Snowmageddon 2006: Will Chicago dig out?

On the eve of Snowmageddon 2006, I sit before my computer monitor and wish all the fine citizens of Chicago God speed. If reports from the radio, T.V., the Chicago Association of Realtors (which may.. gasp!.. may close offices tomorrow), and most importantly, my neighbors, are correct... we will not make it through the morning.

But don't worry... I'll be here at T-CREL HQ with my left over Y2K supplies in the basement (which consists of a can of Russian sardines and a flashlight covered in old battery acid). Call me if you must... search properties I will.


Photo of T-CREL HQ staff... Snowmageddon 2006

Check in tomorrow for HQ pics... if we make it.

Chicago Olympic Speculation

If I were a great blogger, I would certainly start a series on my favorite sport. Olympic Speculation. But I'm not a great blogger, I don't even have tags and categories yet (Blogger has not invited me for the Beta upgrade yet).

We here at T-CREL and Rubloff have already been playing this game. I mean... how cool would it be to bridge the whole area from West South Loop to Bridgeport to Hyde Park? West of McCormick mind you along Michigan Ave and surrounding. It's my dream of Lakeview South.

We've discussed how the Olympics would affect Bridgeport real estate, already on the up and up... Chinatown? Bronzeville of course. It is clear that a major change will one day hit that area west of McCormick. Will it take the Olympics?

So play along. Good discussion at Yo Chicago with actual intelligent commentary. A few of the contributers and commentators really know the inside scoop.

Chicago total sales down, prices up

The aggregate Chicagoland home sales numbers as reported in Inman... this may not affect your particular block or home, but these numbers are not bad considering the Apocolypse talk. You'll see a seasonal uptick in the spring. The market times will be longer than last season, but people still want to live here. Sell on...

From the Inman story:

"In the Chicagoland Primary Metropolitan Statistical Area (PMSA), total home sales (single-family and condominiums) totaled 9,005 in October, down 15.4 percent from 10,640 home sales in the same month last year. The median single-family home price for the Chicagoland PMSA was $242,800 last month, up 0.3 percent from $242,000 in October 2005."

Token Chicago Skyline photo coutesy of Inman News (still awesome though!)

Want a mortgage? Where do you live?

Mary Umberger reports in today's Tribune on the continuing debate surrounding credit counseling and zip codes. The IDFPR wants to curb predetory lending in certain zip codes by requiring credit counseling for those who meet a certain criteria. But many find their suggested rule will promote "redlining" of certain neighborhoods and racial orientation.

Basically, if credit counseling is to be required for consumers with bruised credit histories, it should be across the board. Although, it's hard for me to justify this requirement at all for consumers, it should cover every state citizen that meets the financial criteria. Don't stigmatize people for where they live. Read the story and tell me what you think.

Yo Chicago continues the discussion

Just mention Chicago property taxes and...

No one, and I mean no one, gets the who Chicago property tax assessment thing. Sure, I can calculate taxes based on a property's assessed value and equalize it ... but who determines the assessed value? Barry Pearce lights a fire on *"Cyber Monday" atYo Chicago , which has a great discussion in the comments concerning today's Tribune story about the sun setting on the county tax cap legislation. Why isn't this front page news? Oh yeah, Da Bears are on the front page... Nice, Chicago Tribune.

Good catch Barry.

The property tax in the most basic terms is figured out like this... Locate assessed value (according to the Modern Real Estate Practice in Illinois (5th Ed.), this is usually 1/3 of market value).

Equalize the assessed value to bring it in line with current market values. This is done by multiplying the assessed value by value. Lets say the area is under taxed by 25%. You would multiply the assessed value then by 1.25 to bring it up to market values. This can be done to lower the tax as well.

Subtract any homestead exemption ($4500 in Cook County) or Senior Citizen exemptions etc... (know your exemptions).

Now, multiply by the tax rate for that particular taxing district. This is determined by the needs of the taxing district's budget and spread out amongst all the good citizens who have the privilage of owning property in our kingdom.

In Chicago, typically your yearly tax bill will amount to 1-2% of your purchase price of the unit for new developments. Existing properties... well, that's all over the place.

For more information on Cook County property taxes go HERE

Searching Chicago Real Estate

Every client is different. Some like to search properties everyday (while at work mind you... get back to work), while others like me to narrow it down and put them in front of the places I deem worthy.

For you search-a-holics... I have a great search engine linked here and in my side bar. You can narrow your search in all kinds of ways. For instance, you can just search properties in your price point that have virtual tours. In addition, you will not receive spam from using my search engine. I only send specific, personal emails and an occasional update.

Give it a spin and then email me with the homes you like. The Internet can only tell you so much of the story. Pictures and tours can make some nice places look bad and dumps look good.

Chicago real estate weekend round up... Stories I read and you should too

It's been a nice break... although, I was never truly away. The office decided to change our email system for the better. But, we had all our files dumped into our in box. Not cool. Between digging out of that, putting up the tree, cleaning our basement and enjoying Lincoln Square I managed to read quite a bit...

Developers advised to stand out (Chicago Tribune)
Story discusses the South Loop condo market mainly. For those of you who felt it was not "neighborhoody" enough a couple years ago. Well.. there is like a billion people living there now. And the retail is pouring in. I still reccomend re-sale units for the best deals, but new is cool and there is plenty of it.

Getting busy at home
Do-it-yourself repairs can save--if you know what you're doing (Chicago Tribune)
This is a pretty fluffy article, but raises an issue that weighs heavy on the hearts of a lot of us... do I do it or get a professional? From custom blinds, to painting, to closets to faucets... do you do it? How long will it take? It might look terrible and need redoing. How do you get practice when each project is generally a first timer? Is it worth losing time from your family or your career? In my case, a simple job could take a whole day. How many clients could I have developed and consulted that day? What's it worth to you?

PAST & PRESENT
Living in a historic structure may provide perfect touch of home (Chicago Tribune)
Do you think the re-sale value is better in a historic, existing building or a recent new construction... Ceteris paribus

Economists Say the Worst Of Housing Bust Is Over (Real Estate Journal)
Chicago prices saw an average gain of 1.6%, outpacing most of the midwest.

Gen X Buyers
30% of my clients this past year were Generation X single female buyers and sellers.

Chicago mortgage rates down for the holidays

Overnight averages for a 30 year fixed mortgage dropped to 5.76% in the Chicagoland area. A friend I ran into yesterday at Starbucks in Lincoln Square (yes, the only place open to get coffee on Jillian's and my walk) asked what I thought would happen in the spring market... with sales and mortgage rates.

First, it is generally expected that there will be an uptick in real estate transactions. This is a norm for spring statistically and will also reflect those who sat on the sidelines due to the gloom and doom reporting of this year. People wanted to wait and see what was to happen. I think now, with prices stable and good inventory, those looking to buy will make a commitment this spring season. I feel the number of purchases will be smaller than last years first quarter, but better than we saw in the third quarter of this year.

Many of my clients are planning to buy in the spring and are working with me now to see what is available at their price points. Plus, if new construction meets their needs, they may have to secure a unit now so it's done by the termination date of their apartment leases. I had advised they should be ready in the winter. Again, statistically speaking, better deals can be had from winter sellers. There are less buyers watching properties due to the holidays, so less competition for quality properties that hit the market.

Early last year, predictions were that interest rates would hit the 7% mark and probably stay there for awhile. This did not happen. We now see an average rate of 5.78% today and no predictions of 7+ rates for the future.

I think we will see a spring with many buyers who have sat on the sidelines and have watched things sort out. Interest rates will hover around 6%... maybe staying sub 6 like the last few months .

John McCarron on the "slow zones"

Good column today by one of the top reporters on public planning and regional transit. One of the most striking points is each transit agency draws on their maintenance budgets for pure day to day operations... to a combined tune of $200 million in the hole.

Check out the CTA Tattler for the comprehensive news on the Chicago Transit Authority.

Real Estate and the holidays

Last week, I sent a whole bunch of emails out to clients and prospects who I have met this year. The mailing was an update concerning schedules during the holidays. It also included a couple links to reviews of my blog and information concerning my open house schedule.

Basically, I'm working. However, in the real estate sales industry, there are no clear cut rules concerning hours of work... personally or for the Realtors, brokerages, sales people and industry as a whole.

Many listing agents are just plain gone, taking the time off over the holiday. There are very few, if any, open houses following this week's Thanksgiving holiday. Unfortunately, it makes it difficult for those who are available to show properties for clients to get into the good stuff.

This year, I'm available to search properties on the Internet and answer questions for my clients. We've all discussed our schedule before hand to see who will need what. But even I have succumbed to not hosting open houses this weekend or attempting to show properties (as of Wednesday anyway).

This year, and next, I will follow the unwritten laws of the real estate market and slow it down a little during holidays. Maybe get some things done around the house... oh and there is a rehab home that needs attention. I'm working.