Chicago Real Estate Market

Chicago real estate sale prices down? You can still come out ahead

2008-03-21T08:05:00.000-05:00

Sellers in today’s Chicago real estate market are understandably concerned that sales prices of home in Chicago neighborhoods such as Lincoln Park, Wicker Park, Logan Square and Roscoe Village are either dropping or holding steady. They’d prefer, of course, to see their homes continually appreciating in value.

No sellers are happy to learn that they could have sold their Chicago condo or single-family home for more money two years ago than they can now.

But maybe sellers are looking at this the wrong way. Yes, they may have to sell their homes for less money today. But what about the home they will purchase after they sell? They’ll be able to buy that one for less money, too. So, while they won’t make as much on their sale, they won’t have to spend as much on their purchase.

Another point: Sellers who have lived in their homes for at least five years have undoubtedly seen it appreciate in value significantly during this time, even with the current slowdown in the market.

It was unreasonable to expect Chicago real estate to continue appreciating in double digits every year. This slowdown was inevitable. The best real estate agents prepared for it, and are ready to help their clients negotiate successfully through this challenging market.

The importance of personal service

2008-03-19T07:44:00.002-05:00

We all know that the Chicago real estate market has changed. It’s taking longer for homes to sell even in the hottest of Chicago neighborhoods; places like Lincoln Park, Bucktown, Wicker Park and Lakeview.

At the same time, those selling Chicago condos, townhouses or single-family homes have to be extra careful to price their residences properly. Price them too high, even slightly, and the buyers won’t come.

It’s not impossible for a seller to do well in today’s Chicago real estate market. They just need help … from a skilled and attentive Realtor®.

That last part – attentive – is important. It’s easy to sometimes get lost in the shuffle when you’re working with a real estate agent. Realtors® are busy people. And when you’re working with a large real estate brokerage, sometimes you feel like you’re invisible. Phone calls go unanswered. E-mail messages are ignored. You hear nothing from your agent for days, maybe weeks.

That’s why I feel that in today’s challenging real estate market, it makes more sense than ever for sellers to work with a smaller real estate brokerage. Boutique firms, as we’re known, have fewer agents. But we often have some of the most dedicated ones. And because we’re smaller, we can concentrate fully on each of our clients.

You may wonder if firms such as mine, Eldorrado Chicago Real Estate, can provide the same marketing power as do some of the industry’s largest companies. The answer? Yes.

We place home listings on the Multiple Listing Service, just like the bigger companies do. Atually, we also post on Zillow, Craigslist, YouTube and other sites that many larger brokerages don’t have time to do. We advertise on the Internet and are known as leaders and early adopters of the latest technologies and advancements.

We do everything that the bigger companies do. We’re just doing it for a smaller number of clients. This, of course, means that each of our clients receives personalized service.

So if you’re preparing to sell your Chicago condo or single-family home, think about going with a boutique agency. You’ll be happy you did.

The Chicago real estate buyer-seller battle. Can we avoid it?

2008-03-17T08:03:00.001-05:00

Sunday’s Chicago Tribune had an interesting cover story focusing on the seemingly endless battle between those selling a home and those buying one.

The story brought home an unfortunate point for me: I never think it’s a good idea when Chicago real estate buyers and sellers view each other as enemies. I prefer a different approach: Buyers and sellers should be looking for compromises, ways in which to get a transaction done that will benefit everybody.

In today’s Chicago real estate market, it’s common knowledge that buyers have the upper hand. It’s taking longer for properties to sell. There is more inventory in Chicago neighborhoods like Logan Square, Old Town, Uptown, Ravenswood, Garfield Park and Portage Park. All this means that buyers have the advantage when it comes to negotiating sales price and other details in the real estate transaction.

This doesn’t mean, though, that buyers can rip-off sellers. If the seller is working with a skilled real estate agent, the Realtor® should never let this happen.

I’ve never viewed the real estate transaction as a battle. I’ve viewed it more as a negotiation, a civil one. Both parties are supposed to work out the details calmly and politely. There is always room for compromise. Move-in dates can be changed. Home repairs can be taken care of. Prices can be lowered. Most Chicago real estate transactions I handle now include at least some of these compromises.

Don’t buy into the hype. This is not the time for buyers to squeeze everything they can out of sellers. It’s the time, as always, for compromise. The best real estate deals are the ones when everyone leaves the closing table with smiles on their faces.

Not all Chicago mortgage loan officers are villains

2008-03-14T07:25:00.001-05:00

I work daily with several Chicago mortgage loan officers. And I can say that our city is blessed to have such talented, hard-working mortgage professionals working here.

I bring this up, because mortgage loan officers, not only in Chicago but across the country, have gotten a bad reputation as foreclosures have risen. Many blame mortgage professionals for persuading homebuyers to take out loans that they couldn’t afford.

It’s true, of course, that some Chicago mortgage professionals acted irresponsibly during the days of the housing boom, signing up borrowers for adjustable rate mortgages with initial interest rates that were artificially low. When the rates adjusted to more realistic ones, these homeowners found they could no longer make their monthly mortgage payments.

But the vast majority of lending professionals did not do this. The Chicago mortgage loan officers, with whom I work, act as financial advisors. They take into account a borrower’s income status and credit history before recommending a mortgage loan that makes the most sense for them.

Remember, a home is still the biggest investment that most people will ever make. And despite our current housing slump, residential real estate is still the safest way for people to grow wealth. A skilled, trustworthy mortgage loan professional can help you achieve this goal.

For those who want proof that Chicago mortgage loan officers aren’t all heartless villains, log onto BusinessWeeek Online, http://www.businessweek.com/. Once there, search for “Jose Pletz.” Pletz is featured prominently in a story by BusinessWeek reporter Maggie Gilmour about former mortgage professionals, who lost their jobs during the current housing slump, who have gone to work for housing-counseling agencies. In this case, Pletz is now working for Chicago’s very own Neighborhood Housing Services, a counseling agency that works to keep people facing foreclosure from losing their homes.

It’s in many ways a heartwarming tale. It’s also proof that the vast majority of Chicago mortgage loan professionals are goodhearted, hardworking people interested in helping people reach their dreams of owning a Chicago condo or single-family home.

Stability in the housing slump? The highest of the high-end

2008-03-12T08:18:00.001-05:00

Chicago is no slouch when it comes to million-dollar-plus properties. Just do a quick search on Eldorrado.com and you’ll see: Chicago real estate boasts some pretty pricey properties.

And that’s good news, because the very high-end of the Chicago real estate market is still attracting buyers, even during our current real estate slump.

It makes sense, of course: The wealthiest of buyers, those who can afford $3 million mansions in Lincoln Park or $6 million condos on Chicago’s New East Side, are the least impacted by the housing slowdown. They move when they want to. Not when they have to.

If you are one of the lucky few who are in the market for a million-dollar-plus property, don’t hesitate to buy. Real estate is still a great investment. Housing prices here have slowed, certainly, during the real estate slump. But they haven’t come close to crashing. In fact, in most city neighborhoods, housing prices have not only held steady during the worst of the slump, but have actually continued to appreciate.

This is good news for the rest of the housing industry. As the high-end properties retain their value, they help keep the market strong for more moderately priced homes.

So, yes, in this case, the rich getting richer truly helps our economy and the Chicago real estate market.

Should you invest in foreclosed Chicago real estate?

2008-03-10T08:42:00.000-05:00

By now, you’ve probably heard the news: The number of foreclosures in the country has reached an all-time high.

That’s undeniably bad news, and a reminder of how painful the residential real estate slump has been for many homeowners.

Chicago real estate and the state haven’t been immune. RealtyTrac, a provider of foreclosure data, reported that Illinois saw 7,807 homes fall into foreclosure in January of this year, the most recent period that the company had data for.

As the number of foreclosures rises, some of my clients have been asking whether this is a good time to invest in one of these homes. My answer? Yes. If you’re fully aware of what investing in a foreclosed Chicago condo or single-family home truly entails.

Purchasing a foreclosed home isn’t an easy task. You have to jump through several hoops that you don’t encounter when making a more traditional Chicago real estate transaction. You also might find yourself with a home in a serious disrepair, so be prepared to make some renovations once you purchase that foreclosed home. Also be ready to spend some money on attorney fees. You have to be doubly careful when purchasing a foreclosed home that there are no legal entanglements involved. You don’t want to purchase a home only to find some legal discrepancy that can find you on the hook for unpaid taxes.

My best advice? If you are interested in investing in foreclosed properties, talk first with a savvy real estate professional. I’ve worked for many years with foreclosed properties. I know the possible pitfalls and the potential rewards. Both are great.
So invest cautiously. If you make the right moves, a foreclosed property can certainly become a wise investment.

Living in Downtown Chicago: A good real estate choice

2008-03-07T07:39:00.000-06:00

You never know where you’re going to find the most interesting stories about residential real estate. For instance, the Atlantic, the monthly high-brow magazine filled with lengthy, in-depth feature stories, recently published a story about the future of far-flung suburbs.

And that future didn’t look good. That’s another reason why I’m glad to live here and sell Chicago real estate.

Let’s back up a bit: The story, writer Christopher Leinberger, highlighted the fate of a new-construction subdivision located outside Charlotte, NC. Unfortunately, 81 of the 132 homes in the subdivision had fallen into foreclosure. Vandals had defaced many of the now-vacant homes. Homeless people had begun to move in.

The suburb – filled with typical suburban new-construction homes – had become an unlikely slum.

The story pointed out that part of the blame for this falls on the subprime-lending crisis. Many homeowners in the subdivision simply could no longer afford their homes after their mortgage payments had risen. But the writer also says that suburbs located far from major cities are experiencing an even longer-term problem: The market for them is shrinking.

That’s because more people are deciding to live in cities such as Chicago. Look at what Mayor Daley has done for our downtown. He’s helped bring in new theaters, restaurants and shops. Downtown Chicago, which had been losing luster for years, is once again the hip place to be. This has a ripple effect: The Chicago neighborhoods sprouting off from downtown, the South Loop, West Loop, Uptown, Ravenswood, Lincoln Park, Logan Square, Old Town and so many others, are booming, too.

The Atlantic story predicts that in the not-so-distant future, we’ll see a large surplus of suburban homes just waiting for buyers. And the people who live in these houses, located a long commute from any major city, will be the buyers who can’t afford anything else.
I’ve always been a fan of urban living. And no city does urban living as well as Chicago. If you’re looking to buy a Chicago real estate, check out the offerings in downtown and its nearby neighborhoods. You’ll be surprised at what you find. And your property will almost certainly increase in value.

Chicago spring is almost here: Time to start selling

2008-03-05T07:42:00.000-06:00

It’s been a tough winter in Chicago. Personally, I can’t stand the sight of my snow shovel any longer.

But the calendar has flipped from February to March. You know what that means, spring is almost here. Now, spring means a lot of different things. To me, though – and to anyone who has a Chicago condo, townhouse or single-family home to sell – it should mean one thing: Time to get that house on the market.
Spring is traditionally the busiest time of the year for home sales. And that holds true in Chicago real estate, too.

I know we’ve all been bombarded with the bad news: Home sales are down across the country. Housing prices are dipping. Buyers are taking forever to make offers on even reasonably priced homes in good locations.

But remember one thing about all this bad news: Just because it’s happening in California or Florida or Arizona, doesn’t mean it’s happening in Chicago.

Yes, Chicago real estate sales have dipped, but not nearly as badly as they have in other parts of the country. And even better news for people trying to sell Chicago condos or single-family homes: The value of properties in Chicago and its suburbs has remained steady. Many Chicago properties have even seen their values rise during the worst of the housing slump.

So if you are waiting to put your Chicago condo or single-family home on the market, the time is now. The buyers will be out. You just have to be ready for them.

Buying Chicago real estate? The bargains are out there!

2008-03-03T07:24:00.000-06:00

I’ve often written that now is one of the best times that I can remember to buy Chicago real estate.

The reasons are many: The prices on Chicago condos, single-family homes and townhouses are at reasonable levels. There is a large inventory of these homes on the market, meaning that buyers have more Chicago condos or single-family homes to choose from. And sellers are motivated, willing to compromise on everything from sales price to closing dates.

Now, there’s even more reason, according to a Feb. 1 story in the Chicago Tribune by writer Susan Diesenhouse. She writes about the host of incentives that developers are offering to buyers looking to purchase downtown Chicago condos..

Developers are offering buyers thousands of dollars in finishes for no cost. They are lowering costs. They are throwing in free crown molding, higher-quality appliances or even paying buyers’ taxes or assessments for a year.

This is the silver lining in the real estate slump we’ve been reading about now for more than a year. Because buyers have been skittish during the Chicago real estate downturn, developers have had to get creative in places like the West Loop and South Loop, neighborhoods which have seen a lot of new condominium construction in the last few years.

If you’re thinking of buying in these areas, look forward to some nifty financial incentives. If you’re working with a skilled real estate agent, you may be able to knock a significant amount of dollars off the sales price. You may be able to get those higher-end finishes at no extra cost. If you and your agent are really savvy, you may even live tax-free for a year or more.

Again, this is a great time to buy Chicago real estate. And the incentives that developers are offering in prime Chicago neighborhoods, is just one more example.

What will you do with your check?

2008-02-29T07:29:00.000-06:00

It’s official. You will soon be receiving a check from the government.

In the hopes of heading off a recession, the federal government is mailing taxpayers bonus checks this year. Depending on your income, marital status and number of children, you could receive $1,200 or more from Uncle Sam.

So, what are you going to do with that extra money?

If you’re a homeowner trying to sell a Chicago condo or single-family home, my advice would be to spend that money on your home.

Here’s why: The Chicago real estate market is more competitive than ever. Buyers are choosy these days. They want the best house for their money, and they’re more willing than ever to pass on homes that have even minor problems.

That $1,200 check can buy your Chicago condo bedrooms a fresh coat of paint. It can help pay for a new window in the kids’ room, new carpeting in the second-floor hallway or new water purifying system. It can help you present your home in its best light.

We’re fortunate to live in the Chicago real estate market. The market here has remained steady even during the worst days of the nation’s housing slump. But even so, the market for Chicago condos and single-family homes has changed: It’s a buyers’ market now. That means that the owners of Rogers Park townhouses, Logan Square condos, Lincoln Park real estate and property owners throughout the city have to do everything they can to spruce up their residences.

So take that check from the government and invest it wisely. You’ll be happy when your Chicago property begins attracting compliments from pleased potential buyers.

Buck the trend: Make your home a palace!

2008-02-27T09:04:00.001-06:00

The National Association of Home Builders last week held their annual convention. One of the more interesting pieces of news from the event was that the sluggish housing market is also slowing down the home-remodeling industry.

Basically, owners are putting off home renovation and remodeling projects until the Chicago real estate market improves.

In my opinion, this is the wrong way to go. Owners, especially those who own Chicago condos or single-family homes, would do well to tackle their home-improvement projects now. The Chicago real estate market is not going to remain sluggish forever. In fact, I’ve already seen signs that the market is already beginning its recovery. It makes sense, then, to finish those home-renovation projects now. That way, when it’s time to sell, your home will look its best.

It’s easy to look at the home-selling business now and throw up your hands. But think of the advantage you’ll have as the buyers come back if your home has those new kitchen cabinets you were considering, that updated bathroom or that expanded master bedroom.

Don’t hold off on that remodeling project simply because you fear that the market for Chicago condos and single-family homes isn’t yet strong enough. The market is steady – and has remained so even during the worst of the housing slump – and will only get stronger. Finish those remodeling duties now. You’ll be glad you did.

The power of pricing for Chicago real estate

2008-02-25T07:16:00.001-06:00

People often ask me what most helps sell Chicago real estate. I never hesitate: Setting the right price.

Setting a fair price, one that allows the seller a healthy profit without gouging any would-be buyers, is the single most important factor in helping a Chicago condo or single-family home sell quickly.

Too often, sellers insist on asking too high a price for their Chicago condo or single-family home. What happens then? The home sits on the market for months, before its owners lower the price to a more reasonable one. All this does is waste everyone’s time.

But owners who set the right price – one that’s supported by comparative home sales in the immediate area – find that their home sells far more quickly.

Setting the right price, though, can prove challenging. How do you know what to ask for your home? My advice: Work with a talented Chicago real estate agent.

Most homeowners struggle to set an asking price for an obvious reason: They’re emotionally attached to their residences. It’s hard to set a value on the home where your children grew up, where you hosted family gatherings and where you sat down to dinner every night.

Your Chicago real estate agent, though, is unbiased. They analyze your home, the surrounding neighborhood and current market conditions. Then they recommend the price point that will result in the fastest sale.

So if you are putting your Chicago condo or single-family home on the market, resist the urge to ask too much for your property. Once you do set that right price, you’ll be glad you did.

Some optimism regarding the Chicago real estate market

2008-02-22T09:27:00.000-06:00

It’s been hard to find lately, but there are some financial experts out there who do have some optimism when it comes to the Chicago real estate market.

And for those of us owning Chicago condos and single-family homes, that’s especially good news: Anything good about the national housing market is doubly good for us. That’s because the Chicago real estate market is generally steadier than other markets. Chicago condo and single-family home values, for instance, have held up better than similar units across the nation even during the worst days of our housing slump.

The latest financial pro to express optimism about the housing market is none other than Ben Bernanke, Federal Reserve Chairman. Bernanke last week predicted that the Fed will make fewer interest-rate cuts in the immediate future. Why? Because the Fed’s previous interest-rate cuts should bring serious positive benefits to the nation’s economy in the second half of 2008, he said.

Now, not everyone agrees with this. Some would like to see the Fed make more aggressive rate cuts to continue to spur the economy. But the fact that the Fed sees brighter times ahead is good news to all of us, especially those of us selling residential property in the already stable Chicago real estate market.

Get ready, sellers. I think we can look forward to the start of a Chicago area recovery later this year.

Chicago Real Estate Owners: Avoid Foreclosure Scams

2008-02-20T08:24:00.000-06:00

Sometimes the radio and T.V. come-ons are hard to ignore: A reassuring voice promises instant relief to Chicago real estate owners facing foreclosure or those who are falling behind on their monthly mortgage payments.

Just make the call, and your worries will melt away, the advertising spots promise.

Don’t listen.

I’ve heard from many owners of Chicago condos and single-family homes who are worried about falling behind in their mortgage payments. With so many adjustable-rate and interest-only mortgage loans resetting, it’s no surprise that more Chicago real estate owners are suddenly facing higher monthly payments. Many of these owners just can’t make the payments.

But calling one of those foreclosure-rescue companies you hear from on the radio is the wrong move.

If you’re falling behind in your mortgage payments, or even if you’re worried that you might, call your mortgage lender. Your lender will work with you to devise some solution that will allow you to keep your home.

Trust me, no Chicago mortgage lender benefits from foreclosures. Lenders want you to keep your house. They want you to keep sending them your monthly mortgage payments.

I know it’s hard to call anyone when you’re facing financial difficulties. But make that call. The longer you wait the worst the situation becomes.

And, remember, when you’re making that call, don’t dial the number of one of those radio or T.V. scam artists.

How much Chicago real estate development is too much?

2008-02-18T08:32:00.000-06:00

It’s an exciting time in Chicago’s Logan Square neighborhood, the home base of Eldorrado Chicago Real Estate. Construction crews have been busy building new condominium projects throughout the neighborhood.

The positive effects are many: New construction brings new residents. This means new businesses and higher property values. It’s what many of us hope for whenever we buy a condominium or single-family home in any Chicago neighborhood.

But as the new buildings rise, some ask the obvious questions: How much development is too much? And are new homes being built too quickly?The Chicago Tribune, in its Feb. 17 Real Estate section, ran an interesting story on the current condominium building boom in downtown Evanston. According to the story, developers have brought 1,584 new condominium units to Evanston in the last five years. That’s a lot of building, and it has helped pump new life into the Chicago suburb.

But some quoted in the story worry that all this new construction, happening so quickly, will drive away older businesses, bring too much traffic and congestion and cause Chicago real estate prices to skyrocket too high.

These are all legitimate worries. They are the same worries that many residents in Chicago’s South Loop neighborhood have, too.

Developers, aldermen and city officials need to perform a careful balancing act whenever they approve new residential or commercial projects in a Chicago neighborhood. For instance, it’s important that developers not overbuild. No one benefits when condominium towers sit largely empty months after their construction. And it’s equally important to put these new residential units in the right location: The building boom in Evanston, and Logan Square, too, makes sense largely because many of the Chicago real estate projects are rising in areas that are already set aside for high-density development.

To sum up, I love seeing new condo buildings coming online in Logan Square and the other Chicago neighborhoods I serve. New residential projects can revitalize sluggish neighborhoods and add even more life to neighborhoods that are already thriving. Yes, we do have to be careful about over-developing any single neighborhood. But carefully planned development helps everyone.

Chicago real estate: It’s not all bad

2008-02-15T08:20:00.000-06:00

The REALTOR® Association of NorthWest Chicagoland held its annual economic forecast in early February. About 200 real estate agents filled the room, eager to hear some good news, any good news, really, about the Chicago real estate and the suburban market.

Fortunately, the good news came early, from Geoffrey Hewings, an economist at the University of Illinois, who delivered the day’s first speech, one focusing on the state economy and its impact on the Chicago real estate market.

I won’t lie: Hewings, who works for the Regional Economics Application Laboratory at the University of Illinois, had plenty of grim statistics. But he also had some good news for those selling Chicago condos and single-family homes.

First, Hewings emphasized that the housing downturn will continue to be far less severe in Illinois this year than it has been in other parts of the country. I’ve written about this before: Residential real estate is local. Just because housing prices and sales are plummeting in California and Florida, doesn’t mean they’ll do the same in Chicago. In fact, sales of Chicago single-family homes and condos remain steady, even as the national housing market slumps.

Next, Hewings reported that job growth in Illinois last year, while not stellar, exceeded job growth in the rest of the Midwest. Hewings also said that statistical evidence suggests that though the economy in the state is not at its strongest, Illinois is not in the midst of an actual recession.

Hewings’ talk, while realistic about the state of the housing market, should give all sellers hope. Yes, the residential real estate market in Chicago and its suburbs is weaker than it was just a year-and-a-half ago. But there are positives for the owners of Chicago condos, townhouses and single-family homes. People still need to buy homes, no matter what the rest of the nation’s housing sales are. And when it’s time to buy, these people will purchase in Chicago and its suburbs. It’s a great place to live.

Chicago real estate transfer tax increase a bad move

2008-02-08T08:43:00.000-06:00

Many outside forces can impact, both positively and negatively, our Chicago real estate market. Unfortunately, a proposed tax increase has the potential to cause serious damage to Chicago’s home-selling industry.

Members of Chicago’s City Council are poised to vote for a 40-percent increase in the real estate transfer tax on Feb. 6. The Illinois Association of Realtors®, of course, opposes this increase. A group of Chicago real estate agents and housing advocates held a press conference on City Hall on Jan. 31 to protest the increase.

The increase will help fund the CTA’s pension plans. Legislators have to get creative: There are other ways to fund this. Why hurt everyone who will buy a Chicago condo or single-family home?Kay Wirth, president of the Illinois Association of Realtors®, sums it up well on the association’s Web site: “We question why Chicago homebuyers will have to shell out several hundred or thousands of dollars more for a CTA pension plan while many of those homebuyers do not themselves have a guaranteed pension.”

If you’d like to learn more about this misguided proposal, visit www.wrongtax.com.

Buyers already pay a hefty set of fees when purchasing a house. They don’t need any more. Here’s hoping that City Council members will come to their senses and not approve this unnecessary, and harmful, transfer tax boost.

Home swapping: A solution that’s TOO creative

2008-02-06T08:24:00.000-06:00

I know Chicago real estate market has slowed down. And I know this leads some sellers to search for creative solutions.

But house swapping is not the best way to go, especially if you’re selling a Chicago condo, single family home or townhouse.

If you haven’t heard of house swapping, here’s how it works: Sellers who can’t move their residences find other sellers in the same situation. The owners then swap their homes, agreeing to buy each other’s properties. There are a handful of online sites that help owners do this.

To me, this seems like an overly drastic solution. In a house swap, owners will most likely have to settle for a home that doesn’t fit their ideal. If these same owners would work with a Chicago real estate professional to set the right price for their home, it will sell. In this slower market, it just requires patience. Owners can then work with their Realtor® to find that ideal home for them.

If you’re selling in the Chicago real estate market, there is absolutely no need to resort to something as drastic as house swapping. The area market – especially in solid neighborhood like Lincoln Park, Lakeview, Ravenswood and many others – is still strong. Sellers are still getting fair offers for their homes. It may take longer to sell a Chicago condo or single family home, but these properties are still moving.

So don’t resort to drastic solutions. Price your house right. Work with a Chicago real estate agent who will market your home aggressively. Be patient. Do this, and you will sell your home for a good price.

Will there be a post-Super Bowl rush?

2008-02-04T07:38:00.000-06:00

The Super Bowl is over. Football season has ended. That means one thing to me: It’s home buying season!

Traditionally, home sales pick up in earnest following Super Bowl weekend. Buyers are no longer distracted by the holidays. The end of winter is in sight. Buyers with families who want to be in a new home shortly after the end of the school year need to get serious about their home search.

In most years, this is the perfect storm that stirs up home sales.

Here’s the question, though: With the slower residential real estate market, will the owners of Chicago condos and single-family homes see the traditional sales rush following the big game?

I’m an optimist when it comes to the strength and resiliency of the Chicago real estate market, so my answer is an unqualified “yes.”

If you’re a regular reader of this blog, you know that my faith in the Chicago real estate market has never wavered, even when the national media runs story after story focusing on the country’s real estate troubles. Chicago isn’t California or Florida or Arizona. Home sales in neighborhoods like Lakeview, Lincoln Park, Logan Square, Bucktown and Wicker Park are holding steady. Prices are still strong.

To me, that means one thing: We’ll see even more buyers now that February is here. And when March comes, there’ll be even more.

So if you’re waiting to put that River North condo on the market or holding onto Ravenswood two-flat, don’t hesitate any longer: Put your property on the market. If you price it right, the buyers will come.The Super Bowl is over. Football season has ended. That means one thing to me: It’s home buying season!

Traditionally, home sales pick up in earnest following Super Bowl weekend. Buyers are no longer distracted by the holidays. The end of winter is in sight. Buyers with families who want to be in a new home shortly after the end of the school year need to get serious about their home search.

In most years, this is the perfect storm that stirs up home sales.

Here’s the question, though: With the slower residential real estate market, will the owners of Chicago condos and single-family homes see the traditional sales rush following the big game?

I’m an optimist when it comes to the strength and resiliency of the Chicago real estate market, so my answer is an unqualified “yes.”

If you’re a regular reader of this blog, you know that my faith in the Chicago real estate market has never wavered, even when the national media runs story after story focusing on the country’s real estate troubles. Chicago isn’t California or Florida or Arizona. Home sales in neighborhoods like Lakeview, Lincoln Park, Logan Square, Bucktown and Wicker Park are holding steady. Prices are still strong.

To me, that means one thing: We’ll see even more buyers entering the Chicago real estate market now that February is here. And when March comes, there’ll be even more.

So if you’re waiting to put that River North condo on the market or holding onto Ravenswood two-flat, don’t hesitate any longer: Put your property on the market. If you price it right, the buyers will come.

Chicago real estate sales slower, but still strong, in 2007

2008-02-01T07:29:00.000-06:00

Was 2007 a bad year for the Chicago real estate market? It all depends on how you read the market.

The Illinois Association of Realtors® last week released its year-end report on housing sales in Chicago and the rest of the state. Agents in 2007 sold 92,656 Chicago condos, single family homes and townhouses. That’s a lot of residential real estate changing hands.

Now, it’s true that agents sold more area homes in 2006. In that year, agents sold 116,527 Chicago condos, townhouses and single-family homes. That’s 20.5 percent more than in 2007.

But does that make 2007 a terrible year? No. It makes it a normal year.

In 2006, we were still in the middle of an unprecedented residential real estate boom. The sales numbers we were seeing then, and in the early 2000s, were not sustainable. That’s why it was called a “boom.”

Whenever you have a series of record-setting years, as we did in the early 2000s, the years immediately following them have to see some decrease in the amount of sales activity. It’s inevitable.

Is it fair, then, to call 2007 a horrible year for Chicago real estate? I don’t think so. The year that passed was solid. And I predict that 2008 and 2009 will be even stronger.

Chicago Real Estate Prices Still Strong

2008-01-30T05:58:00.001-06:00

Anyone needing more proof that the Chicago real estate market remains strong, despite the downtown in the national housing industry, needs only turn to the latest report released by the Illinois Association of Realtors®.

The association released its year-end statistics last week, and it confirmed what I’ve always known: Chicago condos, single family homes and townhouses are still great investments.

Despite all the housing and mortgage troubles you’ve been reading about for months, the average sales price of Chicago area homes came in at $254,000 in 2007. That’s up 2.4 percent from the average sales price of $248,000 in 2006.

This is good news to anyone who owns a home in Chicago and its suburbs. Your real estate investment is still appreciating. Yes, your home’s value is no longer skyrocketing by double-digit percentages. But that kind of price increase was never viable. Be happy that housing in Chicago is largely immune to radical ups and downs of many markets across the country.

And if you’ve been hesitant to enter the Chicago real estate market, take a look at those year-end numbers from the Illinois Association of Realtors®: If home values here continued to rise even during one of the worst years in memory for properties, just think of how much they’ll go up during the better years that are sure to follow.

What the RIGHT agent should do for you

2008-01-28T06:47:00.000-06:00

Chicago real estate buyers have one great fear: They don’t want to pay too much for that Lincoln Park condo, Uptown townhouse or Rogers Park single-family home.

The best Realtors® will guarantee that you won’t overpay for any residence in Chicago or its suburbs.

I bring this up because I’ve been following an intriguing controversy in California. A couple who purchased a home in San Diego for $1.2 million is suing their real estate agent because, the couple says, he allowed them to overpay for their new residence.

The couple discovered shortly after moving into their new home that a house just up the street from them had sold for $105,000 less than what the couple had paid for their property. This house was the same size as the couple’s home. They then discovered that a second house that sold around the same time went for $175,000 less.

The case was scheduled to go to court today. I’ll be watching closely to see what the legal system says.

The truth is that the main job of any agent representing buyers is to make sure his or her clients pay a fair price for their new home. I and all the buyers at my firm, Eldorrado Chicago Real Estate, make that a priority.

Skilled agents study recent home sales in an area. They compare transactions involving similar houses, all to find the right asking price for their buyers. Agents representing the seller are supposed to do the same thing, to make sure their clients aren’t asking either too much or too little for their homes.

This is often more art, than science. But more often than not, skilled agents hit upon the right price for a home.

It’s one of the top reasons why Chicago real estate buyers and sellers should work with a real estate professional. No buyer wants to pay too much for a home. No seller wants to ask too little. Realtors® - the good ones - make sure neither of these mistakes happens.

Chicago Real Estate Sales Dip, But Don’t Crash

2008-01-25T08:00:00.000-06:00

I, and many of my fellow real estate professionals, believe that the media have exaggerated the struggles of the housing industry. But there’s one number that we can’t deny: Home sales are down, across the country and in the Chicago area.

But where real estate pros and members of the media differ is in defining what these dipping sales numbers mean.

First, let’s look at some local numbers: According to the Illinois Association of Realtors®, homes sales of Chicago condos and single-family homes came in at 5,772 in November of last year, the last month for which the association has data. That figure is down 23.9 percent from the same month one year earlier.

The media considers this a housing slump. I think of it as a housing correction.

During the housing surge of the early to mid-2000s, real estate agents were selling an unprecedented number of condos and single-family homes. Sellers entertained multiple offers on a regular basis. It was a great time to be selling residential real estate.

But as great as it was, this market was not sustainable. It had to slow down eventually.

Now, it has. The market is returning to a more normalized one, including here in the Chicago area. What does this mean? It means that sellers have to be more careful to price their homes properly. It means they have to be willing to entertain buyers’ requests regarding closing dates, home repairs and possible price reductions.

In other words, it means the Chicago real estate market is back to the way it has operated in the vast majority of years.

We may yearn for the boom times, but that doesn’t mean the current market is a bad one. It’s just different, healthy but different.

The Power of Online Real Estate Listings

2008-01-23T10:39:00.000-06:00

At first, the story doesn’t seem to have much to do with Chicago real estate: An online news site has reported that the Chicago Tribune will soon offer fewer classified ads in its print version and instead send readers to on online classified site it owns.

The story, written Jan. 21 by MediaPost Publications’ Erik Sass, reports that the Tribune is hoping to save on newsprint costs by directing readers to CareerBuilder, an online classified site it owns with newspaper companies Gannett and McClatchy. This decision is expected to help the Tribune save a significant amount of money in printing costs.

It’s also an example of a growing trend: According to the MediaPost story, revenues from newspaper classified listings fell 13.2 percent, 16.4 percent and 17 percent during the first three quarters of 2007.

What does this have to do with residential real estate? It mirrors, in many ways, the way in which consumers used to look for houses for sale and the way in which they do it now.

In the old days, Chicago homebuyers would turn to the real estate listings in local newspapers to find their homes. Now, in greater numbers than ever, they’re turning first to the Internet, to sites such as mine, www.eldorrado.com, to find Chicago condos and single-family homes.

This means that anyone trying to sell a Chicago condom or single-family home had better have a significant presence on the Internet. It’s also why it’s such a challenge for owners to sell their homes without the help of a licensed agent. For-sale-by-owner homes aren’t listed on Realtor.com, the most popular of the real estate search sites.

If you are selling a Chicago condo or single-family home, make sure you’ve staked out your chunk of the Internet. Otherwise, you might find selling a bigger challenge than you imagined.

Chicago Real Estate Prices on the Rise … Still

2008-01-21T07:13:00.000-06:00

I’ve always said that you can’t rely on national home sales numbers to understand what’s happening in your local housing market. This is especially true of the Chicago real estate market.
If you’re a buyer or seller, you’re fortunate to live in Chicago or its suburbs. Even during the worst of the nation’s housing slump, prices on Chicago condos and single family homes have remained steady: We’ve not seen either the skyrocketing highs of the country’s coasts or the dizzying drops that have followed.

Sales data recently just released by the Illinois Association of Realtors® affirms this. In November of last year – the last month for which the association has data – the average sales price of a home in the Chicago area, including its surrounding suburbs, came in at $323,458. That figure is up 4.4 percent from the same month one year earlier.

See? if you’ve read the papers you’ve heard nothing but bad news regarding the country’s housing market. But in Chicago, the average home is once again worth more than it was one year ago. This proves my point that Chicago real estate is still a great investment.

So be careful when listening to the negative voices out there: Residential real estate in Chicago and its suburbs is still appreciating. If you’re an owner, be happy about that. And if you’re planning to buy, be even happier: You’ll be putting your dollars into what I still believe is the safest investment available.