Friday, April 24, 2009

Chicago May Have Hit Bottom

Forbes top ten cities most likely to have not hit bottom on pricing declines. Florida takes 4 out of the top 5 and only New York in the east. Others in South and West.

Jacksonville, Fla.
Los Angeles
Las Vegas
Oakland, Calif.
San Diego
New York

As Warren Buffet has been quoted as saying, "If you wait for the robins, Spring will be over". Yet another sign you may want to consider buying in this awesome opportunity we have in Chicago

Chicago Residential Real Estate Market News and Reports

A sign of recovery? If you have to ask ‘have we recovered yet’ chances are we have not. However, by the time we know we have recovered we will have been recovered for some time. Remember we didn’t diagnose the recession until three quarters later.

Warren Buffet says, “If you wait for the robins, Spring will be over”. In my opinion, the best opportunities come at the bottom of the market cycle when depression and worry are at their peak. I’d say we are pretty close to that now.

The market is correcting itself in a healthy way. When prices inflate beyond a normal appreciation (~5% annually) the market requires corrections and that is what is happening now. Correction means opportunity. Look at the graph below and it spotlights the need for this correction (figures are national).

Once local indicator of housing pricing and recovery is to measure the absorption rate. In a healthy balanced market we could expect five to six months supply of units on the market (if no new inventory came on the market that is how long it would take to sell the current housing stock). In most areas we are well into double digit absorption rates. In many areas we are into years to absorb the current supply!

That’s the Chicago buzz for now.

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Thursday, April 23, 2009

My first mobile blog post from my phone. I am hoping to post more street level observances as related to real estate.

Featured Lakeview Chicago Condo

Welcome to affordable living in East Lakeview Chicago and Our Featured Lakeview Chicago Condo !

Absolutely stunning recently renovated 2BR condo just off of Broadway in East Lakeview at 634 W Roscoe 3S. LOCATION LOCATION LOCATION, CONDITION CONDITION CONDITION, PRICE PRICE PRICE. It's got it all. Great starter residence with an unbeatable location at this price. A Walkers’ Paradise Walk Score of 95/100. Renovated in 2001 with newer kitchen with granite countertops and a outdoor deck for summer fun. In-unit laundry and extra storage too. Clean and move-in condition. A true must see. Permit street parking a breeze or I have a rental garage option within 50 yards of this home. Low taxes and assessments are only $153 per month. Chicago Dog-friendly featured condo.

Pictures here

Directions here

OPEN HOUSE SATURDAY 4-25 from 11am to 1pm. Join us!

Visit for more information about this featured Chicago property

Call Jim at 773.252.HOME or send him a text or email today to make appointment or for more details on this great Bucktown opportunity.

Property features:

•2 Bedrooms
• 1 Full Bathroom
• Renovated residence in 2001
• Sunny top floor unit
• Granite countertops
• Updated kitchen w/ cherry cabinets
• Central heat & air conditioning
• Rear deck
• In-unit washer and dryer
• Garage rental or permit street parking
• Private storage and bike area
• Belmont Brown or Addison Red “El”
• Convenient to shops & restaurants
•$156/month low assessment!
•2007 taxes $2,609.81
•Walk Score; 95/100 Walkers’ Paradise!
•Official Dog-friendly Condo

Wednesday, April 15, 2009

Educated First Time Buyers Entering the Market

First time buyers are the primary road to recovery in this residential real estate market. 40% of market activity comes from first-time buyers and then the trickle occurs. They traditionally purchase starter homes or lower priced homes allowing those sellers to move on to buy the other home on the market freeing them up to buy another home etc etc.

The trickle effect is incredible.

And now the effect the stimulus grant of $8000 is being seen in my local real estate circle.

Buyers are seasonally of course coming out but I am seeing many new first time buyers coming into the game and loaded with knowledge and wisdom more than I've ever seen.

I am so glad this is happening in our local markets and I look forward to reaching the point in this correction where more than just first time buyers become more educated about their options and enter in the best investment one can make...real estate.

My 401K is down over 50% and my real estate investments (my primary investments) are slightly down, flat and up in this down market. I am confident in my original purchases (except one which I recently sold) and feel good about where we are heading.