Category: Loft Buyers

Year to date sales up over 37% in Cook County

Posted by michaelhulett in Loft Buyers, Loft Sellers Thursday, 29 July 2010 10:07 No Comments

Say it isn’t so! Well it is:) According to the Illinois Association of Realtors, the Cook County year to date sales in June of 2009 were 16,101 homes sold. That same figure through June of this year is 22,109 for whopping 37.7% increase in sales this year! Now don’t get too excited, we had a few contributing factors that really created the increase, or should I say last years decrease. The first half of 2009 was arguably the lowest point in American consumer confidence since The Depression. Consumers were not buying homes, car, or clothes. The net effect of such a dramatic decrease in spending helped create a back log of potential buyers that spilled into the 2010 market. In addition, the homebuyer tax credit that expired this spring had a significant impact on the market. Let’s face it – if you weren’t fired by end of first qurter 2010, then chances are decent that you may be spared. As these jobs became more secure, buyers began to grow confidence. The thought of purchasing began to appeal to consumers once again. Also assisting was the tax credit timeline. Buyers had to be under contract by April 30th 2010. This created a sense of urgency long gone from the real estate market.
 
I know what you’re thinking – prices are going up! Not exactly. We still have a significant amount of inventory and there simply is no quick fix for that. An optomistic jobs market will eventually stabilize real estate. In regards to inventory, by most accounts it has been declining. These numbers however are based on actual market data. The reality is that many sellers have remained on the sidelines waiting for a recovery in price before selling. In fact, many can not sell today due to the fact that they would have to bring money to the table to close. With interest rates at near 40 year lows, many hokes to choose from, low prices, and growing consumer confidence it appears that the worse is over. While I don’t see the “boomerang effect” coming anytime soon (a sudden increase in demand therefor price) it does appear logical that we are headed for a slow but sustained recovery. Sellers – sorry, I don’t see prices going up by any measureable amount in the near future. Buyers – someday you’ll probably look back and say “what a deal”!
 

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The Multple Offer is Back

Posted by michaelhulett in Loft Buyers, Loft Sellers Wednesday, 31 March 2010 20:49 No Comments

This is not a typo, or a re-tweet circa 2005. We’ve noticed an odd phenomenon this spring… multiple offers. There’s a trend developing here and it actually makes perfect sense. The formula is as simple as the perfect storm: the buyer pool is slowing increasing + buyers are tiring quickly of distressed properties and their associated problems + the number of desirable properties that are priced aggressively is limited. Hence multple offers on quality homes.  Here’s what they all have in common:

A.) Neighborhoods that have steady traffic. Let’s face it, some neighorhoods have faired much better than other during the fall. Frankly we were a little surprised to be involed in 2 multiple offers in Rogers Park alone over the past 3 weeks.

B.) Pricing that is very competitive given the immediate comparable properties. This offers immediate value and if there is ONE thing today’s buyers respond to, it’s value.

C.) Properties that show very well.  It’s always been one of two critial elements for every seller (the other being price). In today’s market, how a home shows is more important than ever.

Of course, I wouldn’t exactly call it a HOT market right now but these are certainly signs that the industry, and perhaps economy, are moving in the right direction. My advice still hasn’t changed… If you’re selling – price and show on the mark. If you’re buying - look for the place you love and negotiate hard to get the best deal you can. Happy house hunting!!


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Posted by michaelhulett in Loft Buyers Monday, 15 March 2010 09:22 No Comments

Effective February 1, 2010, the Federal Housing Administration (FHA) changed the condominium approval process, which may affect home buyers who are interested in using an FHA loan to purchase a condominium. These changes will speed up approvals in many cases. In addition, although some rules for property eligibility have been tightened up, others have been loosened to increase the number of properties eligible for FHA financing. Highlights of the changes for 2010 include:

Faster approvals. The new process for internal lender approval (DELRAP) could reduce the approval time significantly for most new and existing condominiums, although it may take longer in some cases.

Elimination of spot approvals. Condominiums will receive a decision on the whole project or legal phase rather than individual units.

Approvals no longer needed for detached condominiums. Buyers will be able to apply for financing under single family home requirements.

Changes in property restrictions. Changes in some requirements will make more properties eligible for FHA financing. Other changes increase restrictions on guidelines such as investor ownership and status of condominium fees.

Please contact our lending partner, Andrew Luett at Wintrust for more information:  773.303.0273 // ALuett@LuettMortgageGroup.com

Thanks!!


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Chicago lofts, Short Sales, Foreclosures, FHA, and the $8000 Tax Credit

Posted by michaelhulett in Loft Buyers Sunday, 24 January 2010 09:46 No Comments

If you’re looking to purchase your new loft this spring there are  TWO things you need to be aware of:

1.) FHA spot approval ends this month. If you don’t have a case# by January 29th it’s no dice. See your lender for more info or contact our longtime lending partner Andrew Luett w/Wintrust Mortgage at ALuett@LuettMortgageGroup.com. It’s not the end of the world as you can as you can still get the entire building approved but it often takes longer. Also, make sure to coordinate that timeline w/ your lender if you qualify for the tax credit, see below.

2.) If you’re depending on the $8,000 credit (to see if you qualify check out our recent post:  http://www.lofthunt.com/2010/01/extended-home-buyers-credit/) then you really need to be very careful if choosing a distressed property. If the property is already controlled by the bank such as a foreclosure or if it’s a bank approved short sale, then you can probably get by with a diligent effort and a good team (Realtor, Lender, attorney). If it’s a typical short sale, BE CAREFUL. These transactions can drag on for months on end with little to no resolution. So what’s the problem? Well to qualify for the tax credit you need to have the property under contract by end of April and close by end of June. Since the life cycle of a short sale can often push the 1 year timeline,  it’s likely that many buyers will blow right past those dates this spring. So be aware, move forward carefully and as always- Live lofty.


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