OPEN HOUSE OF THE WEEK-1728 N. Cleveland

If you are not completely exhausted from your great art hunt at the Old Town Arts Festival, then you might wander into an open house a few blocks away at 1728 N Cleveland on Sunday, June 13th. It is open from 2-4 and presents luxurious living - some of the convenience of the suburbs (attached garage) with all the elegance that only a well designed single family home in the city can provide. Offered at just under $3.6 million, this is 6500 sf of custom everything.

You will be struck first by the crisp carved limestone façade as you enter. The home has everything you would expect in a high end home. The tile work in each of the 5 ½ bathroom is striking. The kitchen is spacious and well appointed. The large detailed molding provides a finishing touch in every room. There are two decks – one over the garage for company entertaining and one off the top floor guest room. This was my favorite space. The current owners turned two rooms on the west side of the top floor into an office, sitting area and private balcony. What a joy it would be to commute upstairs to this private work space. It even features a kitchenette for coffee, beverages and other snacks. Another favorite part of the home is the large (300 bottle) wine cellar. Maybe you could negotiate for a choice bottle at the closing. I will leave the rest for you to discover.

The next home will not be open to the public but, should you be interested in a high-end contemporary home, 1916 N Burling can surely be scheduled to view. You can picture warm family nights in the open kitchen/family room at the back of the home looking over the courtyard and 2 level deck. When entertaining, the architect has created an open living room at the front and overlooking the living room is an open space that now features a baby grand piano. Music could softly poor over the rails for your special guests. Every touch, every stair rail, every light fixture will appeal to those of you that adore the clean lines of a contemporary home. This home is offered at just under $3 million Both of these homes are on quiet tree lined streets and have excellent schools, restaurants and entertainments within walking distance. . If you would like to view either of these homes, it would be my pleasure to arrange.

Spotlight on Old Town

Well it is that time of the year again. The first big art fair of the season is this weekend...The Old Town Art Fair and the Wells Street Art Festival. Old Town is a wonderful, historic community tucked into Chicago's Lincoln Park neighborhood. The center point is North and Wells and the historic area of the Old Town triangle runs north to Wisconsin and West to Larrabee. The neighborhood does cross over North Avenue to the south for several bocks as well with many hidden treasures tucked in everywhere. The Old Town Art Fair is a great opportunity to have first dibs on pieces from some terrific artists before the season of art shows kicks into gear. And becuase this unique art fair takes place right in the center of the neighborhood it is a chance to see the area up close and even walk through some beauftiful gardens.

What makes the historic neighborhood so interesting is that no building within the triangle can be torn down. There are also restrictions on what you can do to the facade when doing a restoration. As a result, density levels in Old Town remains low and the neighborhood wonderfully quaint and intimate.

Two of may favorite shops are on Wells:

The Spice House and Old Town Oil. If you enjoy cooking and eating, these places will change your life.

The Spice House is located at 1512 N. Wells and is a small shop dedicated to the freshest, highest quality spices. It is ideal if you need to restock the pantry or for great ideas with a huge array of fresh and already themed packages.

Just next door the most exquisite oils and vinegars can be found at Old Town Oil which offers hand blended oils and vinegars from around the world. If you liked that unique grassy cold pressed oil you tasted in Tuscany, you can find that along with tasty, syrupy aged balsamic vinegars


The market in Old Town has experienced the same roller coaster ride as many of Chicago's other areas. Much of the upper bracket homes are tucked away here and have been quite sluggish over the past several months. Since the first of the year, only 6 single family homes have sold with an average sale price of $1.2M. Apparently many agents had to adjust to the market as this was almost 67% off original list prices. Once the prices were adjusted properly, closed values were at a respectable 94% of list with an average market time of 226 days. This represented only 15% of the inventory at the time. Presently there are 23 homes on the market with an average list price of $1.7M and an average of 261 days on the market topping out at $4.3M.


In the condo and town home market for the area, 21% of this inventory has sold since the first of the year totaling 64 units with an average sale price of $440,000 which was 95% of the adjusted list prices averaging 116 days on the market. Presently there are 116 units for sale with an average price of $447,000 topping out at $1.3M.


      

Economic Update-inventories are shrinking

There is a great deal of media coverage on the results driven by the tax credit for first time home buyers. The Chicago Tribune reports that purchase contracts rose 6% in April as compared to March and both March and February were up compared to their respective previous months. If you compare year over year you see significant growth in both contracts and sales (closed purchases) for Chicago in April. Nationally, we are seeing a similar tax credit effect.

The number I watch as a signal to a recovery is inventory. Nationally we remain solidly in a “buyer’s market” with 10 months of inventory (6 months is a balanced market). This number, though, is way down from almost 16 months in February. In Chicago the picture is healthier. We have gone from 10 months inventory in February to 7.1 months in March and – this just in – 5 ½ months in April. April shows us solidly in a balanced market – not a sellers market but balanced.

This does not mean that sellers should rush out and raise prices – but certainly confirm with your agent that your home is priced right for the market conditions in your specific neighborhood and home type. This does not mean buyers will be lining up to see homes and in a weak negotiating position but there will be a balance. We have seen the bottom and should expect a gradual improvement in the housing market as the economy and the outlook on jobs improves.

What next?

May and June numbers should show us what happens now that the incentive is past. We will see a high number of closings as we reach the June 30th incentive closing deadline. Will purchase contracts slow down? Will all the folks who sold to first time buyers be on the hunt for a step up home? My prediction is that we will see an increase in the average price of a home. The units may slow as some of the folks selling to first time buyers will relocate out of the market but the value of the purchased properties will increase due to trading up. Check back in to see if my predictions are accurate

OPEN HOUSE OF THE WEEK-443 W. Aldine in Chicago--OPEN Sunday, June 6th 11am-3pm

I am starting a new segment highlighting my favorite open house for the week. This weekend a new development that is a wonderful addition to Lakeview in Chicago is 443 W. Aldine. This is a grand four unit building that has been painstakingly refinished by Brad Lippitz who is also marketing the property. The attention to detail and the preservation of the original vintage charm is something Brad cares deeply about which comes through in this property...not to mention the amount of time it has taken to get this project to market. It was worth the wait.

Ranging from $479,000 for the ground floor unit to $1,475,000 for floors 2 and 3, these sprawling units are true single floor homes. The building has an elevator and abundant parking and just steps to the lake, park, transportation and all Lakeview has to offer.

According to Brad, you can Move right into this exquisitely finished and beautifully designed glorious full-floor expansive residence with light from 4 exposures in a conversion of a stately vintage elevator bldg on serene street.

And I must say that they are truly grand and gracious rooms complete with large eat-in chef's kitchen with great room area, gorgeous master with stunning bath, central heat and air, terrace, washer and dryer hook-up, low assessments,1-car gar+1 outdr space.Spectacular!


Visit the property Sunday June 6th from 11-3pm. Let them know Andy Gersten sent you!! Or you can visit the property online: 443 W. Aldine, Chicago

Spotlight on Lakeview

I am beginning a new series of posts that will highlight different neighborhoods each week (or that is my hope anyway). This week I am looking at Lakeview with just a few hotspots and area statistics.

If you missed the WOOGMS (Wellington, Oakdale, Old Glory, Marching Society) parade on Monday no worries there is another parade to celebrate Labor Day and plenty to do in Lakeview throughout the summer. The WOOGMS parade started over 40 years ago and has grow to be over a thousand people, mostly neighborhood kids.

Lakeview is bordered by Diversey to the south, Irving park to the North the Chicago River to the west and the Lake to the east. With those boundaries there are distinct neighborhoods, each with a personality, style and amenities all its own. South East Lakeview, Belmont Harbor, Southport corridor, Wrigleyville, Roscoe Village, St Bens and West Lakeview. It is characterized by tree lined neighborhood streets, a diverse population and an abundance of places to shop, eat and hang out.


Some of the best:

Wildes Restaurant – Pub food at its finest with bookshelf lined walls, a fireplace, a great bar. I recommend the Sheppard’s Pie, but my friends tell me the fish and chips and the chicken pot pie are works of art.

After dinner, stop at Bobtail for ice cream – named after the name for the classic soda fountain glass (a “bobtail”)

Lakeview is bordered by miles of lakefront biking, jogging, and walking trails in Lincoln Park. It even boast a lakefront driving range and a decent public golf course that borders the lake. Tee off heading north and end your round with the Chicago Skyline as a back drop.

 

The housing marketing in Lakview:

In the last quarter (Q1) units sales were up (24%) and average price was down an equal amount (-25%). The price decline in Lakeview may have been a mix toward first time home ownership. With tax credits as a powerful incentive, interest rates at historical lows and prices reflecting good value, it was a very tempting time for new buyers to jump in. Houses that are selling are selling a bit faster (199 days versus 238days last year) but it is all driven by knowledge of the market, and the market value of the home you are selling or looking to buy. We are still seeing more listings coming on the market than units being sold. With this build of inventory it will continue to be a buyers market.

5% down financing is back...and it is working...talk to Bonnie

Meet Bonnie Vasilion with 1st Advantage Mortgage . Located on the north side of Chicago, Bonnie has been working in mortgage lending long enough to know that thinking outside of the box these days is crucial. Now that the government stimulus has lapsed for most buyers, there are still low down payment options available with excellent rates. 5% isn't just for FHA buyers anymore.

According to Bonnie,  "People can buy NON FHA-Approved condos now with only 5% down! This opens up opportunities for many buyers AND sellers with units in non-FHA approved condominium projects. I can offer conventional financing with PMI (“private mortgage insurance”). This is also a much more affordable way to purchase rather than obtaining FHA financing."

With lending guidelines changing by the week, it is important you have a lender who is familiar with current trends. Make sure you have an open relationship with your lender so you can talk about the good and the bad so you can get into the right product and know you can get to the closing table without the headaches you hear so much about.

Feel free to contact Bonnie directly at her office: 847-869-7100  x 3322.

Jumbo Loans Are Coming Back

I know it's been awhile since my last post. It was a very busy first quarter and frankly there is no excuse. However, we always like good news so I thought I'd add something new.

There has been so much talk about how difficult Jumbo loans are to secure...that is any loan amount over $417,000.

Wells Fargo has been doing them. It wasn't that long ago where all you heard was "jumbo loans are impossible", well jumbo lending is back. According to Ken Dickerson with RWF Mortgage, several positive changes have occurred that make jumbo loans attractive again and should help provide more financing options for some and bring others back into the market.

The rates have crept down. As of today the 30 year fixed rate is 5.5%. Down payments are also beginning to relax with 20% down required for single family and town homes and 25% down for condo's. Additionally, credit score requirement have relaxed to 700 or better. Most importantly, closing liquidity required has also reduced to 10% of the loan amount down from as high as 40% not too long ago. This is good on loans up to $1,500,000.

If you have any questions or this, please contact Ken Dickerson at RWF Mortgage.

Home Buyer Tax Credit Expanded

This afternoon Congress passed an expanded home buyer tax credit. It has already passed the Senate. Details are starting to come out. Obama could sign into law as early as tomorrow.

The following is expected:
1. $ 8,000 first time homebuyer credit extended through contracts written by 4/30/2010; closing by 6/30/2010
2. $ 6,500 credit for people buying a new home who previously owned a home for 5 years
3. Income limit expanded to $ 125,000 for individual; $ 250,000 for couples
4. Maximum property value of $ 800,000

This is all preliminary, and as always, please check with your tax advisor regarding any of these tax related issues.

Here is an article I just found; very general information.

https://webmail.rubloff.com/owa/redir.aspx?C=4c02dac69d8a47daa0d28b9f97ee5755&URL=http%3a%2f%2fwww.google.com%2fhostednews%2fap%2farticle%2fALeqM5hJJraNRE6DjWj2orF7SYJ12PADEAD9BPISHG0

Home Buyer Credit Seems To Be Making Progress

The home buyer tax credit has made a an impact on the housing market. Many agents are working with clients who have recenlty purchased using the incentive of the $8000 tax credit currenlty due to expire on November 30th and a primary motivator.

According to the Wall Street Journal, it appears that Senate negotiators have reached a tentative deal to extend the tax-credit for first time buyer, but whether it will pass is uncertain. CALL YOUR SENATORS!!!!

The agreement would extend the existing credit for first-time home buyers, worth up to $8,000, while offering a new credit of up to $6,500 for some existing homeowners. Additionally, the income limits would increase from $75,000 to $125,000 for singles and $150,000 to $250,000 for married couples. The expiration date of December 1st, 2009 would extend to contracts being entered into by April 30, 2010 and that they are closed by July 1, 2010.

Home Sales Seem To Be Improving....a bit

Eventhough it may not seem like it to many, home sales in Chicago are improving, and better than many metro cities. According to Crian's Chicago Business, Chicago’s 1.7% month-over-month gain was the fourth-largest increase among the 20 cities, after Minneapolis, at 3.2%, San Francisco, 2.8%, and Detroit, 1.9%. The Standard & Poor's/Case-Schiller home price index has shown a wide spread turn around in 17 major U.S. cities month over month since june.

Full Article

A key element that has contributed to this growth has been the $8000 tax credit stimulus package that is due to expire on November 30th of this year. There is support in Congress to extend it and have it phase out over the coming year.

Senate Majority Leader Harry Reid, a Nevada Democrat, is supporting a four-month extension of the home buyer tax credit. Two other proposals in the Senate would, respectively, extend the credit through June and, most generously, increase the deduction to $15,000 and open it up to all home buyers and those with higher incomes. One or more of these proposals is likely to come up for a vote in the next week attached to a measure that would extend unemployment benefits for 20 weeks.

I know you may not think so, but calls to your senator will make a difference. Lets not lose the momentum.

Price reduction at 3800 N. Lake Shore Dr. #13E

3800 N. Lake Shore Dr. #13E

Offering Price: $619,000

Three bedroom/Two bath

On site valet parking

This beautiful and completely redone home on Lake Shore Drive has just reduced its price to $619,000. If you are looking for a tasteful top to bottom restoration of a 2100 square foot home in a 1920's vintage buiding, you will not be disappointed. With original hardwood floors and molding throughout, this three bedroom unit has a tasteful new kitchen and master bath. To top it off, this building has one of the best parking arrangements for a vintage building on lake shore with onsite valet parking.

For a complete virtual tour visit 3800 N. Lake Shore Drive #13E

New Listing in River North at 715 N. Franklin

715 N. Franklin

I just listed this unique free-standing brick building in the heart of the gallery district of River North.

Home of the former Adams Fine Art Gallery, the building located at 715 N. Franklin is about 2200 square feet on three levels and is ideal for an art gallery, design studio, retail store or offices. And it is just steps from the Chicago Ave. el stop.

Building is in good condition and is listed for $475,000. Call me at 312.368.3280 for more information or go to http://www.andygersten.com/property/6248312 for details and a full virtual tour.

YTD sales improve for the 5th consecutive month

A fantatic source for sales figures in the Chicago condo market, chicagocondosonline.com uses reional multiple listing service data and compiles statistic to help you better understand the market as a whole. The primary data summary is below along with links for more details and prior reports. The data is quite mixed but one quite positive trend is the decrease in the reduction of sales to the prior month.


Year-to-date sales of Chicago condos for the first nine months of 2009 are

* Down 44% in total dollar volume, to $2.2 billion
* Down 33% in units closed, to 7,073
* Down 13% in median sales price, to $276,000
* Up 16% in average market time, to 151 days.

This shows an improving year-to-date market in both dollars and units for five consecutive months:

End of April: Dollars down 59%, units down 51%
End of May: Dollars down 57%, units down 48%
End of June: Dollars down 53%, units down 44%
End of July: Dollars down 49%, units down 39%
End of August: Dollars down 47%, units down 36%
End of September: Dollars down 44%, units down 33%

Comparing September sales to August:

* Units closed were down 6%, from 1,030 to 973 closings
* Dollar volume was down 10%, from $317 million to $285 million
* Median sales price was up 1%, from $263,900 to $266,500
* Average market time was down 1%, from 149 days to 148 days

For details on month-over-month and year-over-year: click here.

For the full story: click here.

Easy Condo Credit?

Today's Crain's Chicago ran a video story about MB Financial and the "easy credit" market for condos. Some banks including Wells Fargo are once again offering 95% financing. MB Financial is offering up to one whole percentage point less to buyers than competing lenders for some projects it has underwritten. With the stimlus potentially expiring November 30th, accommodating financing at still attractive rates, and home values at their lowest levels in years, it is a great time to buy...now we just need more buyers.

Signs of a Housing Recovery seem to be here...

This recent article in The Wall Street Journal is giving sellers renewed hope and confirming what many agents seem to be experiencing. The market is definitely picking up and contracts are coming in once again although pricing is still unknown at the moment as it seems we may have a little more retraction yet to go before values stabilize.


JUNE 3, 2009
Index Suggests Home Sales Are Set to Increase
By JUSTIN LAHART

In another sign that the housing market may have begun to recover, the number of people who signed contracts to purchase homes increased for the third month in a row.
Associated Press

A sign indicates the pending sale of a home in Little Rock, Ark.

WSJ's Nick Timiraos says that there is more good news for housing as the pending home sales index has risen for the third straight month, but may not entirely be out of the woods yet.
The National Association of Realtors said its index of pending-home sales rose 6.7% in April to 90.3 from 84.6 in March. Increases in contract signings typically lead to more sales a month or two later.

The relationship between the two has been less steady since the fall, as more would-be home buyers have struggled to get financing. But the increase in signings is large enough to augur more home purchases, said Joshua Shapiro, an economist with MFR. "Clearly, within the next couple of months there's going to be a decent increase in actual home sales," he said.
Much of the April increase came from the Northeast, where contract signings rose 32.6%. Signings rose 9.8% in the Midwest and 1.8% in the West; they slipped 0.2% in the South.
Year over year, the index was up 3.2%. The 6.7% monthly increase was much larger than the 0.5% gain analysts had projected.

Last week, the Realtors said sales of previously owned homes rose in April, with sales of foreclosed and other distressed properties accounting for nearly half of the total. The Commerce Department said sales of new homes also edged higher in April.

—Jeff Bater contributed to this article.

Write to Justin Lahart at https://webmail.rubloff.com/owa/redir.aspx?C=22a7e0d379a14e06b3772ea4b7d798bf&URL=mailto%3ajustin.lahart%40wsj.com

Tax Credit CAN be used as a down payment

The Secretary of the U.S. Department of Housing and Urban Development told REALTORS® gathered in Washington, D.C., that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the first-time buyer $8,000 tax credit as a down payment, a move promoted by NAR.

1771 W. Ainslie $729,000

Come see this beautiful north Ravenswood four bedroom single family home. New to the market, this bright and spacious home was redone in 2001 with an open floor plan and sunroom over looking the yard. Plus, four bedrooms on the 2nd and third floors with an additional sitting room and private 3rd floor master bedroom. A quick five minute walk to the Lawrence Metra stop.

View a virtual tour or read property details.

Open Sunday, May 17th 12pm-3pm

Explaining the First Time Home Buyer Tax Credit

I still am getting questions on the first time home buyer tax credit. It is fairly easy to understand and to help, I have included a video from Rob Dietz, Ph.D., director of tax issues for the National Association of Home Builders. For those of you whoe are on the fence, this is a great opportunity to help you get into your first home. The key pieces of this legislation are related to your personal income and the amount of the purchase. Hopefully this video will clear things up.

New Fannie Mae Rules Making It Tougher...

Fannie Mae, the government-sponsored group that makes adequate funds available to mortgage lenders, has implemented new guidelines as of March 1st that unit owners and associations should be aware of. These changes have impeded many sales lately. Some of the primary issues concern clarifications of owner-occupancy ratios, association insurance, lawsuits and new guidelines for new construction and newly converted projects. It has been my experience that buildings which has once passed with flying colors, now don't qualify and as a result, lenders are rejecting these loans. This is trouble for both buyers and sellers.

A recent article in the Chicago Tribune outlines some of the most relevant changes.

Oh Happy Day....that's what consumer indexes are saying

In a recent AP article, the New York-based Conference Board stated that the Consumer Confidence Index rose more than 12 points to 39.2 up from a revised 26.9 in March. This exceeds ecomonmists' expectations of only 29.5 and is the highest since last November's reading of 44.7. The survey showed a significant improvement of consumer's short-term expectations of the economy. The most encouraging news came from the retail and housing sectors and may suggest that the housing market is finally bottoming out.