According to the NorthShore Insider the real estate market in the Northshore area has been suferring. October was the worst month it's had, condo sales and single family home sales were off sharply. According to data from the MLS, a toal of 196 new and resale single-family hoems were sold in the reqion over the last month... a 20% decline in demand from the same period last year. The average sales price of homes has also dropped to $705,523, down from $880,401. The dramatic drop in demand for the most expensive homes in neighborhoods such as Winnetka and Glencoe was the main culprit for the slide in the average sales price.
Condo sales also took a big hit. Accordign to MLS data, only 91 new and resale condos were sold in the previous month, down 24% from the same period last year. The average price plunged to their lowest levels in two years. The average time for turnover in the North Shore has risen to 181 days, up from the previous 94 days.
Buyers haven't returned to the market yet to take advantage of deals in the North Shore neighborhoods yet. Listing prices have plunged in Glencoe and Winnetkam, two exclusive markets in the area. This can possibly be due to the fact that many homeowners are simply waiting for a better market, particularly more wealthy homeowners that aren't facing foreclosure.
Now is a great time to take advantage of the property prices in the North Shore.
In today’s market there is a common question amongst someone looking for a new home, should I rent or should I buy? There are many reasons why you should buy in today’s market and many reasons why you should not buy. For starters, the current trend in home financing is simple… there not many programs available, tough lending guidelines, and a poor economy. Add in the current job market and you will see that for many it may not be the best time to buy a new home. On the other end of the spectrum there are builders, sellers, condo developments, etc., all with inventory which they find difficult to move… the home finance trend is affecting them as well. So what does one do? Lease!
An individual looking to sell can lease his/ her property for a period of time until things turn around and they can sell. Someone looking to move to a larger home or simply downsize can lease for a year or two until things change. However what if a buyer can buy a new home, should they? I would suggest not always. There are times when it makes sense not to buy even if one can. For example, let’s take a family who wants to move to a bigger, newer home. They really can afford the mortgage, but should they really buy now? Perhaps not. You see, if a large down payment is not involved and the individual perhaps doesn’t have the savings, then it may make more sense to rent a newer home for a low monthly rent. Compare the costs of a $600,000 home. A home at this price would cost you a monthly payment of anywhere between $5000 and $6000 per month including your taxes and insurance. Additionally, you must must aside 5-10% for the down payment. Those high monthly payments could be hard on a family when you add all the other monthly expenses. Now, you can rent this same house for half those monthly payments, not have to worry about taxes or home owners insurance and have money left over to save for your down payment when you do buy. You can put your savings into an investment that is gaining interest for a year or more. When it’s time to buy that new home, you can put down 10% to 20% or more and have lower monthly payments, less worries and more room in your pockets for life’s unexpected bumps in the road.
Now, a situation in which you are putting down a large down payment would be a good time to buy a house rather than rent… that is if you have a large sum of money to put down which will result in monthly payments that won’t “break the bank”. Now, if you are looking for a smaller purchase then it’s a good time to move forward and purchase the new condo or home, if you can qualify for a loan. With today’s low rates, many incentives, low cost of real estate along with minimum down payment requirements it may make sense to go straight forward with the purchase.
We are in a new age and keeping up with the housing market takes research. Let us help you to make the right choice, the choice that makes sense for you and your long term goals. Ask you Smart Property/Rent Smart Agent to guide you in making the correct decision.
Fannie Mae owned 72,275 homes as of the end of the third quarter 2009. It wants desperately to move those home out of inventory and into the hands of new homeowners. Like any seller with too much inventory, Fannie Mae is offering new incentives. Until May 1, 2010, buyer's of Fannie Mae owned properties can elect to receive either a 3.5% closing cost credit or 3.5% credit toward the purchase of appliances for the home purchased.
Ask your Rent Smart/Smart Property agent for a complete list of Fannie Mae owned homes in the Chicagoland area.
Would you let a stranger into your home? Of course not. Yet, every day well meaning landlords place their property at risk by failing to do their homework before listing their property for rent with an apartment broker. When you list a property and give that person keys or access to your property you are bestowing a great deal of trust in the individual or company. Have you made sure that they are worthy of that trust? Here are some basic questions you should ask:
1. What is the company or individual's experience? Delve deep here. Ask how long they have been in the business, where they have rented properties and how many deals have they closed. Ask for references from prior landlord clients and call them. Is the company and the agent a member of a professional association of realtors?
2. What is the Company's name and how long have they been in the brokerage business? You would be amazed by the number of rental brokers that have emerged over the last year. Its fairly easy for any inexperienced broker to pass and exam, throw an add on Craigslist and starting calling landlord's for listings. Does the company have a real office (as opposed to the trunk of their car or a "virtual" office).
3. Is the Company insured for liability against accidents? Demand liability coverage and ask for a copy of the policy. A reputable broker will take no offense. Consider the fact that it is you that can be named as a defendant if there is an accident at a showing.
4. Is the company properly licensed? Ask to see a copy of the agent's "pocket card". All licensed real estate agents are required to carry a pocket card showing that they are licensed. Check with the Illinois Department of Financial & Professional Regulation to verify the agent's license. Again, no reputable agent will take offense.
5. Is the agent covered by errors and omissions insurance? Ask for a copy of the policy. If they do not carry coverage, do not list your property with that agent. Errors and omissions can offer protection should the agent make a mistake in his representation of you in a leasing transaction. Don't underestimate what the potential liability can be. For example, many landlords are shocked to learn that tenants can recover two times the security deposit amount, plus the deposit, plus attorney's fees for simple errors like failing to properly create a receipt or lease.
Following these simple steps will go a long way toward protecting yourself and your property. If you have questions or concerns ask for additional information from your Rent Smart agent. Rent Smart is a licensed Illinois real estate broker corporation with five locations located throughout Chicago and 150 properly trained and licensed agents. All Rent Smart agents are covered by liability and errors & omission insurance policies.
I have noticed throughout Chicago that the number of dog owners has increased.But, working in the industry, I have noticed how few Landlords allow dogs.Per capita it is more difficult than it should be.
People who rescue animals are especially vulnerable.Without a home that allows pets, cats and dogs cannot be rescued.Helping create a home for human and canine/feline co-habitation is a positive experience that nurtures the soul. It is estimated that around 40% of all dog owners also own at least one cat. I understand that, and look for the pet friendly buildings where ever they are.It becomes a mission.
According to the Mendocino Coast Humane Society, Pet Owners looking for an apartment are best served when they assemble references for their pet(s).Some Landlords even want to meet Fido before signing the lease.So, working with your dog, training him/her not to jump on people, etc. goes a long way to helping us find a nice apartment for you and your extended family.
The Mendocino Coast Humane Society’s Web-site suggests that “a dog or puppy jumping on you is caused only by their excitement and their desire to receive your attention and affection. A dog is down there and you are up there and they want to say ‘Hello’ to you at face level. Every time we accept a dog jumping on us, we reward their behavior. Consistency is the most important part of training a dog.
There are a few different techniques to stop jumping, but the most effective method is for everyone in the family must agree that jumping is unacceptable behavior.
The best technique is to ignore your dogs jumping. If a dog jumps on you, look up and ignore him or her. Be silent and do not respond in any way until after the dog stops. Petting, yelling and talking only reinforces the behavior to jump on you. After the dog stops wait before you look down and respond to the dog. Vary the amount of time you wait before you respond. It may be best to always ignore your dog when you arrive home until it calms down. Carry a cookie next time you will greet your dog. If it does not jump, give it a cookie and praise it for good behavior.
Remember that dogs are not all that dumb. If every time you come home, the dog jumps on you, your ignore it, it stops, you reach down and pet it, you have just taught your dog a new trick. Reinforce good behavior, ignore bad behavior.”
Other methods may also be employed.According to the Mendocino Coast Humane Society’s Web-site, “kneeing the dog, holding its paws and declaring ‘Off’ are other techniques. ‘Kneeing’ is a technique of raising your knee, just as you see your dog approach with a jump. It is not meant to be violent or to hurt, just to rebound the dog. Caution should be used with this technique; your timing must be perfect and you risk possible injury to yourself and your dog. It is also difficult to knee a dog when sitting.
‘Holding the paws’ is a technique of allowing the dog to jump, grasping their paws and holding on. This is combined with lots of enthusiastic and pleasant talk to your dog. Dogs do not like their paws being held and will begin to struggle. The technique is taught that you keep holding on until the dog becomes very unhappy with the exercise. The goal is to convince the dog that jumping is an uncomfortable event. The disadvantage is that you must do this every time your dog jumps on you and this is not always easy when carrying the groceries. Caution should be used with technique; I have seen a professional trainer get bitten very badly by a friendly puppy.
Giving the command ‘Off’ works only as a reminder to a dog that understands the behavior is not acceptable. ‘Off’ means put all four feet on the ground and works better than the command ‘No’.Do not yell, scream; just say ‘Off’ and ignore your dog. Dogs hear you; they are capable of selective hearing like some people.”
By working with your pet(s) and your Rent Smart Agent, the application process will be a smooth one and the pet interview will result in a positive transition which secures the apartment you want.
So, as our Dogs and Cats love us, let us show them some love also.More pet friendly buildings today!
Today, Freddie Mac, the giant government sponsored 9now owned) enterprise that underwrote billions in residential mortgages, announced that is is opening two Chicago help center to assist local homeowners facing foreclosure. The centers will assist homeowners with the often frustrating process of loan modification. The two groups involved with the Freddie Mac effort are Latin American Community Housing Association located at 1152 N Christiana Avenue and Neighborhood Housing Services of Chicago Inc. located at 1279 N Milwaukee Avenue. The hope of both groups is that their intervention on behalf of homeowners will result in more modifications and allow many more homeowners to survive foreclosure.
Three years ago when the real estate market was at its peak, TIshman Speyer and BlackRock Realty put together the nation's largest real estate deal when they packaged a deal to buy Manhattan's largest apartment complex: Stuyvesant Town and Peter Cooper Village. The price tag: $5,400,000,000.00!!!! Another $900,000,000 was required for reserves bringing the total investment to $6.3 billion. Like many who speculated in real estate at the peak, the investor's plans did not turn out as they had planned.
Today, Tishman and BlackRock confirmed that they are handing over the keys to their lenders and walking away. How much did they lose? The property today is valued at $1.9 billion, resulting in a loss in value of $3.5 billion. So, in perspective, the Chicago real estate market isn't so bad after all.
The Tweet that was heard round the world will not result in a judgment against the tenant that complained of a moldy apartment. You may recall that the tenant was sued by her landlord after she "tweeted" that her apartment was moldy. Offended, the landlord sued for libel. Today, Cook County Circuit Court Judge Diane J. Larsen dismissed the case with prejudice. The judge decided that the tweet was not libelous because it was too vague.
In 2009, for the first time, the interest rate prescribed by the City of Chicago for security deposits for leases subject to the Residential Landlord Tenant Ordinance ("RLTO") is less than the rate specified by the Illinois Security Deposit Interest Act ("SDIA"). The SDIA rate is .25% for 2009 leases while the Chicago rate for 2009 leases is only .12%. Why is this important? An argument can be made that the SDIA rate must be paid on all Chicago leases for 2009 for buildings with 25 or more units. Failure to do say may expose the landlord to liability under SDIA. This situation has not been decided by a court as of yet, but is sure to catch some landlords off guard. Consult an attorney experienced in these matters to learn how your particular situation may be affected.
On December 31, 2009, the City of Chicago announced the security deposit nterest rate for all 2010 leases subject to the Residential Landlord Tenant Ordinance ("RLTO"). The new rate is .073%. It is important that landlords update their lease forms to reflect proper disclosure of the new rate to be in full compliance with RLTO. Failure to comply can expose a landlord to significant liability.
Consult with your own legal counsel to learn more or contact a Rent Smart agent for a reference to an attorney familiar with these matters.
Lead or follow? The answer to that basic question defines our company. Rent Smart is a pioneering leader in the residential rental market. The company has introduced and implemented technological innovations that have reshaped the industry. We have used those tools to provide our landlord and tenant clients with an exceptional level of service. We employ the latest marketing and database management tools to assure that our clients' needs are constantly met. Over 125 agents are standing by ready to assist you at any one of our five locations. We look forward to working with you. At Rent Smart Chicago - "It's The Lease We Can Do."
About This Blog
This blog is just one more effort to help you stay on top of Chicagoland's rental market. Here we bring you the latest in real estate news, trends and ideas and our particular insights. Each day we attempt to post articles that you may find insightful, helpful or just interesting.
We welcome your feedback through the comments you can post and we are always open to new ideas and suggestions. We look forward to hearing from you.
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