Michigan Avenue Bridge. They will be circling along the Chicago River. This will result in occasional closures for 10-15 minute periods for affected streets below the fly zone. This will include a lockdown of vehicular and pedestrian traffic. Areas expected to be affected include:
Hubbard between Clark and State
Kinzie between Clark & State
Dearborn between Wacker and Hubbard
State between Wacker and Hubbard
Wabash between Wacker and Kinzie
Monday, July 19th from 10am-4pm: 3 Base jumpers will be jumping from the Trump Tower roof to the south side of the Tower. The River Walk will be closed during this time. Additional closures may occur as necessary.
Tuesday, July 20th from 10am-4pm: If weather is inclement on Monday, July 19th this is the back-up date for the base jumpers.
Monday, July 19th - Wednesday, July 21st: Filming will occur at Hotel 71 and expected closures include Wacker from Michigan to Wabash as well as intermittent traffic control on nearby streets.
Saturday, July 24th – Tuesday, July 27th and Saturday, July 31st - Sunday, August 1st: Filming will occur at 35 E. Wacker and expected closures include portions of Wabash and Wacker as well as intermittent traffic control on nearby streets.
Tuesday, July 27th: Filming will occur in immediate areas surrounding Trump Tower and there will be intermittent traffic control in the area. Filming will also include helicopters.
Please note that businesses in the affected areas are scheduled to remain open during this time. Bus stops on North Michigan Avenue between Ontario and Wacker will be relocated. Signs are expected to be posted. Please be advised that loading zones for boats along the river may be relocated and signage will be posted indicating the alternate loading zones.
Public Assistance personnel will be placed at the pedestrian lock-up points and will provide detour information. The personnel will be wearing yellow shirts with the “Transformers” logo.
Please note the following proposed schedule for the area:
Tuesday, July 13th 8am to mid-morning: 1-2 helicopters flying closely at the top of the Trump Tower.
Thursday, July 15th 8pm – Monday, July 19th 5am: Michigan Avenue between Ohio and Wacker Drive will be closed. Lower Michigan Avenue will be available to vehicular traffic until Friday July 16th at 8pm. During these days, the loudest stunts and special effects will be filmed. Please note that gunfire and explosions will take place after 8am on Saturday, July 17th and Sunday, July 18th.
Saturday, July 17th and Sunday, July 18th from 7am throughout the morning: Precision skydivers with parachutes will be flying around the building and landing on the Michigan Avenue Bridge. They will be circling along the Chicago River. This will result in occasional closures for 10-15 minute periods for affected streets below the fly zone. This will include a lockdown of vehicular and pedestrian traffic. Areas expected to be affected include:
Hubbard between Clark and State
Kinzie between Clark & State
Dearborn between Wacker and Hubbard
State between Wacker and Hubbard
Wabash between Wacker and Kinzie
Monday, July 19th from 10am-4pm: 3 Base jumpers will be jumping from the Trump Tower roof to the south side of the Tower. The River Walk will be closed during this time. Additional closures may occur as necessary.
Tuesday, July 20th from 10am-4pm: If weather is inclement on Monday, July 19th this is the back-up date for the base jumpers.
Monday, July 19th - Wednesday, July 21st: Filming will occur at Hotel 71 and expected closures include Wacker from Michigan to Wabash as well as intermittent traffic control on nearby streets.
Saturday, July 24th – Tuesday, July 27th and Saturday, July 31st - Sunday, August 1st: Filming will occur at 35 E. Wacker and expected closures include portions of Wabash and Wacker as well as intermittent traffic control on nearby streets.
Tuesday, July 27th: Filming will occur in immediate areas surrounding Trump Tower and there will be intermittent traffic control in the area. Filming will also include helicopters.
Please note that businesses in the affected areas are scheduled to remain open during this time. Bus stops on North Michigan Avenue between Ontario and Wacker will be relocated. Signs are expected to be posted. Please be advised that loading zones for boats along the river may be relocated and signage will be posted indicating the alternate loading zones.
Public Assistance personnel will be placed at the pedestrian lock-up points and will provide detour information. The personnel will be wearing yellow shirts with the “Transformers” logo.
Monday, July 12, 2010
Chicago's Trump Hotel towers above U.S., Canadian rivals
The Donald's got The Best, at least according to Travel + Leisure magazine.
Trump International Hotel & Tower Chicago is ranked in the magazine August's issue as the No. 1 large city hotel in the U.S. and Canada.
The 339 rooms in the hotel are on floors 14 through 27 of the 92-story tower at 401 N. Wabash -- the former site of the Sun-Times Building.
Donald Trump, in a statement, called the honor "tremendous."
"With Trump Hotel Collection, we set out to invent the next generation of luxury hospitality," said Trump, chairman and president of The Trump Organization. "We are committed to bringing the best design, service and amenities to the market."
The Peninsula hotel at 108 E. Superior ranked No. 2 on the Travel + Leisure list.
July 9, 2010, SUN-TIMES STAFF
Trump International Hotel & Tower Chicago is ranked in the magazine August's issue as the No. 1 large city hotel in the U.S. and Canada.
The 339 rooms in the hotel are on floors 14 through 27 of the 92-story tower at 401 N. Wabash -- the former site of the Sun-Times Building.
Donald Trump, in a statement, called the honor "tremendous."
"With Trump Hotel Collection, we set out to invent the next generation of luxury hospitality," said Trump, chairman and president of The Trump Organization. "We are committed to bringing the best design, service and amenities to the market."
The Peninsula hotel at 108 E. Superior ranked No. 2 on the Travel + Leisure list.
July 9, 2010, SUN-TIMES STAFF
Thursday, July 8, 2010
CATERING TO SENIORS CAN MAKE YOUR BUSINESS BOOM
Even when business isn’t booming, there are still plenty of opportunities to enter the senior market, especially since baby boomers often seek a simpler way of life regardless of the push or pull of market forces. Boomers are an ever-growing market segment, and they are more active and picky than the 50+ buyers in the past. Whether you’ve been working in the senior market for ages or are just looking to discover its hidden potential, you must understand how to cater to boomers’ needs to tap into a market that may lead you to new success.
Taking the Additional Time to Make a Senior Sale
To meet seniors’ long-term needs, agents and developers say selling to baby boomers often takes longer than selling to younger clients. Lucchetti notes the emotional attachment seniors have to their homes – some of which they have lived in for a lifetime – often leads to a longer lead time before they make the final move.
Hartz notes that senior buyers are often cautious and conservative – particularly in this market. However, they often move quickly when they sell their property as they are ready for the next step in their life and can be cash buyers – a huge plus in any market.
Since the sale can take longer with boomers, agents must be persistent in their communication with clients. Thompson uses newsletters and community outreach to stay in contact with seniors, while communicating with their relatives through e-mail. She says you must build a relationship over time to gain their trust, which requires you to stay in touch with them frequently.
Just because these clients are more mature, it doesn’t mean they are still living in the dark ages. Tricia Fox of Keller Williams Luxury Homes says she e-mails back and forth with most baby boomer clients, and occasionally texts with those savvy enough to do so. Find out which method of communication works best for the client, and proceed accordingly.
“Knowing the effects that arthritis, as well as loss of hearing and vision, can have on communication and decision making has a big impact on how you deal with boomers and other seniors,” says Kunicki.
How You Can Benefit from Boomer Business
Despite all the additional work required, Fox says the senior market is the “best market” to be in at the moment, as many seniors are buying a second home or downsizing and embracing the Chicago area.
While it is not always true, oftentimes boomers are the ones out there with money to spend. Boomer Project founder/president Matt Thornhill claims that the over-50 crowd outspends the under-50 crowd by $400 billion. Additionally, the latest survey conducted by ProMatura Group found that 50+ sentiment is on the rise, and that 50+ primary home purchases have risen by 5 percent. With more years in the workforce, boomers have the potential to spend a lot more money on their next step in life.
With Social Security no longer a primary source of income for many boomers, there is a growing trend of delaying retirement. The Del Webb survey found that boomers turning 50 this year plan to retire a median of four years later than 50 year olds in 1996, at age 67 versus 63. Among the younger boomers, 72 percent plan to work in some fashion during their retirement years. With more and more seniors continuing to work and putting off retirement, many are no longer interested in communities that are far from employment opportunities.
When it comes to the bottom line, most agents claim the commission in the senior market is comparable to the pre-retirement age market. Additionally, some independent senior communities offering rental properties, such as LaGrange Pointe in LaGrange, provide commission to agents.
Overall, boomers and seniors are not a market to be ignored. The U.S. Census states that the over-50 crowd will grow 21 percent in size in 10 years, while the 18 to 49 population will remain the same size. As the number increases, so do your opportunities to find additional clients – and sales. Those who cater to the senior market may find that their business grows on all fronts, if they take the time to understand the specific and changing needs of baby boomers and their families.
For the full article click here.
Morgan Phelps, Chicago Agent Magazine
Taking the Additional Time to Make a Senior Sale
To meet seniors’ long-term needs, agents and developers say selling to baby boomers often takes longer than selling to younger clients. Lucchetti notes the emotional attachment seniors have to their homes – some of which they have lived in for a lifetime – often leads to a longer lead time before they make the final move.
Hartz notes that senior buyers are often cautious and conservative – particularly in this market. However, they often move quickly when they sell their property as they are ready for the next step in their life and can be cash buyers – a huge plus in any market.
Since the sale can take longer with boomers, agents must be persistent in their communication with clients. Thompson uses newsletters and community outreach to stay in contact with seniors, while communicating with their relatives through e-mail. She says you must build a relationship over time to gain their trust, which requires you to stay in touch with them frequently.
Just because these clients are more mature, it doesn’t mean they are still living in the dark ages. Tricia Fox of Keller Williams Luxury Homes says she e-mails back and forth with most baby boomer clients, and occasionally texts with those savvy enough to do so. Find out which method of communication works best for the client, and proceed accordingly.
“Knowing the effects that arthritis, as well as loss of hearing and vision, can have on communication and decision making has a big impact on how you deal with boomers and other seniors,” says Kunicki.
How You Can Benefit from Boomer Business
Despite all the additional work required, Fox says the senior market is the “best market” to be in at the moment, as many seniors are buying a second home or downsizing and embracing the Chicago area.
While it is not always true, oftentimes boomers are the ones out there with money to spend. Boomer Project founder/president Matt Thornhill claims that the over-50 crowd outspends the under-50 crowd by $400 billion. Additionally, the latest survey conducted by ProMatura Group found that 50+ sentiment is on the rise, and that 50+ primary home purchases have risen by 5 percent. With more years in the workforce, boomers have the potential to spend a lot more money on their next step in life.
With Social Security no longer a primary source of income for many boomers, there is a growing trend of delaying retirement. The Del Webb survey found that boomers turning 50 this year plan to retire a median of four years later than 50 year olds in 1996, at age 67 versus 63. Among the younger boomers, 72 percent plan to work in some fashion during their retirement years. With more and more seniors continuing to work and putting off retirement, many are no longer interested in communities that are far from employment opportunities.
When it comes to the bottom line, most agents claim the commission in the senior market is comparable to the pre-retirement age market. Additionally, some independent senior communities offering rental properties, such as LaGrange Pointe in LaGrange, provide commission to agents.
Overall, boomers and seniors are not a market to be ignored. The U.S. Census states that the over-50 crowd will grow 21 percent in size in 10 years, while the 18 to 49 population will remain the same size. As the number increases, so do your opportunities to find additional clients – and sales. Those who cater to the senior market may find that their business grows on all fronts, if they take the time to understand the specific and changing needs of baby boomers and their families.
For the full article click here.
Morgan Phelps, Chicago Agent Magazine
Wednesday, July 7, 2010
YTD condo closings up 45% over 2009
In the first six months of this year, condo sales have dramatically increased compared to the first half of 2009. And June closings were up 26% over May.
According to figures generated for ChicagoCondosOnline.com by MRED, the regional MLS, year-to-date sales of Chicago condos through June 2010 are:
* Up 42% in total dollar volume, to $1.8 billion
* Up 45% in units closed, to 5,630
* Down 6% in median sales price, to $263,700
* Down 6% in average market time, to 148 days.
Comparing June sales to May:
* Units closed were up 26%, from 1,083 to 1,365 closings
* Dollar volume was up 27%, from $341 million to $434 million
* Median sales price was up 2%, from $264,900 to $270,000
* Average market time was flat, at 144 days
For details on month-over-month and year-over-year: click here.
For previous market reports: click here.
According to figures generated for ChicagoCondosOnline.com by MRED, the regional MLS, year-to-date sales of Chicago condos through June 2010 are:
* Up 42% in total dollar volume, to $1.8 billion
* Up 45% in units closed, to 5,630
* Down 6% in median sales price, to $263,700
* Down 6% in average market time, to 148 days.
Comparing June sales to May:
* Units closed were up 26%, from 1,083 to 1,365 closings
* Dollar volume was up 27%, from $341 million to $434 million
* Median sales price was up 2%, from $264,900 to $270,000
* Average market time was flat, at 144 days
For details on month-over-month and year-over-year: click here.
For previous market reports: click here.
Wednesday, June 30, 2010
Chicago Home Sales
Crain's reported today..
The Chicago-area index seemed to hit bottom in April 2009, after a 27.4% drop from its September 2006 peak. The index rose steadily through last September but then started falling again. It now stands 28.6% below its peak and roughly where it was in May 2002.
S&P also reported that an index of Chicago-area condominium prices rose 5.2% from March to April. The local condo index fell 6.7% on a year-over-year basis and was down 22.5% from its peak in September 2007.
The Chicago-area index seemed to hit bottom in April 2009, after a 27.4% drop from its September 2006 peak. The index rose steadily through last September but then started falling again. It now stands 28.6% below its peak and roughly where it was in May 2002.
S&P also reported that an index of Chicago-area condominium prices rose 5.2% from March to April. The local condo index fell 6.7% on a year-over-year basis and was down 22.5% from its peak in September 2007.
Friday, June 25, 2010
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Looking for a building that has a great pool?
Look no further!
Visit GoldCoastResidences for buildings that meet your needs.
Click here for more information about buildings that allow pets
Click here for more information about buildings with pools
Thursday, June 24, 2010
Tuesday, June 22, 2010
Chicago home sales jump 32% in May
By: Lorene Yue June 22, 2010, Chicago Business
(Crain's) — More homes were sold in Chicago in May than a year earlier, marking the ninth month in a row of year-over-year gains.
The Illinois Assn. of Realtors reported Tuesday that last month's sales of 2,057 single-family houses and condominiums represented a 32.1% increase from May 2009 sales. The median price also rose, up 2.2% to $230,000, from the same month last year.
The city's May sales uptick was also seen in the greater Chicago area, where 33.6% more homes were sold. The median price for those homes, however, fell, down 4.8% to $190,500.
Illinois home sales were up 27.1%. The median price of the 11,638 homes sold statewide last month was $157,00, a slight increase from the $156,000 median of May 2009.
The National Assn. of Realtors said Midwest home sales remained strong in May as the homebuyers tax credit drove sales nearly 22% higher than in May 2009. The credit called for offers to be made by April 30.
The data released Tuesday show 130,000 sales in the 11-state Midwest region in May. The median home price increased more than 2%, to $150,700.
Midwest sales again rose more than national ones. Nonseasonally adjusted figures show May home sales nationwide increased about 18% over last year.
The Associated Press-Re/Max Monthly Housing Report, which also was released Tuesday, showed home sales increasing in all but one of 12 major Midwestern cities tracked. Fargo, N.D., led the region with a 66% sales jump. Detroit reported the only sales decrease, a 15% drop.
For more information and a breakdown of Chicago area sales click here.
(Crain's) — More homes were sold in Chicago in May than a year earlier, marking the ninth month in a row of year-over-year gains.
The Illinois Assn. of Realtors reported Tuesday that last month's sales of 2,057 single-family houses and condominiums represented a 32.1% increase from May 2009 sales. The median price also rose, up 2.2% to $230,000, from the same month last year.
The city's May sales uptick was also seen in the greater Chicago area, where 33.6% more homes were sold. The median price for those homes, however, fell, down 4.8% to $190,500.
Illinois home sales were up 27.1%. The median price of the 11,638 homes sold statewide last month was $157,00, a slight increase from the $156,000 median of May 2009.
The National Assn. of Realtors said Midwest home sales remained strong in May as the homebuyers tax credit drove sales nearly 22% higher than in May 2009. The credit called for offers to be made by April 30.
The data released Tuesday show 130,000 sales in the 11-state Midwest region in May. The median home price increased more than 2%, to $150,700.
Midwest sales again rose more than national ones. Nonseasonally adjusted figures show May home sales nationwide increased about 18% over last year.
The Associated Press-Re/Max Monthly Housing Report, which also was released Tuesday, showed home sales increasing in all but one of 12 major Midwestern cities tracked. Fargo, N.D., led the region with a 66% sales jump. Detroit reported the only sales decrease, a 15% drop.
For more information and a breakdown of Chicago area sales click here.
Wednesday, June 16, 2010
Wednesday, June 9, 2010
Mortgage Rates at New Lows, Thanks to Europe's Debt Crisis
Here's some good news for the struggling US housing market: Thanks to the European debt crisis, mortgage rates are at historic lows.
The current average rate for a 30 year fixed loan is 4.87 percent, according to Bankrate.com. That's the lowest rate for the 30 years since Bankrate started keeping track 25 years ago.
Even jumbo loan rates-loans for more than $417,000-have fallen. The 30-year fixed jumbo loan is at an average rate of 4.5 percent, down from nearly 6 percent at this time last year.
"It's the best time in our generation to buy," says Mark Zandi, chief economist at Moody's. "It may be the best time in any generation. Mortgage rates are so low and with homes prices down and lots of inventory, you couldn't pick a better time to buy or re-finance."
Europe's debt crisis is behind the drop. Nervous investors are flocking to the security of US Treasurys, which pushes down their yield and influences a host of consumer interest rates-including those on mortgages.
The decline is also good news for homeowners looking to refinance, particularly those who owe more on their mortgage than their house is worth.
"There's a tremendous window on re-financing," says Greg McBride, chief economist at Bankrate.com. "That's particularly true for people who can take advantage of the government's Home Affordability Refinance Program (HARP)-which allows home owners to refinance into low mortgage interest rates even if they're property value has gone down."
HARP, which was due to end at the end of this June, now runs through June of 2011.
"Think of the benefits if you buy or refinance now," says McBride. "Locking in now at the lower rates means more more bang for the buck and more breathing room for homeowners when it comes to payments."
But the decline in rates probably won't last long, analysts say. So homeowners need to move fast.
"I think they won't last much longer than a month or two at the best," says Lawrence Yun, chief economist at the National Association of Realtors. "I can see them going up to 5.5 percent by the end of June if not sooner."
The reasons? Yun says the worries over Europe will be fading soon and investors will be looking at other assets besides US Treasurys. And there's the US deficit, which will push up Treasury yields.
"The US is fortunate now that there's no pressure on interest rates," Yun goes on to say. "But going forward, higher rates will be needed for financing the debt."
Zandi agrees. "Yes, I can't see these rates being this low in three to four weeks," Zandi says. "Investor's will settle down and this current crisis (Europe) will pass and the focus will be back on US debt. It's really a now or never type of proposition, when it comes to getting these types of historic rates."
Source: CNBC
The current average rate for a 30 year fixed loan is 4.87 percent, according to Bankrate.com. That's the lowest rate for the 30 years since Bankrate started keeping track 25 years ago.
Even jumbo loan rates-loans for more than $417,000-have fallen. The 30-year fixed jumbo loan is at an average rate of 4.5 percent, down from nearly 6 percent at this time last year.
"It's the best time in our generation to buy," says Mark Zandi, chief economist at Moody's. "It may be the best time in any generation. Mortgage rates are so low and with homes prices down and lots of inventory, you couldn't pick a better time to buy or re-finance."
Europe's debt crisis is behind the drop. Nervous investors are flocking to the security of US Treasurys, which pushes down their yield and influences a host of consumer interest rates-including those on mortgages.
The decline is also good news for homeowners looking to refinance, particularly those who owe more on their mortgage than their house is worth.
"There's a tremendous window on re-financing," says Greg McBride, chief economist at Bankrate.com. "That's particularly true for people who can take advantage of the government's Home Affordability Refinance Program (HARP)-which allows home owners to refinance into low mortgage interest rates even if they're property value has gone down."
HARP, which was due to end at the end of this June, now runs through June of 2011.
"Think of the benefits if you buy or refinance now," says McBride. "Locking in now at the lower rates means more more bang for the buck and more breathing room for homeowners when it comes to payments."
But the decline in rates probably won't last long, analysts say. So homeowners need to move fast.
"I think they won't last much longer than a month or two at the best," says Lawrence Yun, chief economist at the National Association of Realtors. "I can see them going up to 5.5 percent by the end of June if not sooner."
The reasons? Yun says the worries over Europe will be fading soon and investors will be looking at other assets besides US Treasurys. And there's the US deficit, which will push up Treasury yields.
"The US is fortunate now that there's no pressure on interest rates," Yun goes on to say. "But going forward, higher rates will be needed for financing the debt."
Zandi agrees. "Yes, I can't see these rates being this low in three to four weeks," Zandi says. "Investor's will settle down and this current crisis (Europe) will pass and the focus will be back on US debt. It's really a now or never type of proposition, when it comes to getting these types of historic rates."
Source: CNBC
Monday, June 7, 2010
Rents up at downtown apartments for first time in 2 years
(Crain’s) — A construction wave coupled with 11.2% unemployment would normally make life miserable for apartment owners, but downtown landlords are holding up surprisingly well.
The occupancy rate for top-tier downtown apartment buildings rose to 93.6% in the first quarter, up from 91.4% in the fourth quarter and 90.9% in the year-earlier period, according to Appraisal Research Counselors, a Chicago-based consulting firm.
Including concessions like free rent, net rents at Class A buildings rose to $2.16 a square foot, up 3.9% from $2.08 in the fourth quarter and 1.9% from $2.12 in first-quarter 2009. It was the first year-over-year rent increase in two years.
“There’s just huge demand for rental product downtown right now, and owners have been quick to capitalize on it,” says Appraisal Research Vice-President Ron DeVries.
Apartment demand is usually low when unemployment is high, as would-be tenants try to save money by doubling up or living with their parents. But that’s not the case downtown, where many prospective condominium buyers are renting as they wait out the depressed condominium market.
“They’re not convinced that the market has bottomed out on the ownership side,” Mr. DeVries says.
That helps explain why a much-feared surge in apartment supply so far has not kept occupancies and rents from rising. Developers have added 4,077 units to the downtown market since the beginning of 2008 and will complete another 799 by the end of the year, according to Appraisal Research.
“Six months ago all of us were nervous,” says Steven Fifield, president of Chicago-based Fifield Cos., the developer of Alta at K Station, a new two-tower, 848-unit apartment project at 555 W. Kinzie St. in the West Loop.
The nerves have given way to relief. Fifield estimated it would lease about 10 units a week at Alta’s 420-unit west tower, which opened March 1. Instead, Alta is averaging more than 20 and the west tower is already 50% leased, Mr. Fifield says.
“The supply is getting absorbed substantially faster than I expected,” he says.
One key measure of demand is rising at its fastest pace of the past 10 years. The number of occupied downtown apartments rose by 2,190 units from first-quarter 2009 to first-quarter 2010, the biggest annual gain of the last decade, according to Appraisal Research.
By contrast, the number of occupied apartments fell in the last recession by more than 1,400 units.
Granted, developers are offering good deals to attract tenants, in many cases as much as two months of free rent. As a result, developers are collecting lower net rents than they projected when they broke ground, before the jobless rate soared.
And while downtown Class A net rents are rising again, they have fallen more in the current recession than they did in the last one. Net rents declined 13% from their peak in the third-quarter 2007 to their low of $2.08 a square foot in fourth-quarter 2009, according to Appraisal Research. They fell 12.4% in the prior recession.
Still, given how strong demand is, Mr. DeVries expects net rents to rise about 4% this year and occupancy to hit 95%.
“Once those jobs do start coming back, it will be fascinating to see what happens with rents,” he says.
If there is one spot where oversupply is a concern, it’s in the South Loop, where new construction and competition from condo rentals is depressing rents.
“There’s been a bit of divide in the market,” Mr. DeVries says.
But optimism is returning, with some developers already laying the groundwork for the new round of construction.
They are looking forward to 2012, when the economy is stronger and the market has had time to absorb the supply from the current development wave. After completing 2,234 units this year, downtown developers will finish none in 2011.
“There’s a lot of people talking now and trying to work up numbers for a new rental building,” Mr. DeVries says.
By: Alby Gallun May 24, 2010 for Chicago Business
The occupancy rate for top-tier downtown apartment buildings rose to 93.6% in the first quarter, up from 91.4% in the fourth quarter and 90.9% in the year-earlier period, according to Appraisal Research Counselors, a Chicago-based consulting firm.
Including concessions like free rent, net rents at Class A buildings rose to $2.16 a square foot, up 3.9% from $2.08 in the fourth quarter and 1.9% from $2.12 in first-quarter 2009. It was the first year-over-year rent increase in two years.
“There’s just huge demand for rental product downtown right now, and owners have been quick to capitalize on it,” says Appraisal Research Vice-President Ron DeVries.
Apartment demand is usually low when unemployment is high, as would-be tenants try to save money by doubling up or living with their parents. But that’s not the case downtown, where many prospective condominium buyers are renting as they wait out the depressed condominium market.
“They’re not convinced that the market has bottomed out on the ownership side,” Mr. DeVries says.
That helps explain why a much-feared surge in apartment supply so far has not kept occupancies and rents from rising. Developers have added 4,077 units to the downtown market since the beginning of 2008 and will complete another 799 by the end of the year, according to Appraisal Research.
“Six months ago all of us were nervous,” says Steven Fifield, president of Chicago-based Fifield Cos., the developer of Alta at K Station, a new two-tower, 848-unit apartment project at 555 W. Kinzie St. in the West Loop.
The nerves have given way to relief. Fifield estimated it would lease about 10 units a week at Alta’s 420-unit west tower, which opened March 1. Instead, Alta is averaging more than 20 and the west tower is already 50% leased, Mr. Fifield says.
“The supply is getting absorbed substantially faster than I expected,” he says.
One key measure of demand is rising at its fastest pace of the past 10 years. The number of occupied downtown apartments rose by 2,190 units from first-quarter 2009 to first-quarter 2010, the biggest annual gain of the last decade, according to Appraisal Research.
By contrast, the number of occupied apartments fell in the last recession by more than 1,400 units.
Granted, developers are offering good deals to attract tenants, in many cases as much as two months of free rent. As a result, developers are collecting lower net rents than they projected when they broke ground, before the jobless rate soared.
And while downtown Class A net rents are rising again, they have fallen more in the current recession than they did in the last one. Net rents declined 13% from their peak in the third-quarter 2007 to their low of $2.08 a square foot in fourth-quarter 2009, according to Appraisal Research. They fell 12.4% in the prior recession.
Still, given how strong demand is, Mr. DeVries expects net rents to rise about 4% this year and occupancy to hit 95%.
“Once those jobs do start coming back, it will be fascinating to see what happens with rents,” he says.
If there is one spot where oversupply is a concern, it’s in the South Loop, where new construction and competition from condo rentals is depressing rents.
“There’s been a bit of divide in the market,” Mr. DeVries says.
But optimism is returning, with some developers already laying the groundwork for the new round of construction.
They are looking forward to 2012, when the economy is stronger and the market has had time to absorb the supply from the current development wave. After completing 2,234 units this year, downtown developers will finish none in 2011.
“There’s a lot of people talking now and trying to work up numbers for a new rental building,” Mr. DeVries says.
By: Alby Gallun May 24, 2010 for Chicago Business
First 5 Months' Condo Sales Dramatically Increased Compared to 2009
According to figures generated for ChicagoCondosOnline.com by MRED, the regional MLS, year-to-date sales of Chicago condos through May 2010 are:
* Up 47% in total dollar volume, to $1.3 billion
* Up 51% in units closed, to 4,229
* Down 6% in median sales price, to $262,000
* Down 4% in average market time, to 150 days.
Comparing May sales to April:
* Units closed were up 1%, from 1,030 to 1,083 closings
* Dollar volume was up 4%, from $328 million to $341 million
* Median sales price was down 2%, from $270,000 to $264,900
* Average market time was down 6%, from 154 days to 144 days
* Up 47% in total dollar volume, to $1.3 billion
* Up 51% in units closed, to 4,229
* Down 6% in median sales price, to $262,000
* Down 4% in average market time, to 150 days.
Comparing May sales to April:
* Units closed were up 1%, from 1,030 to 1,083 closings
* Dollar volume was up 4%, from $328 million to $341 million
* Median sales price was down 2%, from $270,000 to $264,900
* Average market time was down 6%, from 154 days to 144 days
Tuesday, May 18, 2010
Monday, May 17, 2010
Trader pays over $7.25 million for Elysian condo
By: Andrew Schroedter May 17, 2010
(Crain’s) — An options trader is taking a gamble on the Elysian Hotel & Private Residences, paying more than $7.25 million for a condominium in the Gold Coast skyscraper that he hopes to flip for more than $10 million.
Igor Chernomzav, a co-founder of Hard Eight Futures LLC, bought a 12,000-square-foot unit on the 56th and 57th floors of the 60-story tower at 11 E. Walton St., which also features a 188-room hotel, according to property records.
Mr. Chernomzav, 33, who paid cash for the five-bedroom, two-level condo, plans to remodel the unit and put it back on the market, according to Tricia Fox of residential real estate firm Keller Williams, which brokered the sale.
The asking price will be between $10 million and $11 million, Ms. Fox says.
This is the second unit Mr. Chernomzav has purchased in the Elysian, after paying a reported $8.18 million in March for a 52nd-floor unit, which he is also remodeling. Whether he also plans to flip that condo could not be determined.
A spokesman for Mr. Chernomzav declines to comment.
Mr. Chernomzav started Chicago-based Hard Eight in 2004, five years after earning a philosophy degree from Princeton University, according to his firm’s Web site. Originally from San Antonio, he began his career in 1999 as an options trader for Susquehanna Investment, part of suburban Philadelphia-based Susquehanna International Group LLP.
For his recent purchase in the Elysian, the entrepreneur bought a contract for a unit signed several years ago by a speculator represented by Ms. Fox. The identity of the speculator and how much Mr. Chernomzav paid for the contract could not be determined.
But Mr. Chernomzav is paying developer Elysian Worldwide 25% less than the speculator’s original asking price of $9.5 million for the unit, which features a 25-foot living room ceiling and 360-degree views.
Zaga Arsic, also of Keller Williams, represented Mr. Chernomzav.
The deal is a sign that the high-end market is improving as sellers cut prices, says Craig Hogan, managing broker of Keller’s Gold Coast office.
“If the price is right, people will come look,” he says.
Mr. Chernomzav has paid the highest prices for units in the Elysian, surpassing the $6.88 million that James McNulty, former CEO of the Chicago Mercantile Exchange, paid in January for a 7,400-square-foot condo on the project’s 37th floor, according to property records. Mr. McNulty didn’t return a call seeking comment.
Buyers have closed on 31 of the 51 residential condo units in the building, says developer David Pisor, who in November was forced to abandon a plan to also sell the 188 hotel units in the building.
Another 15 residential condos are under contract, says Mr. Pisor, president and CEO of Chicago-based Elysian Worldwide LLC, who adds that sales traffic has picked up in the last 45 days.
“It was pretty brutal there for a while,” he says.
(Crain’s) — An options trader is taking a gamble on the Elysian Hotel & Private Residences, paying more than $7.25 million for a condominium in the Gold Coast skyscraper that he hopes to flip for more than $10 million.
Igor Chernomzav, a co-founder of Hard Eight Futures LLC, bought a 12,000-square-foot unit on the 56th and 57th floors of the 60-story tower at 11 E. Walton St., which also features a 188-room hotel, according to property records.
Mr. Chernomzav, 33, who paid cash for the five-bedroom, two-level condo, plans to remodel the unit and put it back on the market, according to Tricia Fox of residential real estate firm Keller Williams, which brokered the sale.
The asking price will be between $10 million and $11 million, Ms. Fox says.
This is the second unit Mr. Chernomzav has purchased in the Elysian, after paying a reported $8.18 million in March for a 52nd-floor unit, which he is also remodeling. Whether he also plans to flip that condo could not be determined.
A spokesman for Mr. Chernomzav declines to comment.
Mr. Chernomzav started Chicago-based Hard Eight in 2004, five years after earning a philosophy degree from Princeton University, according to his firm’s Web site. Originally from San Antonio, he began his career in 1999 as an options trader for Susquehanna Investment, part of suburban Philadelphia-based Susquehanna International Group LLP.
For his recent purchase in the Elysian, the entrepreneur bought a contract for a unit signed several years ago by a speculator represented by Ms. Fox. The identity of the speculator and how much Mr. Chernomzav paid for the contract could not be determined.
But Mr. Chernomzav is paying developer Elysian Worldwide 25% less than the speculator’s original asking price of $9.5 million for the unit, which features a 25-foot living room ceiling and 360-degree views.
Zaga Arsic, also of Keller Williams, represented Mr. Chernomzav.
The deal is a sign that the high-end market is improving as sellers cut prices, says Craig Hogan, managing broker of Keller’s Gold Coast office.
“If the price is right, people will come look,” he says.
Mr. Chernomzav has paid the highest prices for units in the Elysian, surpassing the $6.88 million that James McNulty, former CEO of the Chicago Mercantile Exchange, paid in January for a 7,400-square-foot condo on the project’s 37th floor, according to property records. Mr. McNulty didn’t return a call seeking comment.
Buyers have closed on 31 of the 51 residential condo units in the building, says developer David Pisor, who in November was forced to abandon a plan to also sell the 188 hotel units in the building.
Another 15 residential condos are under contract, says Mr. Pisor, president and CEO of Chicago-based Elysian Worldwide LLC, who adds that sales traffic has picked up in the last 45 days.
“It was pretty brutal there for a while,” he says.
Spire developer closes sales office at NBC Tower
By: Eddie Baeb May 17, 2010
(Crain’s) — The Chicago Spire has closed its lavish sales office in NBC Tower after settling an eviction lawsuit filed last fall by its landlord over unpaid rent.
Spire developer Shelbourne Development Group reportedly spent about $10 million to build out the spacious sales center on the 18th floor of NBC Tower, 455 N. Cityfront Plaza Drive, while the landlord kicked in almost $350,000.
The sales center, which included a fully built-out model, overlooked the Spire’s site at 400 N. Lake Shore Drive, where construction of the twisting tower that would be North America's tallest building halted in late 2008.
The closing comes nine months after the owner of NBC Tower, a partnership controlled by the family of German billionaire Hugo Mann, filed an eviction suit in August, alleging that Shelbourne stopped paying rent in April 2009 and that the building was owed more than $316,000.
The two sides settled the case in February, after the landlord obtained a judgment for about $55,000, part of the unpaid rent, according to a March 4 court order. The settlement apparently paved the way for Shelbourne to surrender the space.
Dublin, Ireland-based Shelbourne closed the sales center over the weekend. sources say. The company will now make sales pitches for the proposed 150-story condominium tower at Shelbourne’s local business office on Wacker Drive, the Chicago Tribune reported Monday on its Web site.
A Shelbourne spokeswoman didn’t respond to a call or e-mail from Crain’s.
But the spokeswoman told the Tribune that Garrett Kelleher was “being smart" by closing the sales center. "If you're in a situation where things are slowing down, you need to consolidate and you need to be smart,” she said.
Attorney Scott Kenig, a partner in Chicago law firm Randall & Kenig LLP, which represents the Mann family partnership, declines to comment.
(Crain’s) — The Chicago Spire has closed its lavish sales office in NBC Tower after settling an eviction lawsuit filed last fall by its landlord over unpaid rent.
Spire developer Shelbourne Development Group reportedly spent about $10 million to build out the spacious sales center on the 18th floor of NBC Tower, 455 N. Cityfront Plaza Drive, while the landlord kicked in almost $350,000.
The sales center, which included a fully built-out model, overlooked the Spire’s site at 400 N. Lake Shore Drive, where construction of the twisting tower that would be North America's tallest building halted in late 2008.
The closing comes nine months after the owner of NBC Tower, a partnership controlled by the family of German billionaire Hugo Mann, filed an eviction suit in August, alleging that Shelbourne stopped paying rent in April 2009 and that the building was owed more than $316,000.
The two sides settled the case in February, after the landlord obtained a judgment for about $55,000, part of the unpaid rent, according to a March 4 court order. The settlement apparently paved the way for Shelbourne to surrender the space.
Dublin, Ireland-based Shelbourne closed the sales center over the weekend. sources say. The company will now make sales pitches for the proposed 150-story condominium tower at Shelbourne’s local business office on Wacker Drive, the Chicago Tribune reported Monday on its Web site.
A Shelbourne spokeswoman didn’t respond to a call or e-mail from Crain’s.
But the spokeswoman told the Tribune that Garrett Kelleher was “being smart" by closing the sales center. "If you're in a situation where things are slowing down, you need to consolidate and you need to be smart,” she said.
Attorney Scott Kenig, a partner in Chicago law firm Randall & Kenig LLP, which represents the Mann family partnership, declines to comment.
Friday, May 14, 2010
TROLLEY TOUR
Please join us for our New Construction Trolley Tour this Sunday, May 16th!
Space is limited, RSVP to marygeorge@triciafoxgroup.com
This event is for clients of the Tricia Fox Group and their guests only please.
Space is limited, RSVP to marygeorge@triciafoxgroup.com
This event is for clients of the Tricia Fox Group and their guests only please.
Tuesday, May 4, 2010
Monday, May 3, 2010
Free Movies All Summer Long
FREE MOVIES ALL SUMMER LONG!
Cinema/Chicago, the presenting organization of the Chicago International Film Festival, brings the best in international cinema to Chicago through its year-round programming and events. In collaboration with the Chicago Cultural Center and our international and cultural partners throughout the city, we are pleased to host FREE public film screenings at our 7th annual International Summer Screenings Program. Due to the popularity of this program, we've expanded our schedule to include select Saturday matinee screenings, in addition to our weekly Wednesday evening screenings! This weekly film series, running May 5 - September 8, showcases nineteen films from around the world.
Seating is on a first-come, first-served basis and is limited to theater capacity. Films are unrated. Viewer discretion is advised.
May 5 - September 8, 2010 | Wednesdays at 6:30PM | Saturdays at 2:00PM
Chicago Cultural Center | Claudia Cassidy Theater | 77 E. Randolph Street
For a complete schedule and synopses, please visit: Cinema/Chicago website
*****
Wednesday May 5, 6:30pm - BANDIDOS (Mexico)
Wednesday May 12, 6:30pm - MADAME SATA (Brazil)
Wednesday May 19, 6:30pm / Saturday May 22, 2:00pm - BERLIN IS IN GERMANY (Germany)
Wednesday May 26, 6:30pm / Saturday May 29, 2:00pm - DUNYA & DESIE (The Netherlands)
Wednesday June 2, 6:30pm / Saturday June 5, 2:00pm - CAPE NO. 7 (Taipei)
Wednesday June 9, 6:30pm / Saturday June 12, 2:00pm - SCANDAL MAKERS (South Korea)
Wednesday June 16, 6:30pm / Saturday June 19, 2:00pm - BYE, BYE GDR! (Poland)
Wednesday June 23, 6:30pm - MY YEAR WITHOUT SEX (Australia)
Wednesday June 30, 6:30pm* / Saturday July 3, 2:00pm - SEDUCING DR. LEWIS (Canada)
Wednesday July 7, 6:30pm / Saturday July 10, 2:00pm - THE EQUATION OF LOVE AND DEATH (China)
Wednesday July 14, 6:30pm* / Saturday July 17, 2:00pm - WONDERFUL TOWN (Thailand)
Wednesday July 21, 6:30pm / Saturday July 24, 2:00pm - ME AND MY SISTER (France)
Wednesday July 28, 6:30pm / Saturday July 31, 2:00pm - STONES (Stones)
Wednesday August 4, 6:30pm / Saturday August 7, 2:00pm - THE SIGNAL (Argentina)
Wednesday August 11, 6:30pm / Saturday August 14, 2:00pm - DON'T THINK ABOUT IT (Italy)
Wednesday August 18, 6:30pm / Saturday August 21, 2:00pm - SMALL FISH (Austria)
Wednesday August 25, 6:30pm / Saturday August 28, 2:00pm - WILL YOU MARRY US? (Switzerland)
Wednesday September 1, 6:30pm / Saturday September 4, 2:00pm - CASTLE UNDER FIERY SKIES (Japan)
Wednesday September 8, 6:30pm - A TRIP TO THE SEASIDE (Uruguay)
Wednesday, April 28, 2010
Recession? What Recession?
The real estate industry has been slammed, but Keller Williams has endured times like this before. "Keller Williams was founded 26 years ago during one of the toughest markets on record - when interest rates were higher than 18 percent," says CEO Mark Willis. "So our business model prepares us for fluctuating economic situations."
The key, Willis says, is understanding that the consumer does business with the agent and not with the company: "We can only grow if our agents do."
With that in mind, Keller Williams has survived the downturn by focusing on supporting and educating its agents. Throughout 2009, agents had free online training, regional seminars on using technology and social media as sales tools and a tour of North America by the company's co-founder, Gary Keller. Keller also laid out the tactics in his new book, Shift: How Top Real Estate Agents Tackle Tough Times. The most important tactic for Keller Williams franchisees, according to Willis, is "leading with revenue" - that is , spending only money that the business has generated. It seems to have worked. The company saw a cumulative 86 percent increase in franchise owner profits for 2009, and while the National Association of Realtors' membership decreased by 7 percent, Keller Williams' agent count grew to more than 76,000.
By Tracy Stapp, Entrepreneur Magazine, May 2010
The key, Willis says, is understanding that the consumer does business with the agent and not with the company: "We can only grow if our agents do."
With that in mind, Keller Williams has survived the downturn by focusing on supporting and educating its agents. Throughout 2009, agents had free online training, regional seminars on using technology and social media as sales tools and a tour of North America by the company's co-founder, Gary Keller. Keller also laid out the tactics in his new book, Shift: How Top Real Estate Agents Tackle Tough Times. The most important tactic for Keller Williams franchisees, according to Willis, is "leading with revenue" - that is , spending only money that the business has generated. It seems to have worked. The company saw a cumulative 86 percent increase in franchise owner profits for 2009, and while the National Association of Realtors' membership decreased by 7 percent, Keller Williams' agent count grew to more than 76,000.
By Tracy Stapp, Entrepreneur Magazine, May 2010
Tuesday, April 27, 2010
Chicago's Signature Buildings: Living in a Landmark
Downtown Chicago condos have a certain cache, especially those in Chicago's tallest residential buildings. When you can refer to your building with one simple word and people know exactly where you live, you know you've reached a level of downtown Chicago living that is truly luxurious. Living in Chicago's tallest residential buildings also gives you access to the best locations, neighborhoods and amenities in the city.
Aqua
In the Lakeshore East community on the New East Side of Chicago, you'll find a new building with a design that will stop you in your tracks. This is Aqua-- Chicago's newest skyscraper that you can't miss with its wave-inspired architecture. Sitting at the confluence of the Chicago River and Lake Michigan, Aqua has incredible views of both bodies of water and the city skyline, and its location offers immediate access to the downtown Loop, Michigan Avenue shopping and Streeterville nightlife.
The condos of Aqua reside on floors 53 through 81, and each condo's beautiful views are enhanced by the uniquely shaped balconies, which are made to give each condo two or three different views of city. Additionally, Aqua's unique design is environmentally friendly-- the undulating balconies are easy for birds to see, preventing collisions. Additionally, the balconies provide shading from the sunlight, preventing heat gain during the summer and reducing cooling costs. Meanwhile, the concrete that is the main construction material of the building is a good conductor of heat and will radiate heat in the winter, keeping the building warm. This and other green features, like bamboo flooring and a green roof, make the Aqua lifestyle luxurious and green.
Plus, for a rare experience in urban living, you'll find a six-acre park with water features, a children's park, a dog park, running and biking paths and more than 120 varieties of plant life. The Lakeshore East Park has been named "Best New Park" and "Best Open Space" in Chicago-- so why not make it your front yard by living at Aqua? Along with cutting-edge amenities like media rooms, business centers, a health and fitness center, indoor basketball court and an 80,000-square-foot outdoor terrace, the Aqua lifestyle is characterized by luxury indoors and out.
The Trump Tower
Trump real estate specializes in an exclusive lifestyle! For starters, the Trump brand is synonymous with luxury. Within the building, there are 486 private residences, which also is home to a hotel and multiple restaurants and bars. Condominium owners in the building have all the amenities of the hotel, without having to check out! A 24-hour white glove door man, spa and concierge service are just the tip of the iceberg at Trump.
In addition to being near all the best of downtown Chicago dining, Trump-dwellers also have excellent dining options within their building. Sixteen-- a restaurant on, of course, the sixteenth floor of the building-- is the Tower's signature restaurant. It offers exceptional views of Lake Michigan, the Chicago River and the Wrigley Clock Tower along with eclectic New American cuisine. There's also The Terrace at Trump, an outdoor dining deck with the same beautiful views, boutique wines and handcrafted cocktails. Residents also have a built in nightlife hot spot in the sophisticated lounge, Rebar. Cocktails, bar food and sushi await.
Trump also has a variety of optional amenities to suit the most demanding resident: dry cleaning and laundry valet service, housekeeping, in-home dining and catering and designated parking.
The John Hancock Tower
Our final tower is the oldest and most recognizable as a Chicago landmark. While it hosts offices and its tourist attraction, the Hancock Observatory, there are also residences in Chicago's famous tower. Right on Michigan Avenue, there isn't a place in Chicago that is more central than the Hancock. Living at the hub of urban activity, you have immediate access to all of areas of Chicago through public transit.
Like the Trump Tower, Hancock residence owners live near great cuisine options, but also have access to great restaurants in their own building. The Signature Room on the 95th floor of the building is a formal dining experience with the best 360-degree views of Chicago imaginable. Its sister, The Signature Lounge, offers the same great views from the 96th floor and a loungey atmosphere for drinking cocktails and eating lighter fare. And the new Cafe Espression, where you can drink "coffee in the clouds," is the highest Lavazza cafe in the world, serving the kind of coffee most drunk in Italy.
Living in downtown Chicago condos in a recognizable landmark like the Aqua, Trump Tower or the John Hancock Tower might seem like a dream, but with the buyer's market still going strong, it might be more achievable than you have ever imagined! Get in touch with a Gold Coast real estate expert to start your landmark lifestyle.
Aqua
In the Lakeshore East community on the New East Side of Chicago, you'll find a new building with a design that will stop you in your tracks. This is Aqua-- Chicago's newest skyscraper that you can't miss with its wave-inspired architecture. Sitting at the confluence of the Chicago River and Lake Michigan, Aqua has incredible views of both bodies of water and the city skyline, and its location offers immediate access to the downtown Loop, Michigan Avenue shopping and Streeterville nightlife.
Plus, for a rare experience in urban living, you'll find a six-acre park with water features, a children's park, a dog park, running and biking paths and more than 120 varieties of plant life. The Lakeshore East Park has been named "Best New Park" and "Best Open Space" in Chicago-- so why not make it your front yard by living at Aqua? Along with cutting-edge amenities like media rooms, business centers, a health and fitness center, indoor basketball court and an 80,000-square-foot outdoor terrace, the Aqua lifestyle is characterized by luxury indoors and out.
The Trump Tower
Trump real estate specializes in an exclusive lifestyle! For starters, the Trump brand is synonymous with luxury. Within the building, there are 486 private residences, which also is home to a hotel and multiple restaurants and bars. Condominium owners in the building have all the amenities of the hotel, without having to check out! A 24-hour white glove door man, spa and concierge service are just the tip of the iceberg at Trump.
Trump also has a variety of optional amenities to suit the most demanding resident: dry cleaning and laundry valet service, housekeeping, in-home dining and catering and designated parking.
The John Hancock Tower
Our final tower is the oldest and most recognizable as a Chicago landmark. While it hosts offices and its tourist attraction, the Hancock Observatory, there are also residences in Chicago's famous tower. Right on Michigan Avenue, there isn't a place in Chicago that is more central than the Hancock. Living at the hub of urban activity, you have immediate access to all of areas of Chicago through public transit.
Living in downtown Chicago condos in a recognizable landmark like the Aqua, Trump Tower or the John Hancock Tower might seem like a dream, but with the buyer's market still going strong, it might be more achievable than you have ever imagined! Get in touch with a Gold Coast real estate expert to start your landmark lifestyle.
Monday, April 12, 2010
Selling A Second Lifesytle
By Clare Pierson, Chicago Agent Magazine
While some agents are concentrating on finding buyers in general, others are focusing on a special niche that could bring in more business, and at a higher price point: second homes. Focusing on selling second homes might take a little more effort, education and hustle, but in the end it can pay off – and be fun in the process. We spoke with a number of Realtors who work with second-home buyers in Chicagoland to find out how to be successful in this specialized field.
When the term “second home” or “vacation home” is mentioned, what comes to mind? Perhaps images of a lake house complete with its own boat dock or a chalet perched on the side of a ski hill. While both of these ring true, another concept that might not immediately come to mind is a high-rise condo on Michigan Avenue — yet Jean Hagerty, a Resort and Second-Home Property Specialist (RSPS)-licensed agent and luxury home specialist with Keller Williams, sells homes in the Loop and Gold Coast areas to second-home buyers on a regular basis. Seeing Chicago or another urban metropolis as a viable second-home market is a fairly newer concept, but it is indeed a growing niche and it makes sense.
Certainly Chicago’s Broadway-caliber theaters, expansive lakefront and nationally recognized dining scene help this concept along. “I love our city and what it has to offer, so for me to tout how great it is to live downtown is easy and exciting,” says Hagerty. “There is always something new going on here.”
According to Hagerty, a broad range of buyers look to buy second homes in downtown Chicago – a family with a large home in the suburbs might want a downtown getaway, or a parent will buy a child going to college a city condo with the expectation they will use it after their budding student graduates. Additionally, entrepreneurs and retired people with flexible schedules like to split their time between Chicago and someplace warm.
“Buying in Chicago is a little more deliberate,” she says. “We attract people with season tickets to ball games, the opera, the symphony. They are foodies, sports fans and cultural devotees. In other words, people who spend their time here are doing a variety of things. Some have business here frequently, some have family. The Chicago second-home buyers intend to split their time between here and somewhere else. So, it is easier to justify than a home you would use only during one time of the year.”
Read the full article here.
While some agents are concentrating on finding buyers in general, others are focusing on a special niche that could bring in more business, and at a higher price point: second homes. Focusing on selling second homes might take a little more effort, education and hustle, but in the end it can pay off – and be fun in the process. We spoke with a number of Realtors who work with second-home buyers in Chicagoland to find out how to be successful in this specialized field.
When the term “second home” or “vacation home” is mentioned, what comes to mind? Perhaps images of a lake house complete with its own boat dock or a chalet perched on the side of a ski hill. While both of these ring true, another concept that might not immediately come to mind is a high-rise condo on Michigan Avenue — yet Jean Hagerty, a Resort and Second-Home Property Specialist (RSPS)-licensed agent and luxury home specialist with Keller Williams, sells homes in the Loop and Gold Coast areas to second-home buyers on a regular basis. Seeing Chicago or another urban metropolis as a viable second-home market is a fairly newer concept, but it is indeed a growing niche and it makes sense.
Certainly Chicago’s Broadway-caliber theaters, expansive lakefront and nationally recognized dining scene help this concept along. “I love our city and what it has to offer, so for me to tout how great it is to live downtown is easy and exciting,” says Hagerty. “There is always something new going on here.”
According to Hagerty, a broad range of buyers look to buy second homes in downtown Chicago – a family with a large home in the suburbs might want a downtown getaway, or a parent will buy a child going to college a city condo with the expectation they will use it after their budding student graduates. Additionally, entrepreneurs and retired people with flexible schedules like to split their time between Chicago and someplace warm.
“Buying in Chicago is a little more deliberate,” she says. “We attract people with season tickets to ball games, the opera, the symphony. They are foodies, sports fans and cultural devotees. In other words, people who spend their time here are doing a variety of things. Some have business here frequently, some have family. The Chicago second-home buyers intend to split their time between here and somewhere else. So, it is easier to justify than a home you would use only during one time of the year.”
Read the full article here.
Wednesday, March 17, 2010
Don't let opportunity slip past unnoticed
Are you thinking about buying your first home?
Now may be a great time to make your move. For a limited time, qualified first-time homebuyers may receive a tax credit up to $8,000 as part of the extended First-time Homebuyer Tax Credit and Advance Loan Program.
If you plan to live in the home as your primary residence and have not owned a home during the past three years, you may qualify for the tax credit. As long as the home remains your primary residence for at least three years, you will not have to repay this tax credit.
Get started now!
A bit more about the tax credit
~ Available to first-time homebuyers
~ Credit amount up to $8,000
~ For any home purchase where a sales contract is signed by April 30, 2010 and closes by June 30, 2010
~ Available on single-family detached homes, townhomes, and condominiums — newly constructed or pre-existing
~ The tax credit does not need to be repaid unless the home is sold within the first three years after purchase
Now may be a great time to make your move. For a limited time, qualified first-time homebuyers may receive a tax credit up to $8,000 as part of the extended First-time Homebuyer Tax Credit and Advance Loan Program.
If you plan to live in the home as your primary residence and have not owned a home during the past three years, you may qualify for the tax credit. As long as the home remains your primary residence for at least three years, you will not have to repay this tax credit.
Get started now!
A bit more about the tax credit
~ Available to first-time homebuyers
~ Credit amount up to $8,000
~ For any home purchase where a sales contract is signed by April 30, 2010 and closes by June 30, 2010
~ Available on single-family detached homes, townhomes, and condominiums — newly constructed or pre-existing
~ The tax credit does not need to be repaid unless the home is sold within the first three years after purchase
Monday, March 15, 2010
Wednesday, February 3, 2010
Buyer Agency: A Makeover For Real Estate Agents
Buyer Agency contracts have become the norm in the State of Illinois. You already know that to sell a home, you sign a Seller’s Agreement. With all of the changes in real estate, Illinois has now provided a Buyer Agency Agreement which is used to represent buyers. Basically, as a buyer, you have the same rights that a seller does – we already provide sellers with marketing, presentation and negotiation, right? As a buyer, you need to know that you have the same right to hire an exclusive agent to represent your best interests in the transaction. The seller does pay the fee, but if you were to call the listing agent or developer directly or meet with them at an open house, their responsibility will be to the seller. You need to be represented! And you need someone in the know. So, the state is now offering exclusive buyer representation – and our clients are excited to know that means we will work exclusively for them!
Email triciafox@triciafoxgroup.com for a copy of the new agreement.
Email triciafox@triciafoxgroup.com for a copy of the new agreement.
Tuesday, January 19, 2010
Real Estate Outlook: Strong Sales Predicted
By Kenneth R. Harney, Realty Times
Will housing outperform the overall economy in 2010 as we pull out of the Great Recession?
Nothing is absolute in the predictions business, but there are solid indications that, yes, housing is likely to rebound more energetically than the overall economy.
Here's why: Even the most bearish Wall Street analysts now concede that home sales are up in many areas from year-earlier levels -- sometimes by extraordinary percentages.
For example, MDA DataQuick reports that sales in the greater Phoenix market in November were 62 percent higher than the year before.
Prices either have bottomed out in dozens of these markets or are close to it. That's because the distressed sales component of local volume - short sales, REOs and foreclosures - has been declining slowly but steadily.
In his latest forecast, Jay Brinkmann, chief economist for the Mortgage Bankers Association, says both existing and new home sales will be higher in 2010 than in 2009 - and 2009 was better than 2008.
No question that a key part of the energy in housing will be the direct result of stimulus efforts by the federal government - especially the two tax credit programs -- that will push sales and even pricing through mid year.
The overall economy, on the other hand, according to Brinkmann, is likely only to grow slowly in the first half of 2010, and not really warm up until the second half.
The heavy anchor dragging on national economic growth -- and on housing demand -- will continue to be unemployment. Brinkmann says that "the time of job destruction is over" in this cycle - that is, the number of new layoffs and new unemployment insurance claims filings are trending down.
But we haven't yet moved into the next phase nationwide - that of "job creation," which may not begin until later in the year, he says, and may be a long, slow process.
The National Association of Realtors' chief economist, Lawrence Yun, sees a strong sales year ahead - up 20 percent over 2009. In some markets, he also expects to see a return to modest and sustained price increases - anywhere from two to five percent on average.
Will higher interest rates put a big dent in these projections? Many economists are forecasting 30 year rates in the upper 5 percent range later in the year.
Those higher rates won't help - but last week they headed in the opposite direction. Thirty year fixed rates averaged 5.1 percent and 15 year rates were half a point below that - both down slightly from the week before, according to the Mortgage Bankers' national survey.
Published: January 19, 2010
Will housing outperform the overall economy in 2010 as we pull out of the Great Recession?
Nothing is absolute in the predictions business, but there are solid indications that, yes, housing is likely to rebound more energetically than the overall economy.
Here's why: Even the most bearish Wall Street analysts now concede that home sales are up in many areas from year-earlier levels -- sometimes by extraordinary percentages.
For example, MDA DataQuick reports that sales in the greater Phoenix market in November were 62 percent higher than the year before.
Prices either have bottomed out in dozens of these markets or are close to it. That's because the distressed sales component of local volume - short sales, REOs and foreclosures - has been declining slowly but steadily.
In his latest forecast, Jay Brinkmann, chief economist for the Mortgage Bankers Association, says both existing and new home sales will be higher in 2010 than in 2009 - and 2009 was better than 2008.
No question that a key part of the energy in housing will be the direct result of stimulus efforts by the federal government - especially the two tax credit programs -- that will push sales and even pricing through mid year.
The overall economy, on the other hand, according to Brinkmann, is likely only to grow slowly in the first half of 2010, and not really warm up until the second half.
The heavy anchor dragging on national economic growth -- and on housing demand -- will continue to be unemployment. Brinkmann says that "the time of job destruction is over" in this cycle - that is, the number of new layoffs and new unemployment insurance claims filings are trending down.
But we haven't yet moved into the next phase nationwide - that of "job creation," which may not begin until later in the year, he says, and may be a long, slow process.
The National Association of Realtors' chief economist, Lawrence Yun, sees a strong sales year ahead - up 20 percent over 2009. In some markets, he also expects to see a return to modest and sustained price increases - anywhere from two to five percent on average.
Will higher interest rates put a big dent in these projections? Many economists are forecasting 30 year rates in the upper 5 percent range later in the year.
Those higher rates won't help - but last week they headed in the opposite direction. Thirty year fixed rates averaged 5.1 percent and 15 year rates were half a point below that - both down slightly from the week before, according to the Mortgage Bankers' national survey.
Published: January 19, 2010
Friday, January 15, 2010
Take A Tour At Trump
Take a tour at Trump Tower with Tricia. This 3 bedroom, 3.5 bath has just been reduced in price. Now only $2,475,000!
Wednesday, January 13, 2010
What Do Real Estate Agents Do?
Real estate agents sometimes face a battle when it comes to justifying their value as a professional. Many sellers think of a real estate transaction is as simple as selling a futon on Craigslist, and are perfectly willing to try and negotiate their way out of paying for a professional service. This doesn't work well in other businesses and real estate is no exception.
Let the Tricia Fox Group show you what a difference a qualified agent can make!
Let the Tricia Fox Group show you what a difference a qualified agent can make!
Monday, January 11, 2010
2009 Mortgage Rates
Diane Swonk, chief economist of Mesirow Financial, predicted in late December 2008 that 30-year fixed rate mortgages “could go below 5%” in 2009.
The average nationwide rate of a 30-year fixed rate mortgage dropped to 4.71% on 12/03/09, an all-time record low.
(source: Money, Freddie Mac)
The average nationwide rate of a 30-year fixed rate mortgage dropped to 4.71% on 12/03/09, an all-time record low.
(source: Money, Freddie Mac)
Friday, January 8, 2010
Thursday, January 7, 2010
Trolley Tour
Join us for our first Trolley Tour of the year!
For more information or to RSVP visit our event website.
This event is for prospective clients only please.
For more information or to RSVP visit our event website.
This event is for prospective clients only please.
Wednesday, January 6, 2010
The Burj Dubai
When the world’s tallest building was inaugurated on January 4, 2010, the record books braced themselves to receive a flood of new entries.
At over 800 meters and with more than 160 floors, here are some of the essential numbers associated with the world’s tallest building:
95 – the distance in kilometers at which Burj Dubai’s spire can still be seen
124 – the floor location of "At The Top, Burj Dubai", the world’s highest and only publicly accessible observation deck with an outdoor terrace
160 – the number of luxury hotel rooms and suites
605 – the vertical height in meters to which concrete was pumped in the construction of Burj Dubai, a world record for concrete pumping
504 – the distance traveled, or ‘rise’ in meters of Burj Dubai’s main service lift, the most of any elevator
49 – the number of office floors, including the 12-floor annex
57 – the number of elevators
1,044 – the total number of residential apartments inside Burj Dubai
3,000 – the number of underground parking spaces
5,500 – the capacity in kilograms of the tower’s service lift
31,400 – the amount of steel rebar in metric tonnes used in the structure of Burj Dubai
28,261– the number of glass cladding panels making up the exterior of tower and its two annexes
15,000 – the amount of water in liters collected from the tower’s cooling equipment that will be used for landscaping irrigation
900 – the length in feet of the world’s tallest performing fountain, The Dubai Fountain, that lies at the foot of the tower
19 – the number of hectares of lush green landscaping that envelops the foot of the tower
12,000 – the numbers of workers on site during peak of construction
Monday, January 4, 2010
Home Value Loss Now but Increased Pricing Expected in 2010
By Phoebe Chongchua, Realty Times
There’s bad news and good news coming out of the housing market. Forbes Magazine released study results by Local Market Monitor that showed the cities that lost the most value are concentrated in some areas of California, Florida, Nevada, and the Northeast.
These cities were impacted by local and national factors such as increased unemployment and the rising cost of housing which resulted in homebuyers gambling on the odds of whether they could afford long-term housing.
West Coast housing markets fared the worst, losing the most value—21.6 percent since their peak. Florida housing lost 31 percent, the Northeast lost an average of 8.6 percent, and the Midwest lost, on average, 5.6 percent. The top five cities to lose value in the West (most in California): in California--Merced, (-62.11 percent), Stockton (-54.29), Modesto (-52.42), Vallejo-Fairfield (-47.62), and in Nevada—Las Vegas-Paradise (-47.53) In the South, the top five cities to lose the most value are located in Florida: Port St. Lucie (-46.43), Cape Coral-Fort-Myers (-46.38), Naples-Marco Island (-43.63), Bradenton-Sarasota-Venice (-41.52), and Fort Lauderdale-Pompano Beach-Deerfield Beach (-39.93).
In the Northeast, the top five cities to lose value are: Providence-New Bedford, R.I. (-17.30), Worcester, Mass. (-16.17), Atlantic City, N.J. (-16.15), Poughkeepsie-Newburgh, N.Y. (-14.60), and Barnstable Town, Mass. (-14.48).
Moving to the Midwest, the top five cities to lose value are in Michigan: Detroit-Livonia (-30.66), Warren-Troy-Farmington Hills (-27.95), Flint (-27.47), Ann Arbor (-20.37), and Jackson (-17.30). Source: Forbes, Francesca, Levy (12/21/2009).
According to First American CoreLogic’s LoanPerformance Home Price Index, home prices are expected to fall another 4.2 percent in 45 of the largest housing markets before hitting bottom. The Press Release states that, “The declines will be driven primarily by the large levels of foreclosures in these areas. However, improvement in both levels of inventories and unemployment are projected to prevail in the spring of next year, resulting in an average year-over-year appreciation of just under one percent by October of 2010 for these metropolitan markets.
The report also stated that, “In August 2010, the index is projecting that 12-month appreciation for national home prices will be 4.6 percent and that home prices in two of the most depressed markets, California and Florida, will show gains in excess of 7 percent.” Cities that are projected to experience the strongest recovery in 2010 are primarily concentrated in the large urban areas of California: San Francisco (+5.7 percent), Los Angeles (+5 percent), San Diego (+4.7 percent) and Sacramento (+4.6 percent).
The report cautions that a large inventory of homes owned by banks but not yet on the market could affect the increased pricing progress. Mark Fleming, chief economist for First American CoreLogic stated in a December Press Release, "We are continuing to see improvements in the year-over-year home price change as prices have remained relatively stable since April. The additional government support for the housing market has stimulated demand and restricted supply in 2009.” However, Fleming, added, “How these government supports are removed in 2010 and the moderation of pending inventory and negative equity will be critical to the continued stability of the housing market.”
There’s bad news and good news coming out of the housing market. Forbes Magazine released study results by Local Market Monitor that showed the cities that lost the most value are concentrated in some areas of California, Florida, Nevada, and the Northeast.
These cities were impacted by local and national factors such as increased unemployment and the rising cost of housing which resulted in homebuyers gambling on the odds of whether they could afford long-term housing.
West Coast housing markets fared the worst, losing the most value—21.6 percent since their peak. Florida housing lost 31 percent, the Northeast lost an average of 8.6 percent, and the Midwest lost, on average, 5.6 percent. The top five cities to lose value in the West (most in California): in California--Merced, (-62.11 percent), Stockton (-54.29), Modesto (-52.42), Vallejo-Fairfield (-47.62), and in Nevada—Las Vegas-Paradise (-47.53) In the South, the top five cities to lose the most value are located in Florida: Port St. Lucie (-46.43), Cape Coral-Fort-Myers (-46.38), Naples-Marco Island (-43.63), Bradenton-Sarasota-Venice (-41.52), and Fort Lauderdale-Pompano Beach-Deerfield Beach (-39.93).
In the Northeast, the top five cities to lose value are: Providence-New Bedford, R.I. (-17.30), Worcester, Mass. (-16.17), Atlantic City, N.J. (-16.15), Poughkeepsie-Newburgh, N.Y. (-14.60), and Barnstable Town, Mass. (-14.48).
Moving to the Midwest, the top five cities to lose value are in Michigan: Detroit-Livonia (-30.66), Warren-Troy-Farmington Hills (-27.95), Flint (-27.47), Ann Arbor (-20.37), and Jackson (-17.30). Source: Forbes, Francesca, Levy (12/21/2009).
According to First American CoreLogic’s LoanPerformance Home Price Index, home prices are expected to fall another 4.2 percent in 45 of the largest housing markets before hitting bottom. The Press Release states that, “The declines will be driven primarily by the large levels of foreclosures in these areas. However, improvement in both levels of inventories and unemployment are projected to prevail in the spring of next year, resulting in an average year-over-year appreciation of just under one percent by October of 2010 for these metropolitan markets.
The report also stated that, “In August 2010, the index is projecting that 12-month appreciation for national home prices will be 4.6 percent and that home prices in two of the most depressed markets, California and Florida, will show gains in excess of 7 percent.” Cities that are projected to experience the strongest recovery in 2010 are primarily concentrated in the large urban areas of California: San Francisco (+5.7 percent), Los Angeles (+5 percent), San Diego (+4.7 percent) and Sacramento (+4.6 percent).
The report cautions that a large inventory of homes owned by banks but not yet on the market could affect the increased pricing progress. Mark Fleming, chief economist for First American CoreLogic stated in a December Press Release, "We are continuing to see improvements in the year-over-year home price change as prices have remained relatively stable since April. The additional government support for the housing market has stimulated demand and restricted supply in 2009.” However, Fleming, added, “How these government supports are removed in 2010 and the moderation of pending inventory and negative equity will be critical to the continued stability of the housing market.”
Treasury Policy Change
By Kenneth R. Harney, Realty Times
The Obama administration announced a blockbuster policy change over the holidays that didn't get a lot of press attention, but will affect the housing market for years.
The Treasury department said it is now committed to support Fannie Mae and Freddie Mac with as many billions of dollars as is necessary to get them through the next three years. There'll be no limit whatsoever anymore.
Previously the Treasury had limited its support to $200 billion apiece for the two formerly-private, now government-controlled, mortgage finance giants.
From here on, the Treasury said in its policy announcement, there will no “uncertainty about the (government's) commitment to support the firms as they continue to play a vital role in the housing market during the current crisis.”
Though some critics howled that the Obama administration is writing a blank check, the significance of the move for real estate is potentially huge, for several reasons.
Number one: Fannie and Freddie provide funding for well over half the U.S. mortgage market -- making home sales and purchases possible for hundreds of thousands of consumers.
Number two: The fact that the two companies have an explicit, full faith and credit backstop from the U.S. Treasury means that Fannie and Freddie can borrow in the capital markets at more favorable rates. Those lower costs of capital can then be passed along - at least in part - to home loan borrowers in the form of lower interest rates.
Finally, a key reason for the policy change - which also included permission for the firms to retain larger mortgage-asset portfolios - is to help Fannie and Freddie provide deeper loan modification assistance to greater numbers of seriously troubled borrowers.
Both companies are now expected to reach out and offer loan principal forgiveness to delinquent and underwater home owners - something that the current Obama loan modification program does not permit.
Partly as a result, Obama's “Home Affordable Modification Program,” or “HAMP,” has been only minimally successful in attracting the participation of borrowers in the deepest trouble - especially those so far behind and underwater that they are walking away from their houses, sending back the keys to their lenders - and ultimately losses to Fannie and Freddie.
If the revised policy helps keep larger numbers of home owners out of foreclosure and out of walkaway mode, the impact on local real estate markets and home values could be significant over the coming couple of years.
The Obama administration announced a blockbuster policy change over the holidays that didn't get a lot of press attention, but will affect the housing market for years.
The Treasury department said it is now committed to support Fannie Mae and Freddie Mac with as many billions of dollars as is necessary to get them through the next three years. There'll be no limit whatsoever anymore.
Previously the Treasury had limited its support to $200 billion apiece for the two formerly-private, now government-controlled, mortgage finance giants.
From here on, the Treasury said in its policy announcement, there will no “uncertainty about the (government's) commitment to support the firms as they continue to play a vital role in the housing market during the current crisis.”
Though some critics howled that the Obama administration is writing a blank check, the significance of the move for real estate is potentially huge, for several reasons.
Number one: Fannie and Freddie provide funding for well over half the U.S. mortgage market -- making home sales and purchases possible for hundreds of thousands of consumers.
Number two: The fact that the two companies have an explicit, full faith and credit backstop from the U.S. Treasury means that Fannie and Freddie can borrow in the capital markets at more favorable rates. Those lower costs of capital can then be passed along - at least in part - to home loan borrowers in the form of lower interest rates.
Finally, a key reason for the policy change - which also included permission for the firms to retain larger mortgage-asset portfolios - is to help Fannie and Freddie provide deeper loan modification assistance to greater numbers of seriously troubled borrowers.
Both companies are now expected to reach out and offer loan principal forgiveness to delinquent and underwater home owners - something that the current Obama loan modification program does not permit.
Partly as a result, Obama's “Home Affordable Modification Program,” or “HAMP,” has been only minimally successful in attracting the participation of borrowers in the deepest trouble - especially those so far behind and underwater that they are walking away from their houses, sending back the keys to their lenders - and ultimately losses to Fannie and Freddie.
If the revised policy helps keep larger numbers of home owners out of foreclosure and out of walkaway mode, the impact on local real estate markets and home values could be significant over the coming couple of years.
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