I'm a big walker. And I'm a big believer in planning cities (read-suburbs) with downtown areas that promote living and working in close proximity. With today's service and information economy, it is more possible than ever.
The editorial/opinion column below addresses this issue in a fun way, if not in very simple terms. The author fails to speak of the economic and governmental differences that dictate city planning to some extent. But city planning and how we live and interact is a great topic for discussion.
With the Dan Ryan construction project starting at the time of this writing, it's as good a time as ever to question our driving tendencies.
Friday, March 31, 2006 Inman News]]> We Americans are a puzzling bunch. We travel to Italy, France or Spain and come back smitten with the charmingly walk-able streets, close-knit houses, and humanly scaled public spaces we find there. Yet we seldom stop to wonder why our own built environment is so utterly lacking in those traits.
It's no mystery: In spite of rising population and dwindling resources, America remains saddled with long outdated planning ideals that are the furthest thing from the European examples we admire so much.
America is a vast nation, and perhaps in consequence, our planners and engineers have historically been trained to think big. This tendency has produced some magnificent civil engineering projects such as railways, dams and bridges. Yet it hasn't been nearly so successful at the scale of human habitation.
Thanks to the megalomania of our traffic engineers, for example, American cities are among the least pedestrian-friendly in the world. Each year, larger and larger swaths of urban and suburban land are paved over with ubiquitous six-lane thoroughfares bristling with redundant arrays of traffic signals. Aside from creating barren, monotonous and alienating cityscapes, such roads are also daunting barriers to people on foot, no matter how many kinds of whiz-bang pedestrian signals we install. Rather than drawing our cities together, our roads tear them apart, providing one more incentive for Americans to drive instead of walk.
Ironically, in the dwindling number of places where human-scaled roads still remain, city engineers are even now scrambling to widen them, always with the specious objective of easing congestion. Yet as both traffic studies and common sense can easily confirm, this so-called improvement is pure bunk. The only thing America's incessant street widening programs really do--aside from keeping paving contractors in clover--is to invite even more automobile traffic.
Europeans are notably less obsessed with road widening. Unlike us, they recognize that the difficulty of negotiating their picturesque streets in a car is a blessing in disguise: It makes people prefer to take public transit, or to simply live within walking distance of their jobs. In short, Europeans design their cars to suit their cities, whereas we design our cities to suit our cars.
As for our homes, the much-adored human scale of European villages is all but unheard of in suburban America. This is no accident, either--our neighborhoods can't help but be coarsely scaled, since our moribund zoning regulations typically still insist that houses be surrounded by useless strips of setback land.
The custom of spacing buildings far apart may have made sense a hundred years ago, when America was an agricultural nation and land was cheap and plentiful. Yet that day is long past. With today's usual practice of shoehorning huge tract homes into postage-stamp building lots, the resulting sunless, 10-foot-wide gap left between houses has only one function: to let developers fetch higher prices by continuing to sell their units as "single-family detached."
In older European towns, by contrast, even houses in wide-open rural areas are often clustered together in villages, their walls adjoining. The cumulative savings in otherwise useless setback land can then be devoted to public space that actually has some purpose.
The need to prize every little scrap of land has been central to Europe's way of building for centuries. But it's a lesson we Americans have yet to learn. When it comes to our professed admiration for Europe's charms, we talk the talk, but we sure don't walk the walk.
Friday, March 31, 2006
Consumer confidence not an oxymoron
Friday, March 31, 2006 Inman NEWS:
Consumer confidence rose in the latest survey largely due to gains among households with incomes above $50,000, and the majority of consumers expect the Federal Reserve to continue to raise overnight interest rates, according to the University of Michigan's Survey of Consumers.
"Higher-income households much more frequently reported that their finances had improved and more frequently anticipated further gains during the year ahead," according to Richard Curtin, director of the survey.
Three out of four consumers in the March survey said they expected continued interest-rate hikes, and consumers emphasized the importance of price discounts to their buying plans for everything from homes, to vehicles, to household appliances and furniture. The discounts were seen as critical to offset the higher costs of credit, according to the survey.
While personal consumption expenditures are expected to grow by nearly 3 percent during 2006, new residential investment is expected to decline. "The critical issue is how much of the weakness in the home market spreads to other purchases via reduced cash-outs of home equity," said Curtin. The size and frequency of cashouts depend on changes in home prices and mortgage rates, with changes in both expected to limit cash-outs.
The index of consumer sentiment was 88.9 in the March 2006 survey, between the 86.7 recorded in February and the 92.6 recorded in last March’s survey. The index of consumer expectations, a closely watched component of the index of leading economic indicators, rose to 76 in March, slightly ahead of the 74.5 in February, but well below the 82.8 recorded in March of 2005. The current economic conditions index was 109.1 in March, up from 105.6 in February and 108 in March of 2005.
The March gain in the sentiment index among households with incomes above $50,000 was 5.1 index points, while among households with incomes under $50,000, the sentiment index fell by 0.4 index points.
"Upper income households were half as likely as lower income families to report that their financial situation had been significantly weakened by higher prices, and higher income households were three times as likely to anticipate increases in their real incomes during the year ahead," Curtin noted. The gap in financial prospects between those households with above median incomes and below median incomes has never been wider during the past decade.
There was evidence of a growing belief across all households that the pace of economic growth would slow in the second half of 2006. "Despite the expected slowdown in the pace of growth, most consumers do not expect bad economic times, but they do anticipate that the unemployment rate will begin to inch upward," according to Curtin. Half of all consumers in the March survey expected an economic downturn sometime during the next five years, however.
Source: Inman News
Consumer confidence rose in the latest survey largely due to gains among households with incomes above $50,000, and the majority of consumers expect the Federal Reserve to continue to raise overnight interest rates, according to the University of Michigan's Survey of Consumers.
"Higher-income households much more frequently reported that their finances had improved and more frequently anticipated further gains during the year ahead," according to Richard Curtin, director of the survey.
Three out of four consumers in the March survey said they expected continued interest-rate hikes, and consumers emphasized the importance of price discounts to their buying plans for everything from homes, to vehicles, to household appliances and furniture. The discounts were seen as critical to offset the higher costs of credit, according to the survey.
While personal consumption expenditures are expected to grow by nearly 3 percent during 2006, new residential investment is expected to decline. "The critical issue is how much of the weakness in the home market spreads to other purchases via reduced cash-outs of home equity," said Curtin. The size and frequency of cashouts depend on changes in home prices and mortgage rates, with changes in both expected to limit cash-outs.
The index of consumer sentiment was 88.9 in the March 2006 survey, between the 86.7 recorded in February and the 92.6 recorded in last March’s survey. The index of consumer expectations, a closely watched component of the index of leading economic indicators, rose to 76 in March, slightly ahead of the 74.5 in February, but well below the 82.8 recorded in March of 2005. The current economic conditions index was 109.1 in March, up from 105.6 in February and 108 in March of 2005.
The March gain in the sentiment index among households with incomes above $50,000 was 5.1 index points, while among households with incomes under $50,000, the sentiment index fell by 0.4 index points.
"Upper income households were half as likely as lower income families to report that their financial situation had been significantly weakened by higher prices, and higher income households were three times as likely to anticipate increases in their real incomes during the year ahead," Curtin noted. The gap in financial prospects between those households with above median incomes and below median incomes has never been wider during the past decade.
There was evidence of a growing belief across all households that the pace of economic growth would slow in the second half of 2006. "Despite the expected slowdown in the pace of growth, most consumers do not expect bad economic times, but they do anticipate that the unemployment rate will begin to inch upward," according to Curtin. Half of all consumers in the March survey expected an economic downturn sometime during the next five years, however.
Source: Inman News
Thursday, March 30, 2006
Buying tips music to my ears
When I meet home shoppers at my open houses or online, I try to communicate certain aspects that will provide a smooth process. The number one thing I plead new clients to do is meet with their bank or a good mortgage broker before looking at places. When this subject is brought up, many first time buyers who just started looking respond that they have not met with anyone, but will when they get serious.
This is backward thinking. To get serious, you must work with your bank and mortgage broker to fine tune your finances. Understanding your finances, the loan products available, the price point you may purchase in, and the homes available at that range will provide you a much better experience.
The story written below is a fantastic third party view of what I'm talking about. So, when we work together, you know I will be very adament about your understanding and executing the steps involved in home buying. You will find a home you will love and that will help you on the road to a better financial position. But you must be ready to go for it when that home comes along. I'll prep you for sure.
Monday, March 27, 2006 Inman News]]> If you postponed buying a home during recent years, or found yourself unable to buy due to fierce competition from other buyers, now could be the window of opportunity you've been waiting for. Interest rates, although gradually rising, are still low. And, generally, the inventory of homes for sale is increasing.
The first step is to find out how much you can afford to pay by talking with a mortgage broker or lender. Knowing your price range will help you to determine whether you can afford to buy a single-family residence or a condominium. Condos tend to be less expensive. Your price range will also dictate the neighborhoods in which you'll be able to buy.
HOUSE HUNTING TIP: It's wise to get pre-approved for the mortgage you'll need to complete the purchase. In order to get pre-approved, you'll need to complete a loan application and have your credit checked. This takes time so if you aren't already hooked up with a mortgage person, interview several before you go through the pre-approval process.
Ask each person you interview to explain your mortgage options. There are countless mortgage products available, but some are riskier than others. Find a mortgage broker or loan agent who will take the time to explain the pros and cons of the various mortgage options in words you understand.
Pre-approval can make a big difference in your negotiations with the seller. Recently, an Oakland Hills, Calif., seller received two outstanding offers. One was accompanied by a pre-approval letter that included underwriting approval from the lender and verification of the buyers' funds for the down payment and closing costs. The second offer was presented with a letter from the buyers' mortgage broker that didn't include underwriting approval and was subject to verification of the buyers' funds needed to close. The sellers accepted the first offer.
The next step is to find a good real estate agent. This doesn't necessarily mean the agent who sells the most property. Your agent should be ethical, professional, trustworthy and diligent, and should specialize in the area where you want to live. Other key attributes are good negotiation skills and a willingness to commit time and attention to your needs.
It's helpful to prepare a wish list of all the features you'd ideally like in a home. Share this list with your agent and get feedback on how realistic it is. Buying a home will inevitably involve compromise. Fine-tune the list after you have incorporated your agent's input. Determine which items on the list are must-haves and which ones you can do without.
Now you're ready to start your search. How long this will take depends on what you're looking for and whether it's readily available.
In areas where there is a glut of listings on the market, you'll have an easier time finding a home and there will be more opportunity to negotiate on the price and terms.
In low-inventory markets, you may find yourself in competition. However, unlike last year, it appears that multiple offers in today's market aren't necessarily boosting the price considerably over the asking price.
Where inventories are skimpy, you'll have more success if you relax your search parameters and broaden your horizons. For instance, you might look in more than one area or be more flexible on the architectural style you're willing to accept.
Don't overlook listings that have been on the market for a while. The sellers might be open to negotiating. And keep an eye open for price reductions. Most buyers concentrate on listings that are new on the market.
THE CLOSING: A better deal might be made on a listing that isn't drawing a lot of attention.
Dian Hymer is the author of this column
This is backward thinking. To get serious, you must work with your bank and mortgage broker to fine tune your finances. Understanding your finances, the loan products available, the price point you may purchase in, and the homes available at that range will provide you a much better experience.
The story written below is a fantastic third party view of what I'm talking about. So, when we work together, you know I will be very adament about your understanding and executing the steps involved in home buying. You will find a home you will love and that will help you on the road to a better financial position. But you must be ready to go for it when that home comes along. I'll prep you for sure.
Monday, March 27, 2006 Inman News]]> If you postponed buying a home during recent years, or found yourself unable to buy due to fierce competition from other buyers, now could be the window of opportunity you've been waiting for. Interest rates, although gradually rising, are still low. And, generally, the inventory of homes for sale is increasing.
The first step is to find out how much you can afford to pay by talking with a mortgage broker or lender. Knowing your price range will help you to determine whether you can afford to buy a single-family residence or a condominium. Condos tend to be less expensive. Your price range will also dictate the neighborhoods in which you'll be able to buy.
HOUSE HUNTING TIP: It's wise to get pre-approved for the mortgage you'll need to complete the purchase. In order to get pre-approved, you'll need to complete a loan application and have your credit checked. This takes time so if you aren't already hooked up with a mortgage person, interview several before you go through the pre-approval process.
Ask each person you interview to explain your mortgage options. There are countless mortgage products available, but some are riskier than others. Find a mortgage broker or loan agent who will take the time to explain the pros and cons of the various mortgage options in words you understand.
Pre-approval can make a big difference in your negotiations with the seller. Recently, an Oakland Hills, Calif., seller received two outstanding offers. One was accompanied by a pre-approval letter that included underwriting approval from the lender and verification of the buyers' funds for the down payment and closing costs. The second offer was presented with a letter from the buyers' mortgage broker that didn't include underwriting approval and was subject to verification of the buyers' funds needed to close. The sellers accepted the first offer.
The next step is to find a good real estate agent. This doesn't necessarily mean the agent who sells the most property. Your agent should be ethical, professional, trustworthy and diligent, and should specialize in the area where you want to live. Other key attributes are good negotiation skills and a willingness to commit time and attention to your needs.
It's helpful to prepare a wish list of all the features you'd ideally like in a home. Share this list with your agent and get feedback on how realistic it is. Buying a home will inevitably involve compromise. Fine-tune the list after you have incorporated your agent's input. Determine which items on the list are must-haves and which ones you can do without.
Now you're ready to start your search. How long this will take depends on what you're looking for and whether it's readily available.
In areas where there is a glut of listings on the market, you'll have an easier time finding a home and there will be more opportunity to negotiate on the price and terms.
In low-inventory markets, you may find yourself in competition. However, unlike last year, it appears that multiple offers in today's market aren't necessarily boosting the price considerably over the asking price.
Where inventories are skimpy, you'll have more success if you relax your search parameters and broaden your horizons. For instance, you might look in more than one area or be more flexible on the architectural style you're willing to accept.
Don't overlook listings that have been on the market for a while. The sellers might be open to negotiating. And keep an eye open for price reductions. Most buyers concentrate on listings that are new on the market.
THE CLOSING: A better deal might be made on a listing that isn't drawing a lot of attention.
Dian Hymer is the author of this column
Monday, March 27, 2006
Mortgage rates holding
The Chicago Association of Realtors reports avergae 30 year fixed mortgage rates at 6.07% by days today. Not bad. If your close to a decision on a place, this could be a good week to lock in your rate for up to 60 days without paying an outrageous rate lock fee.
Rates have been holding steady, but mortgage bankers and real esates economists predict the dreaded 7% by the end of the summer. Just remeber this spring that there are great properties going on the market, sellers are reasonable, and rates are still low.
Rates have been holding steady, but mortgage bankers and real esates economists predict the dreaded 7% by the end of the summer. Just remeber this spring that there are great properties going on the market, sellers are reasonable, and rates are still low.
Sunday, March 26, 2006
Bucktown: When it feels right
The Bucktown area has been one of the hottest neighborhoods this spring. It seems the properties here have sold faster than most. My clients have experienced this lately. On several occassions, a well placed and priced unit in this area has sold before they had a chance to look at it.
It isn't an exact science, but a good Realtor can sense a steal. When the stars are lining up-- my client likes the place, the price is good in market terms, the seller is motivated and the seller's agent is handing over information that favors my buyer (yikes!), --a Realtor you trust usually can negotiate a fair transaction.
Look, it's not my job to tell you what to like. But there will be times that I suggest a unit is well laid out, has certain valuable features, and is in a great location. Taste is one thing, quality entirely different.
So take heed if you view a home in Bucktown that looks good and feels right, make a move. There is always the inspection period and several contingencies left to protect your interest. Because a good unit probably won't be there tomorrow. Or worse, you'll find yourself in a multiple offer situation!
The moral: Make sure you have mapped out your mortgage product and understand the expenses involed in buying a home. This will enable you to move fast when the right home comes along.
It isn't an exact science, but a good Realtor can sense a steal. When the stars are lining up-- my client likes the place, the price is good in market terms, the seller is motivated and the seller's agent is handing over information that favors my buyer (yikes!), --a Realtor you trust usually can negotiate a fair transaction.
Look, it's not my job to tell you what to like. But there will be times that I suggest a unit is well laid out, has certain valuable features, and is in a great location. Taste is one thing, quality entirely different.
So take heed if you view a home in Bucktown that looks good and feels right, make a move. There is always the inspection period and several contingencies left to protect your interest. Because a good unit probably won't be there tomorrow. Or worse, you'll find yourself in a multiple offer situation!
The moral: Make sure you have mapped out your mortgage product and understand the expenses involed in buying a home. This will enable you to move fast when the right home comes along.
Wednesday, March 22, 2006
Wine Tasting Tonight! Wednesday, March 22nd 7PM
Tonight we'll take a moment to thank clients and to discuss the options of future home buyers and sellers. There are no presentations, just a casual evening with wine and appetizers. But the opportunity to talk realistically about a home purchase and the process involved is invaluable. This is our way of making a sometimes streesful process a little easier.
Hope to see you.
Because the event is at a private residence, please call for more details.
Eric Rojas
773-510-1597
Hope to see you.
Because the event is at a private residence, please call for more details.
Eric Rojas
773-510-1597
Sunday, March 19, 2006
Client Testimonial: Music to my Ears
Thanks for the kind words!
I met my client Jeremy at an Open House and, as a result, had me represent him in his first real estate transaction. As an orthopedic surgeon, with a busy work and travel schedule, Jeremy needed response to his irregular hours. I'm glad he appreciated the access and instant communication during the home purchase process. Ask me about Jeremy's transaction, and about any other of my clients, to learn about the experience that will help you next.
A+
-Jeremy S.
I met my client Jeremy at an Open House and, as a result, had me represent him in his first real estate transaction. As an orthopedic surgeon, with a busy work and travel schedule, Jeremy needed response to his irregular hours. I'm glad he appreciated the access and instant communication during the home purchase process. Ask me about Jeremy's transaction, and about any other of my clients, to learn about the experience that will help you next.
(Reprinted with client permission)
"Eric was my Realtor- he helped me buy my first condo. He was tremendously helpful at every step- he only showed me the types of property I was intetested in (all within my price range), he helped me negotiate a great price, walked me through escrow, and sat with me at the closing table".A+
-Jeremy S.
Thursday, March 16, 2006
Real Estate Rates Simmer Down
I'm watching rates... they may go up as the year goes on. But, there is still time to take advantage of historically low mortgage rates. This spring will allow buyers to bargain hard, but sellers take heart; nice properties are in demand and good rates will be had on your next place.
Thursday, March 16, 2006
Long-term mortgage interest rates continued lower Wednesday, and the benchmark 10-year Treasury bond yield gained to 4.73 percent.
The 30-year fixed-rate average dipped to 5.91 percent, and the 15-year fixed-rate sank to 5.59 percent. The 1-year adjustable was down at 4.88 percent.
The 30-year Treasury bond yield increased to 4.75 percent.
Rates are current as of 7:15 p.m. Eastern Standard Time.
Thursday, March 16, 2006
Long-term mortgage interest rates continued lower Wednesday, and the benchmark 10-year Treasury bond yield gained to 4.73 percent.
The 30-year fixed-rate average dipped to 5.91 percent, and the 15-year fixed-rate sank to 5.59 percent. The 1-year adjustable was down at 4.88 percent.
The 30-year Treasury bond yield increased to 4.75 percent.
Rates are current as of 7:15 p.m. Eastern Standard Time.
Real Estate Rates Simmer Down
I'm keeping an eye on rates... they will be higher as the year goes on, but there is still time to get historically low mortage interest rates.
Thursday, March 16, 2006
Long-term mortgage interest rates continued lower Wednesday, and the benchmark 10-year Treasury bond yield gained to 4.73 percent.
The 30-year fixed-rate average dipped to 5.91 percent, and the 15-year fixed-rate sank to 5.59 percent. The 1-year adjustable was down at 4.88 percent.
The 30-year Treasury bond yield increased to 4.75 percent.
Rates are current as of 7:15 p.m. Eastern Standard Time.
Thursday, March 16, 2006
Long-term mortgage interest rates continued lower Wednesday, and the benchmark 10-year Treasury bond yield gained to 4.73 percent.
The 30-year fixed-rate average dipped to 5.91 percent, and the 15-year fixed-rate sank to 5.59 percent. The 1-year adjustable was down at 4.88 percent.
The 30-year Treasury bond yield increased to 4.75 percent.
Rates are current as of 7:15 p.m. Eastern Standard Time.
Monday, March 13, 2006
1141 West Patterson... Hottest Development in Wrigleyville
I opened a new development of ours this weekend at 1141 West Patterson. It was absolutley the busiest open house I have had this season. The location is a stones throw from Cub's Park, but actually sits on a quiet one-way street. During game days, Chicago's finest re-directs traffic around the street.
Five units with four different floor plans. Two duplex-downs with radiated heat floors, a duplex penthouse, a simplex penthouse, and a simplex two bedroom, two bathroom. I ran the comps last night for interested buyers and found there is nothing else like it. The two Penthouse units have everything... 3 bedrooms, garage parking, top finishes (still selectable) private roof top rights (huge!), interesting floorplans, multiple decks, location, location, location.
If you review my blog, I have not really been this excited about one of our developments. The difference was the response from buyers taking a look. Most came directly from viewing one of our various advertisements suggesting specific demand for brand-new construction in Wrigleyville.
These will go fast. In fact, I have had a request to review the builder's contract already. Again, the big difference is the energy surrounding this place. Many times I work with clients in which many, many units have everything they want... making the decison tough. These units are truly unique, if not for the lay-outs alone, but location and roof top views in a truly historic neighborhood.
I'll be there next weekend as well and hope the buyers I met this weekend will capatalize on the opportunity. It's a no brainer this time.
Five units with four different floor plans. Two duplex-downs with radiated heat floors, a duplex penthouse, a simplex penthouse, and a simplex two bedroom, two bathroom. I ran the comps last night for interested buyers and found there is nothing else like it. The two Penthouse units have everything... 3 bedrooms, garage parking, top finishes (still selectable) private roof top rights (huge!), interesting floorplans, multiple decks, location, location, location.
If you review my blog, I have not really been this excited about one of our developments. The difference was the response from buyers taking a look. Most came directly from viewing one of our various advertisements suggesting specific demand for brand-new construction in Wrigleyville.
These will go fast. In fact, I have had a request to review the builder's contract already. Again, the big difference is the energy surrounding this place. Many times I work with clients in which many, many units have everything they want... making the decison tough. These units are truly unique, if not for the lay-outs alone, but location and roof top views in a truly historic neighborhood.
I'll be there next weekend as well and hope the buyers I met this weekend will capatalize on the opportunity. It's a no brainer this time.
Subscribe to:
Posts (Atom)