The Chicago 77

As seen in previous months, home buyers have pushed the market by taking advantage of historically low interest rates, 2004 pricing and the first time home buyer tax credit. Yet home prices continue to be soft because of distressed properties and competition with other properties in this higher inventory market.

20 November 2009 –Bonds opened up nearly unchanged at positive 3 bps to a current day change of 0 bps. Of the $1.25 trillion allotted to Mortgage Backed Securities, $1.023 trillion have been purchased. The Fed announced that it will unload a record $44 billion in 2-Year notes, $42 billion in 5-Year notes, and $32 [...]

19 November 2009 ? Sussex & Reilly’s former owners, Glenn Tomlinson, Elizabeth Scheffler, and Donald Battaglia have filed a lawsuit against Ravenswood Bank. The bank engineered the sale of the brokerage to competitor Sudler Sotheby’s in February. The suit alleges that the bank improperly declared S&R’s loans in default in order to force the sale [...]

18 November 2009 ? Concert promoter Jam Productions Ltd has added another music venue to its growing portfolio. On Tuesday, the historic Uptown Theater, located on the 4800 block of north Broadway, was purchased for $3.2 million in a court ordered foreclosure sale. The sale must be court approved, however Jam does not expect any [...]

17 November 2009 ?In real estate there are typically three types of buyers: a buyer upgrading to a larger home, an investor, or a first time home buyer. The National Association of Realtors® has come out with new statistics ? 50% of the purchases this year have been in the first time home buyer category. [...]

Many homeowners have very valid concerns about the impact of a neighbor who has a comparable unit but is selling their property at a rock bottom price. When a neighbor sells at a very low price because of a new baby, job transfer, or other situation, the impact on the immediate market value of comparable units can be significant, but not necessarily devastating.

16 November 2009 –Bonds opened up at a positive 3bps today to a current day change of 28bps.  Investors have patiently awaited Federal Reserve Chairman Ben Bernanke?s 12:15 EST talk concerning the economy and its future.  Bernanke?s speech highlighted the indication that most economists expect moderate economic growth in the next year, but unfortunately not [...]

I don?t understand why some agents are taking their listings off the market until after the new year. According to the Illinois Association of Realtors, 37% of home buyers are new to Chicago. Nearly half of these home buyers are first-timers who are eager to cash in on the federal tax credit.

16 November 2009 ? Based on sales numbers for the last two years, the inventory level for new construction units in Downtown Chicago is at a six year level. This factor has postponed several new developments and has also resulted in many new buildings being converted to rental properties. Sales could be accelerated if developers [...]

13 November 2009 ? Price reductions continue to drive the real estate market. According to Trulia, 25% of homes for sale this year have seen a price drop of 10% off the original listing price. Luxury homes only make up 2% of the listing inventory but they continue to be one of the hardest hit [...]

Miami-based luxury high-rise developers Crescent Heights put Cityfront Place under contract for $83 million and the deal is supposed to close this month. This acquisition is the first downtown apartment building to sell in over two years which is a good indicator that the rental market might rebound before any other division in the housing market.

12 November 2009 ? Bank of America seems to have its hands on many troubled Chicago real estate developments, including Block 37 and the Chicago Spire. Most recently, the developer of the Spire, Shelbourne Development Group, has accused the bank of using a faulty method for calculating interest on their loans. It is fairly standard [...]

11 November 2009 ? The Three Arts Building located at 1300 N. Dearborn may be turned into what some are calling the Midwest?s largest columbarium.  Don?t? have a dictionary handy? This columbarium will have enough space to store the ashes of up to 15,000 dearly departed residents. Built in the early 1900?s, and designated a [...]