Chicago: Still A Great Investment

Over the past year or so the Chicago 2016 Olympic Committee under Mayor Daley's leadership has been running around putting a funding package together to move Chicago forward to make it "Olympic Ready". Being the knocked out in the International Olympic Committee's first round stunned most but everyone has to remember that Chicago is still the same great city that made it to the final rounds.

All the same reasons that so much private money was raised to fund the Olympics had they happened remain as to why Chicago is still the same great city for moving many of the plans forward. We obviously don't need the game venues but we look at the opportunities for jobs, housing and transportation. The redevelopment plans of many of the neighborhoods need to just be tweaked but are still viable.

Chicago already is one of the best cities. We need to continue to grow our commercial, residential and tourist opportunities. If you have never been here before, explore Chicago.

Chicagoans should remain as resourceful as they have been in the past and move forward, not stop. We need to leave the door open and work towards so many of the other global opportunities we can bring to the city.

Price Changes Continue to Drive the Market

In the first week of the Fall 2009 real estate market 26% of the homes currently listed for sale in the United States had price reductions according to Trulia. This is the fourth month in a row that there has been an increase of price reductions taken. Locally, Chicago's active listings saw an average price decrease of .4% last week. List prices are down overall 18.5 % compared to last year.

With sellers aggressive sending out the message they want to sell by lowering prices buyers have been re-engaging in the market place. Many Realtors®are getting more showings on the listings resulting in multiple offers in some cases. With the decreases in the price of market rate properties, many buyers are opting not to go after distressed properties to avoid issues that can arise in short sale and foreclosure transactions such as undetermined closing dates and the cost of fixing up the properties.

Some sellers are opting to remove their homes from the market rather than sell at a further reduced price. The question remains as to how long will they have to wait it out. A few who have to move are trying to rent their homes in an over saturated rental market. Rental pricing is not always meeting the monthly expenses on the properties.

If the property is priced more than that local market can bear it still won't sell even with the price reductions. When putting together offers, buyers and their agents are basing it all on the last three closed comps in the last 90 days.

To follow Chicago Area Listing Inventory and keep up to date on new listings and price changes click here

Buy or Rent? Buying is Starting to Make Financial Sense Again

Originally Posted on Chicago's Real Estate Blog, The Chicago 77, June 29 2009

This week’s Crain’s Chicago Business (PDF) is reporting that the relative cost of owning vs. renting is swinging back in favor of home ownership across the U.S. and in Chicago. The Chicago real estate market is already seeing signs of this with an increase in pending home sales. There are great expectations that June’s sales numbers will finish off what should be a strong second quarter. Realtors® see this trend continuing as many of their buyers have reengaged and are actively looking at properties and going forward with offers. Tire kickers have become purchasers. As sellers have been adjusting their prices, buyers have making repositioning themselves regarding financing. Borrowers are expanding their lending options, taking advantage of the $8000 tax credit and creating greater equity in their purchase with larger down payments.

Past and Present

For many weeks now, the showings on homes have increased. The potential buyers coming through listings seem to be highly qualified both financially as well as in their commitment to buying a home. Sellers have made their adjustments to the market and buyers are taking notice. As a real estate practitioner, the art of the deal keeps evolving but I am busy working with clients in the buying and selling of homes. There is no longer anytime to sit back and have the discussion what happened to the market because I am busy working. Contracts are being negotiated. This is my market indicator.

As someone who relies on the RSS feeds for news as I am running around throughout the day coming to my blackberry via Google Reader or Twitter, I see some positive market indicators and them some negative. When I sit down at the end of the day and read the postings all the way through, I see much of the negative is old news, reports that are coming out with first quarter data. In this dynamic environment, 60-120 days ago is not a measure of what is happening now. We can use some of that information as guidelines for our offers but that was then and this is now.

Values in the Marketplace: Lakeview Single Family

The opportunites for buyers are all throughout the Chicago real estate marketplace. This home at 1342 W Melrose sold for $1,550,000 in 2005 and is currently listed for $1,499,900. It is quality throughout featuring a Deguilo Kitchen, incredable master suite breezeway to the garage.

Click on the photo for a tour of this home:

This property is exclusively listed by:

Chaz Walters, Hot Property®

Sudler Sotheby's International Realty