Chicago's Sue

Every once in a while I like to go back and revisit old posts and see if there are still relevant or thoughts of the moment. This post still rings true and truer for both buyers and sellers: Telltale Signs Your Listing Broker is a Dinosaur. Meeting with new clients recently, I have been getting asked some questions as a result of statements of other real estate agents they have interviewed have made to them. Folks, this is 2010!

Home Sellers

• A new listing or price change is like breaking news. It no longer matters what time or day a listing is entered into the MLS. What is important is that the listing needs to be entered with complete information including great remarks, professional photos, a virtual tour, and where sites allow a video. The first impression is the most important. The MLS and the Internet are  now the first showing.
• Reaching the most buyers is not only about what the brokerage does to expose listings, but what the agent does with the listing. A listing agent?s vernacular now needs to include such terms as interactive marketing, listing syndication, SEO, and listing enhancement. Being on the MLS does not equal  marketing a home.
• Its back to basics in many aspects of marketing homes. An example are open houses which are becoming key again. If the buyer?s agent hasn?t scheduled a viewing of the property, the buyer will go themselves.

Home Buyers

• Reaching the home buyer is no longer dependent on the Realtor®. Buyers should be on automated searches from the agent and the client can interact with online applications such as Listingbook. This will give buyers live access to new listings, price changes, and pending sales. Because of this, listing agents need to be more concerned with reaching the client directly with a quality listing presentation.
• Knowing the local inventory is more important than ever. What is the impact of foreclosures and short sales on pricing in that particular neighborhood? How do you weigh those factors the value of a property when submitting an offer on behalf of a buyer? Distressed properties are no longer something that any real estate professional can refer to as something they don?t deal with. They are a factor in our market place.
• The issues that agents used to wait until they got the buyers under contract need to be asked upfront especially about condominiums associations. The status of an association can be the difference if the buyer can qualify for financing for the property or not.
• The question to the client is not just what are you qualified to spend, but what are you comfortable spending at the end of the month after mortgage, taxes, and assessments.

I have been in this business for over a decade now. I don?t do business the way I did 10 years, 5 years ago, or even a year ago. Both real estate market conditions and the tools of our industry keep moving forward so I am as well. It is called being a professional. That is what my clients deserve.

We would like to thank Susan Renee for kindly sharing today’s photo via the Creative Commons License.

It?s That Time of the Month Again: October?s Housing Numbers

The Illinois Association of Realtors® released its sales numbers for October 2009. Winners include the increasing quantity of units sold over the same period last year, but sellers continue to be the losers as the median price of a home has significantly declined in the year over year analysis.

Home Buyer Tax Credit Has Helped With Sales

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. The following figures demonstrate the effects of these two factors. According to IAR, 2,012 single family homes and condominiums in Chicago sold at a median sales price of $215,000 last month. In comparison, 1,566 units sold at a median price of $262,500 in October 2008. While the number of homes sold grew by 28.5% over this period, the median price nevertheless decreased by 18%.

Second Time Home Buyer Tax Credit Expected to Move Inventory

Current home owners, who wish to purchase a new residences, and the market as a whole will benefit from the extension and expansion of the tax credit to second-time home buyers. As the number of units sold each month continues to increase, inventory is starting to be absorbed and pricing appears to be stabilizing. The variables for this market equation, however, rests upon unemployment figures and bank-owned real estate. Other variables that have affected pricing include new Federal Housing Authority guidelines and regulations. A FHA spot check and other FHA modifications should work in the favor of first time home buyers. In the Chicago real estate market, The $417,000 limit on conforming loans will continue to negatively affect property sales in the $500,000 to $1,000,000 range. Limited and more costly financing options will hinder buyers in this price range. In many parts of the country the conforming loan limit is $729,000.

We would like to thank MACSURAK for sharing today?s photo via the Creative Commons License.

I am optimistic about the last six weeks of the year. My listing inventory continues to grow but I am running around with more buyers. Momentum is gaining. But I don?t understand something: Why are agents taking their listings off the market until after the new year?

If It Is Not Listed?..

If your home is not on the market, there is no opportunity to show it to potential buyers. People looking to buy today are among the best qualified and most motivated. But some Realtors and sellers who think removing their property from the market may be making a big mistake. Taking a property off for 45 days, to hide the length of time your home was initially on the market, is not going to increase your property value anymore in January or February. Based on short sale and foreclosure reports, re-listing your property in 2010 could make your home be worth even less. Distressed properties will continue to impact residential resale just as much as ongoing price reductions by developers.

According to the Illinois Association of Realtors, 37% of home buyers are new to Chicago. If you remove your listing, you are missing one in three of your potential purchasers. Nearly half of these home buyers are first-timers who are eager to cash in on the federal tax credit. Moreover, these buyers often wish to move quickly into their new home in the new city. Few of these people are concerned about buying during the holiday season. With very little inventory coming on the market right now, this may be your best opportunity to sell your home for the best and highest price.

Holiday Mode

I am feeling a sense of defeat from some agents who encourage their clients to remove their homes from the market during the holidays. It seems that they have decided the market is going too slow and they don?t wish to be bothered. Being a professional Realtor® is like being a professional ball player. You got to keep your eye on the ball and follow through. Real estate is a 24/7, 365 days a year business. If your agent is reluctant to list your property, I am sure there are many others who would be happy to help you. You cannot sell a secret!

We would like to thank adjustafresh for sharing today?s photo via the Creative Commons License.

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 drop their prices, give better incentives, or offer financing. Because of the declining market, many buyers who purchased condos pre-construction are strategically renegotiating their contracts prior to closing. The challenges for those buyers are mounting since they cannot qualify for FHA mortgages conventional financing until 50% of the units have closed.

6 November 2009 ?As home buyers, sellers, Realtors® and affiliated professions await the signing of the expanded Home Buyer Tax Credit by the President, buyer options continue to narrow. According to the regional MLS, MRED LLC, there are 26% fewer homes under $800,000 on the market today than in October of 2007. While single family homes sales in Chicago have increased by 46% in this two year time frame, condo sales have seen a 15% decline over the same period. The added benefits of the housing credit include an increase in income limits and purchase prices as well as a $6,500 tax credit for current homeowners who are in the market to buy.  To receive the credit, those homeowners must have lived in their current homes for five of the last eight years.

2 November 2009 ? As we finish up 2009, pricing is the focus to make the sales happen before the end of the year. Even developers are taking their hits as Belgravia Group announced reductions of more than 10% on their remaining townhomes at one of their developments in University Village. Bluestone Development has continued to lower prices on their Fletcher Row Townhomes Development in the Hamlin Park/Roscoe Village neighborhood as well as offer buyer financing and incentives. As developers begin taking substantial price changes, there is more pressure on residential resale property values. Home sellers are now competing with new construction in addition to short sales and foreclosures. The average and median home sale prices continue to rise as buyers are going forward on homes in higher price ranges where pricing has been greatly adjusted.

30 October 2009 ?Agreed Does Not Mean Passed -

There is much optimism that the tax credit for first time home buyers will be continued into next year. Although the Senate has agreed on an extension and expansion of the program, it has not yet passed. As with any piece of legislation, the housing tax credit is tied to other bills being debated. For those in support of extending the program, you still need to contact your congressman on this issue. According to the Illinois Association of Realtors, 45% of homebuyers in Chicago have been first time buyers.

More Housing Numbers ? Different Data, Same Message

Being that it is the fourth Tuesday of the month, today is the day Standard and Poor releases its Shiller-Case housing numbers. They looked at month to month numbers versus the Realtor® Association who basis their findings on a year over year period. According to their statistics, this month?s Case-Shiller home price indices is reporting improved readings for seven months in a row. Essentially, this new report reflects similar data to last month?s figures.

What this means for the Chicago Real Estate Market

When Case Shiller talks about ?Chicago? they are using the Chicago Metropolitan Statistical Area or MSA which, defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will. Keep in mind Chicago?s 77 neighborhoods are thrown in with Joliet and Rockdale Junction in terms of these statistics. With that being defined, they are reporting that Chicago saw an increase in home prices from July 2009 to August 2009 of 1.7%, but a 12.7% decline of year over year prices.

No matter who is pulling the data and how they chart it, the message is the same ? first time buyers and jobs. ?Broadly speaking, the rate of annual decline in home price values continues to improve? says David M. Blitzer, Chairman of the Index Committee at Standard & Poor?s. ?While many of the markets remain down versus this time last year, the relative rate of decline has shown some real improvement. We see this general trend whether you look at the as-reported data or the seasonally adjusted figures.” But Blitzer cautions that “We do want to remind people of the upcoming expiration of the Federal First-Time Buyer?s Tax Credit in November and anticipated higher unemployment rates through year-end. Both may have a dampening effect on home prices.”

We would like to thank gkristo for sharing today?s photo via the Creative Commons License.

26 October 2009 ? With the good news last week with the number of homes sold in September up the Chicago Tribune is reporting that more people are staying in Chicago as well as returning. The mass exodus to the suburbs and warmer climates has been greatly reduced as a result of the recession and the current real estate market. Besides the housing market, jobs have been key in retaining and recruiting residents to the city. “It’s good, but only because something terrible happened,” noted William Testa, regional economist at the Federal Reserve Bank of Chicago.

According to a recent Harris Poll, Chicago residents are the most stressed out in the United States as a result of the lack of balance in their lives. This can also be effected by which side of the city you live in. A map study finds South Siders to be agreeable, North Siders neurotic.

23 October 2009 ?For buyers who want to take advantage of the First Time Home Buyer Credit that expires November 30th, 2009, this weekend is probably your last chance to get under contract to meet the deadline. The National Association of Realtors® has been lobbying on behalf of their members to extend and expand the tax credit program. Overall, the program had a positive effect on the housing market including those related to trades and professions associated with housing transactions. Some are directly involved in the transaction such as the Realtor®, lender, title company, appraiser, inspector and attorney. Others are at arm?s length like, the handyman, plumber, contractor and home stores that get the benefit of what the new buyer needs to buy for their new home. Unfortunately there are always a few who try and get what they are not entitled to leading to Congress to look at questionable claims.