New listings in the city of Chicago were down 16.5 percent for detached homes and 5.8 percent for attached properties. The lower inventory is good because it combats the over-saturation that we have had in the market for the past number of years. Listings under contract increased 39.5 percent for detached homes and 33.6 percent for attached properties. The median sales price was up 12.7 percent to $144,250 for detached homes and 9.3 percent to $235,000 for attached properties. Month’s supply of inventory decreased 50.1 percent for detached units and 62.3 percent for attached units. So while there is less inventory, properties more properties and selling and they are selling more quickly. We are seeing multiple offers on properties and properties selling for over list price. These are all great signs of appreciation in the market.

A short sale typically occurs when an owner can’t afford his or her mortgage payments or needs to sell the property for some other reason but the value of the property is less than the owner owns on his mortgage.  The lender or bank holding the mortgage allows the owner to sell the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender, sometimes (but not always) in full satisfaction of the debt. Typically the lender would have the right to approve or disapprove a proposed sale.  This is why it can take an extended time for a buyer to receive a response when they make an offer on a property that is in short sale.

A foreclosure typically occurs when a property owner defaults on his mortgage payments for a number of months.  The bank or lender then begins the process to repossess the property.  After repossessing the property the lender can sell the property and keep the proceeds to pay off its mortgage and any legal costs, and it is typically said that “the lender has foreclosed its mortgage or lien”. If the promissory note was made with a recourse clause and the sale does not bring enough to pay the existing balance of principal and fees the mortgagee can file a claim for a deficiency judgment.

I hope that this explanation is helpful.  A short sale is typically the better of the two options for the seller as well as the lender.

The city of Chicago saw a 23.2 percent year-over-year home sales increase
(single-family home and condos) in September 2012, with 1,845 home sales.  

 Looking specifically at the city’s condo market, September 2012 saw a sales
increase of 32.2 percent over last September.
 The median September 2012 home price in Chicago was $188,900, off 0.6 percent
compared to September 2011.
 In the greater, nine-country Chicago metro region, home sales in September 2012
totaled 7,484 homes sold, up 24 percent from last September.
 The median September home sale price in the Chicago region was $160,000,
unchanged from September 2011. September’s median price was $20,000 above
January 2012, however.
 The monthly average commitment rate for a 30-year, fixed-rate mortgage for the
North Central region was 3.49 percent in September 2012, down from 3.60
percent during the previous month.
State of the Market
 On one hand we’re having great success, because we’re seeing many more sales
in the city of Chicago come to close. Nonetheless, price points are behind where
we’d like to see them.
 Data continues to show a modest market recovery underway; we’re pleased to
see the emerging trend of delayed foreclosures working their way through the
court system. This will positively affect home-price stabilization.

Source:  The Chicago Association of Realtors

Currently under construction in Midtown Manhattan, the 75-story One57 tower skyscraper is billed as a luxury “Wall of Glass.”  

In the last six months, the mysterious building has become a symbol of the boomingManhattanreal estate market, as moneyed buyers allegedly paid top dollar for signature buildings before construction was even complete.

Upon scheduled completion in 2013, it will stand at 1,004 feet tall, making it one of the tallest buildings in the city. The mixed-use tower developed by the Extell Development Company, will have 135 residential units on top of a Park Hyatt Hotel with 210 rooms.

Reportedly, buyers including fashion executives, movie stars, tech titans and Middle Eastern oil czars, have paid more than $90 million per unit. Since specific buyers have never been disclosed, this has given the building a certain mystique in the marketing of the building.

According to the New York Daily News, “Hurricane Sandy blew over a rooftop crane, leaving it dangling overW. 57th St.and terrifying passersby who feared it would come crashing to the ground. Firefighters were called to the site of the One57 tower, as the crane swayed from the 70th floor. Police blocked off nearby streets and several buildings between Sixth and Seventh Aves. were evacuated.”

The strong sales report was coupled with data showing the median price of a home in the state rose 2.2 percent.  

Statewide home sales (including single-family homes and condominiums) in September 2012 totaled 10,689 homes sold, up from 9,220 in September 2011. IAR has seen year-over-year sales increases since July 2011.

The statewide median price in September was $139,000, up 2.2 percent from September 2011 when the median price was $136,000. The median price of an Illinois home has increased 13.6 percent from January 2012’s median price of $122,350. The median is a typical market price where half the homes sold for more and half sold for less.

“If there is a headline from the first nine months of 2012, it is one of continued market stabilization,” said Michael D. Oldenettel, CRS, GRI, and Managing Broker/Owner with RE/MAX Results Plus in Jacksonville, Ill. “The prices, interest rates and consumers’ feelings about the economy are fueling improvements in the housing market.”

The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 3.49 percent in September 2012, down from 3.60 percent during the previous month, according to the Federal Home Loan Mortgage Corp. Last September it averaged 4.09 percent.

In the nine-county Chicago Primary Metropolitan Statistical Area (PMSA), home sales (single family and condominiums) in September 2012 totaled 7,484 homes sold, up 24.0 percent from September 2011 sales of 6,035 homes. The median price in September 2012 was $160,000 in the Chicago PMSA, unchanged from September 2011. The median price of a home in the Chicago area in September was $20,000 above January 2012’s median price of $140,000.

“Given the uncertainties in the economy, with the forthcoming election contributing significantly, the housing market has performed well in the last quarter,” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. “While month-over-month sales were down in September, the year-over-year sales were up and prices continued their modest recovery.”

Forty-five (45) of 101 Illinois counties reporting showed year-over-year home sales increases in September 2012. Forty-four (44) counties showed year-over-year median price increases including DuPage, up 2.6 percent to $200,000; JoDaviess, up 3.9 percent to $140,250; Kane, up 2.3 percent to $135,000; Kendall, up 6.0 percent to $157,875; McLean, up 3.9 percent to $160,000; Peoria, up 8.8 percent to $130,000; and Sangamon, up 4.3 percent to $125,000.

The city of Chicago saw a 23.2 percent year-over-year home sales increase in September 2012 with 1,845 sales, up from 1,498 in September 2011. The condo market in the city of Chicago showed a sales increase of 32.2 percent, going from 855 units sold in September 2011 to 1,130 sales in September 2011. The median price of a home in the city of Chicago in September 2012 was $188,900, off 0.6 percent compared to September 2011 when it was $190,000.

“On one hand we’re having great success because we’re seeing many more sales come to close, but the price points are lagging behind where we’d like to see them,” said REALTOR® Zeke Morris, president of the Chicago Association of REALTORS® and Operating Principal and Managing Broker, Keller Williams Realty, CCG. “Prices are in line with the amount of distressed product that’s still out there; we have to work through that inventory. We should continue to try to stabilize the lower half of the market, particularly the condo market in the city, which to a large extent is a function of consumer confidence and jobs.”

Sales and price information is generated by Multiple Listing Service closed sales reported by 31 participating Illinois REALTOR® local boards and associations including Midwest Real Estate Data LLC data as of October 7, 2012 for the period September 1 through September 30, 2012. The Chicago PMSA, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.

The Illinois Association of REALTORS® is a voluntary trade association whose 41,000 members are engaged in all facets of the real estate industry. In addition to serving the professional needs of its members, the Illinois Association of REALTORS® works to protect the rights of private property owners in the state by recommending and promoting legislation to safeguard and advance the interest of real property ownership

Source: Illinois Association of Realtors

Housing starts increased 15 percent last month to a seasonally adjusted annual rate of 872,000 units, beating even the most optimistic forecasts on Wall Street, Commerce Department data showed on Wednesday.

It was the quickest pace of groundbreaking since July 2008, though data on starts is volatile and subject to substantial revisions.
America’s economy has shown signs of faster growth in recent months as the jobless rate has fallen and retail sales data has pointed to stronger consumer spending.

Wednesday’s data showed that housing, which was battered by the 2007-09 recession, is increasingly one of the brighter spots in the economy.

“One of the big headwinds for the economy has been the weak housing market and this indicates that headwind has dissipated,” said Gary Thayer, an economic strategist at Wells Fargo Advisors in St. Louis, Missouri.

Home building could add to growth this year for the first time since 2005 and the brighter economic signal is likely to be welcomed at the White House, where a sluggish economy is weighing on President Barack Obama’s chances of re-election next month.

Economists estimate that for every new house built, at least three new jobs are created.

Groundbreaking on new homes rose across much of the country, and was up 20.1 percent in western states. It fell 5.1 percent in the Northeast, however.

Yields on U.S. government debt rose as investors bet the data pointed to a stronger economy.

On the U.S. stock market, the PHLX Housing Index of leading home builders climbed 4 percent as D.R. Horton advanced 5 percent. Home improvement retailers Home Depot and Lowe’s were also higher.

NOT YET NORMAL

Housing remains hampered by a glut of unsold homes, and the housing starts rate is still about 60 percent below its January 2006 peak.

Home building now makes up just over 2 percent of the economy, so it is unlikely to fuel a big acceleration in the recovery anytime soon. The European debt crisis looms heavily over the economic outlook, as does the possibility Washington could hike taxes and cut spending next year.

But every little bit helps, and more home building could partially compensate for recent weakness in factory output, which has been hit by sluggish export demand and cooling investment in capital goods.

“Things are lining up for housing,” said John Canally, an economist at LPL Financial in Boston. “It’s another step in the right direction, but you still have a long, long way to get back to ‘normal’ in housing.”

September groundbreaking for single-family homes, the largest segment of the market, rose 11 percent to a 603,000-unit pace – the highest level since August 2008. Starts for multi-family homes climbed 25.1 percent.

Building permits grew 11.6 percent to a 894,000-unit pace in September, beating economists’ forecasts.

U.S. home sales have been creeping up and the steep decline in prices since 2006 appears to have bottomed. That has helped home-builder sentiment, which this month rose to a fresh six-year high.

In a bid to help the economy by encouraging people to buy homes, the Fed said last month it would buy $40 billion in mortgage-backed securities every month until the jobs outlook improves substantially.

The Fed’s efforts to lower borrowing costs have pushed interest rates on 30-year mortgages to all-time lows. Last week, fixed 30-year mortgage rates rose 1 basis point to average 3.57 percent, the Mortgage Bankers Association said.

Applications for U.S. home mortgages fell last week, but demand for purchase loans, a leading indicator of home sales, reached the highest level since June, the association said.

“It seems as though low interest rates and stable prices are starting to stir the interest of potential buyers,” said Michael Moran, an economist at Daiwa Securities America in New York.

Source: The Chicago Tribune

-Source: The Chicago Association of Realtors-

Countywide, property owners will collectively pay a 2.68 percent increase — a rise of more than $300 million — in property taxes this year. 

Read More…

That’s because taxing districts countywide — from parks and cities to libraries and schools — are asking for $11.6 billion to cover the bills, up from last year’s $11.3 billion.

Some $4 billion of that money goes to the major taxing districts in the city ofChicago, up from $3.9 billion the previous year.

The 3.4 percent increase in the city is driven largely by the Chicago Board of Education, which is asking for $2.118 billion, up from $2.001 billion — a $117 million jump from the previous year, according to tax statistics released Thursday by Cook County Clerk David Orr’s office.

The complicated task of figuring tax bills not only includes the assessed value of a home, but also a state-issued equalization factor. The county clerk then sets the tax rate to meet the taxing districts’ financial needs.

Factored in to the tax bill equation is the Consumer Price Index, currently 2.70 percent, which sets property tax limits — a guide for taxing districts that are weighing a hike in the levy.

This year, dropping assessed values on homes, along with the state equalizer falling, drove the tax rates up in most parts of the county to meet the demands of the taxing districts, explained Bill Vaselopulos, tax extension manager in Cook County Clerk David Orr’s office.

He points to aChicagohome valued at $200,000 with a homeowner’s exemption. The annual tax bill would be $2,465, up $272 from last year’s $2,193.

The 12 percent hike can be attributed to a drop in the homeowners’ exemption — something that is happening across the board per state law — as well as the tax rate hike in the city of Chicago: from 4.627 percent to 4.931 percent, according tax statistics.

“Just because your assessed value has dropped does not mean that your tax amount will drop accordingly,” Vaselopulos said.

Every three years, a property owner’s home is reassessed — a schedule that depends on which part of the county you live in, according to theCookCountyassessor’s office.

But again, Vaselopulos stressed, the assessed value is only a single factor in calculating the final bill.

Consider the north and northwest suburbs, where properties were most recently reassessed, homeowners may see higher tax bills as the so-called “7 percent cap” or 7 percent alternative homeowners exemption is sunsetting unless the state renews it.

That’s also a factor in the city as well.

“So what you’re seeing is more taxable value is being folded back in to residential properties,” Vaselopulos said.

The tough reality for the average homeowner is that their bills are going up while their property value is going down.  In my opinion this will put even more strain on homeowners that are currently struggling with their bills and as a consequence we will continue to see more short sales and foreclosures.

-source: Chicago Sun Times-