Chicago Real Estate Market Summary – September 2011

11 10 2011

Increases in Unit Sales and Units Under Contract and decreases in Inventory and Months Of Supply continued for the second consecutive month in Lakeview, Lincoln Park, Near North and the Loop  when comparing September 2011 to 2010.

Even with inventory decreases, levels are still high enough to continue to drive prices down, if only by 1.9% for the combined areas in September.

Decreases in Unit Sales in Near North and increases in Median Price in Lakeview were exceptions to otherwise consistent results.

It should be noted that while homes priced under $500,000 and those priced over $1,000,000 showed increases, homes priced between $500,000 and $1,000,000 showed a decrease.

  Sep-11 Sep-10 % +/-
       
Unit Sales – Total 387 339 14.2
Lakeview 105  80 31.2
Lincoln Park  85  56 51.8
Near North 142 157 -9.6
Loop  55  48 19.6
       
Unit Sales By Price Point       
0 – $500,000 273 231 18.2
$500,000 – $ 1,000,000  77  83 -7.2
$ 1,000,000 – Up  39  27 44.4
       
Units Under Contract – Total 396 281 40.9
Lakeview 111   74 50.0
Lincoln Park  63   50 26.0
Near North 165 119 38.7
Loop  57   38 50.0
       
Unit Inventory – Total 4978 6878 -27.6
Lakeview 1399 1763 -20.6
Lincoln Park  991 1227 -19.2
Near North 1985 2944 -32.2
Loop   593  944 -37.2
       
Inventory (Months Of Supply)  9.6 20.4 -53.0
Lakeview  9.4 19.1 -50.5
Lincoln Park 12.1 19.7 -38.6
Near North  9.4 21.1 -55.4
Loop  7.6 21.8 -64.7
       
Median Pricing – Total 365,000 370,000 -1.4
Lakeview 410,000 320,000  28.1
Lincoln Park 440,00 515,000 -14.7
Near North 318,750 349,000  -8.7
Loop 315,000 394,450 -29.1
       

Source – MREDLLC


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A Comparison Of Bank Owned Properties To Non Bank Owned Properties – Lakeview, Lincoln Park And Near North – September 2011

27 09 2011

A friend of mine recently asked me about Bank Owned Properties, as they are so prominent in the news.  He was curious as to how many there are in this area (Lakeview, Lincoln Park and Near North) and how they compare to Non Bank Owned Properties.

I have attached 3 reports below that show the comparison of Bank Owned Properties to Non Bank Owned Properties by month for the past 2 years, for Unit Sales, Unit Inventory and Median Pricing.

There appears to be a significant amount of “shadow inventory” (inventory that is not yet on the market); however, Bank Owned Properties average about 10% of the total homes for sale.  In August 2011, they represented 8.7% of the total, with a high in December 2010 of 11.6% and a low of 6.8% in August 2009.

Units Sold showed much more fluctuation, with August 2011 Bank Owned Properties accounting for 10.4% of total sales. The high was 28.9% in February of 2011 and the low was 5.6% in September of 2009.

Median prices have remained fairly consistent for properties sold during the past 2 years.  Median prices for Bank Owned Properties were about 50% lower than Non Bank Owned Properties.

Please click on the 3 reports below (enlarge to 100%) for more detailed, printable information. Each report is 2 pages with both graphs and spread sheets.

Inventory Units – Bank vs Non Bank

Sold Units – Bank vs Non Bank

Median Price Sold – Bank vs Non Bank

Source – MREDLLC


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Chicago Real Estate Market Summary – August 2011

12 09 2011

With the effects of the federal real estate tax credits of 2010 winding down, August 2011 showed sales increases for Lakeview, Lincoln Park, Near North and the Loop for the first time in over a year.

Despite an onslaught of negative economic news, Unit Sales were up 18.2% and Units Under Contract were up 54.7% in comparison to August 2010.

Increases were also posted for all three price points (see below).

While Unit Inventory and Months Of Supply decreased dramatically compared to 2010, inventory levels continue to have a negative effect on prices. Median Prices for August 2011 dropped 7.5% against August 2010.

  Aug-11 Aug-10 % +/-
       
Unit Sales – Total 494 418 18.2
Lakeview 152 119 27.2
Lincoln Park   97   78 24.4
Near North 193 168 14.9
Loop   52   53   1.9
       
Unit Sales By Price Point       
0 – $500,000 344 280 22.9
$500,000 – $ 1,000,000 101   98   3.1
$ 1,000,000 – Up   50   45 11.1
       
Units Under Contract – Total 492 318 54.7
Lakeview 117   81 44.2
Lincoln Park   89   54 64.8
Near North 203 134 51.5
Loop   83   49 69.4
       
Unit Inventory – Total 5203 7065 -26.4
Lakeview 1428 1838 -22.3
Lincoln Park 1012 1218 -16.9
Near North 2092 3009 -30.5
Loop  671 1000 -32.9
       
Inventory (Months Of Supply) 8.0 18.2 -55.9
Lakeview 9.3 18.0 -48.2
Lincoln Park 8.5 18.2 -53.3
Near North 8.0 18.9 -57.4
Loop 5.6 16.6 -66.3
       
Median Pricing – Total 375,000 386,500 -7.5
Lakeview 373,500 369,000   1.2
Lincoln Park 425,000 436,000  -2.5
Near North 338,000 350,750  -3.6
Loop 295,000 419,900 -29.7
       

Source – MRED LLC


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Real Estate Taxes And The New Health Care Bill

23 08 2011

There has been a lot of confusion concerning additional real estate taxes associated with the new health care bill. The following excerpts from an article by Brooks Jackson, clarifies the new tax and who will be affected. 

At the last minute, lawmakers decided on a new 3.8 percent tax on the net investment income of high-income persons. But the claim that this would amount to a $15,200 tax on the sale of a typical $400,000 home is utterly false.

The truth is that only a tiny percentage of home sellers will pay the tax. First of all, only those with incomes over $200,000 a year ($250,000 for married couples filing jointly) will be subject to it. And even for those who have such high incomes, the tax still won’t apply to the first $250,000 on profits from the sale of a personal residence — or to the first $500,000 in the case of a married couple selling their home.

We can understand how this misconception got started. The law itself is couched in highly technical language that only a qualified tax expert can fully grasp. (This provision begins on page 33 of the reconciliation billl that was passed and signed into law.) And it does say the tax falls on “net gain … attributable to the disposition of property.” That would include the sale of a home. But the bill also says the tax falls only on that portion of any gain that is “taken into account in computing taxable income” under the existing tax code. And the fact is, the first $250,000 in profit on the sale of a primary residence (or $500,000 in the case of a married couple) is excluded from taxable income already. (That exclusion doesn’t apply to vacation homes or rental properties.)

The Joint Committee on Taxation, the group of nonpartisan tax experts that Congress relies on to analyze tax proposals, underscores this in a footnote on page 139 of its report on the bill. The note states: “Gross income does not include … excluded gain from the sale of a principal residence.”

And just to be sure, we checked with William Ahern, director of policy and communications for the nonprofit, pro-business Tax Foundation. “Some home sales would see a tax increase under this bill,” Ahern told us, “but it would have to be a second home or a principal residence generating [a gain of] more than $250,000 ($500,000 for a couple).”

So there you have it. The sort of people who would have to pay the tax might include, for example:

  • A single executive making $210,000 a year who sells his $300,000 ski condo for a $50,000 profit. His tax on the sale of that vacation home would amount to $1,900, in addition to the capital gains tax he would have paid anyway.
  • An “empty nester” couple with combined income of over $250,000 a year who sell their $1 million primary residence to move to smaller quarters. If they cleared $600,000 on the sale, they would be taxed on $100,000 of the profit (the amount over the half-million-dollar exclusion). Their health care tax on the sale would amount to $3,800 over and above the usual capital gains levy.

However, a typical home sale would not incur any tax. In March, for example, half of all existing homes sold for $170,700 or less, according to the National Association of Realtors. Obviously, none of those sales could possibly generate a $250,000 profit, and so none would be subject to the tax.

Thus, for the vast majority, the 3.8 percent tax won’t apply. The Tax Foundation, in a report released April 15, said the new tax on investment income (including real estate) “will hit approximately the top-earning two percent of families” when it takes effect in 2013.

The Internal Revenue Service says that to qualify for the $250,000/$500,000 exclusion, a seller must have owned the home and lived there as the seller’s “main home” for at least two years out of the five years prior to the sale.

Source – Brooks Jackson – Fast Check.Org


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Chicago Real Estate Market Summary – July 2011

8 08 2011

With all of the negative economic news that we have been subjected to, I was pleasantly surprised to see some positive real estate numbers for July 2011, for Lakeview, Lincoln Park, Near North and the Loop.

While Unit Sales fell 6.8% in comparison to July 2011, much of that decrease was due to a steep decline in sales in the Loop. Lincoln Park and Lakeview had increases over the same period last year.

Units Under Contract were up a combined 9.1% over last year.  Hopefully, as the effects of the Federal Tax Credits from 2010 begin to fade, we should start seeing sales increases against last year.

Median prices for the combined areas dropped 1.9% against last year, but Lincoln Park showed an increase and Lakeview was even.  This is being helped with dramatic decreases in inventory units and months of supply in comparison to last year.

       
  Jul-11 Jul-10 % +/-
       
Unit Sales – Total 456 487 -6.4
Lakeview 121 104 16.3
Lincoln Park 106 92 15.2
Near North 175 180 -2.8
Loop 54 111 -51.4
       
Unit Sales By Price Point       
0 – $500,000 320 306    4.6
$500,000 – $ 1,000,000 103 122 -15.6
$ 1,000,000 – Up 34 65 -47.7
       
Units Under Contract – Total 494 407  21.4
Lakeview 139 94  47.9
Lincoln Park 86 76  13.2
Near North 196 144  36.1
Loop 73 93 -21.5
       
Unit Inventory – Total 5377 7331 -26.7
Lakeview 1489 1891 -21.3
Lincoln Park 1027 1286 -20.1
Near North 2133 3082 -30.3
Loop 728 1092 -33.3
       
Inventory (Months Of Supply)  8.3 14.6 -43.0
Lakeview 8.1 16.1 -49.6
Lincoln Park 9.2 13.4 -31.7
Near North 8.5 17.7 -52.0
Loop 7.4 9.4 -21.4
       
Median Pricing – Total 357,500 390,000  -8.3
Lakeview 395,000 395,000     0.0
Lincoln Park 426,240 404,750     5.3
Near North 300,738 370,000 -18.7
Loop 303,850 450,000 -32.5

Source – MRED LLC


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Chicago Real Estate Market Summary – June 2011

8 07 2011

June 2011 Unit Sales for Lakeview, Lincoln Park, Near North and the Loop, continued the trend of double-digit decreases  in comparison to June 2010 (which were affected by the various Federal stimulus programs).  This was the first month this year that we did not see an increase in 2011 Unit Sales in comparison to 2009, with the exception of Near North which increased 12.2% over June 2009.

For the second month in a row, June 2011 Units Under Contract posted an increase against June 2010 for the combined areas. Unlike May 2011, not all areas had increases. Lakeview and the Loop were up, while Lincoln Park and Near North were down.

While inventories remain high, the Months of Supply of Inventory dropped dramatically for the second consecutive  month and Median Prices rose slightly.

After the promising results in May, June numbers were mixed and we will have to wait for July results before we see any potential trends.

       
  Jun-11 Jun-10 % +/-
       
Unit Sales – Total 521 721 -26.9
Lakeview 160 234 -31.6
Lincoln Park 102 138 -26.1
Near North 202 266 -24.1
Loop  63  83 -24.1
       
Unit Sales By Price Point      
0 – $500,000 379 518 -26.8
$500,000 – $ 1,000,000 103 148 -30.4
$ 1,000,000 – Up  51  58 -12.1
       
Units Under Contract 561 422 32.9
Lakeview 162  96 68.8
Lincoln Park 120 139 -13.7
Near North 213 246 -13.4
Loop  66  62 6.5
       
Inventory (Months Of Supply) 7.7 14.5 -46.9
Lakeview 7.3 16.3 -55.3
Lincoln Park 6.8 13.1 -47.4
Near North 8.2 14.1 -41.8
Loop 8.7 14.8 -41.6
       
Median Pricing 365,000 360,000 1.4
Lakeview 363,750 339,500 7.1
Lincoln Park 457,500 489,250 -6.5
Near North 350,000 346,250 1.1
Loop 292,000 349,990 -16.6

 

 

Please click on the Market Statistics tab above for more detailed, printable reports

Source –  MRED LLC


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10 Questions And Answers About The Cook County Senior Citizen Homeowner Exemption

21 06 2011

What is a Senior Citizen Exemption?

The Senior Citizen Exemption provides tax relief by reducing the equalized assessed valuation of an eligible residence. This savings is in the form of a deduction on the second-installment real estate tax bill.

I qualified for a Senior Citizen Exemption. Do I have to apply for a Homeowner Exemption separately?

No. Senior Citizens receiving the Senior Citizen Exemption automatically qualify for the Homeowner Exemption and do not have to apply for it separately.

I received the Senior Exemption on my tax bill last year. Do I have to reapply for the Senior Exemption this year?

 Yes. State legislators passed a new law that states that senior citizens have to reapply annually for the Senior Exemption.

What are the eligibility requirements for the Senior Citizen Exemption?

 1 You must be 65 years of age or older during the tax year for which you are applying;

 2 You must either own the property or have a lease or contract which makes you responsible for the real estate taxes; and

3 The property must be your principal residence. If you have moved or plan to move in the future, you may be entitled to a prorated Senior Citizen Exemption, based on the time of occupancy.

To apply for a prorated Senior Citizen Exemption you must submit:

A Senior Citizen Exemption Application Form

 A closing or settlement statement

Copy of a recent property tax bill

Copy of proof of age and residency

 What is the application procedure and what other documents do I need to provide with the application?

1 If you are eligible for the exemption, please complete and sign the Senior Citizen Exemption Application Form. Information pertaining to Permanent Index Number and township can be found on your real estate tax bill.

2 You must also provide the following information:

 Recent Real Estate Tax Bill For Your Home – This includes your residential/property address and index number. If your bill is not mailed to your home, you must supply ONE MORE document that would prove your home address, such as your voter’s registration card, voting record from the tax year(s) for which you are applying, or Driver’s License or Illinois Identification (ID) card showing your address as the property address issued prior to the earliest year for which you are applying.

Proof Of Your Age –  Submit ONLY ONE official document that clearly shows your birth date, such as your Driver’s License, Illinois Identification (ID) Card, Alien Registration Card, Social Security Form 2458, Naturalization Papers, Passport, or Birth or Baptismal Certificate. NOTE: Women who submit documents with maiden name must provide Marriage Certificate(s) to show connection with current name.

What if I own a cooperative?

Owners of cooperative apartments must also submit a stock certificate, occupancy agreement, or trust agreement, along with their application.

I would like to apply by mail. Is there anything I should know?

If you apply by mail, do not send originals of the above documents. Please send copies because the documents cannot be returned to you.

 I would like to apply in person. Is there anything I should know?

If you apply in person at the Assessor’s Office, your documents will be reviewed and returned to you while you wait.

What happens after I have filed for a Senior Citizen Exemption?

 The Assessor’s Office will notify you when your application is approved.

 Can I still receive the Senior Citizen Exemption if my property is listed in the name of my late spouse?

If you are 65 or over, you will qualify for this exemption in your name. Please notify the Taxpayer Services Department and we will send you the proper application forms. Otherwise, your property will receive the exemption for the remainder of the year of your spouse’s death. You will then have to apply when you turn 65. For more information, you may contact the Taxpayer Services Department at (312) 443-7550.

Source – Cook County Assessor’s Office


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Chicago Real Estate Market Summary – May 2011

3 06 2011

Last May while unit sales were showing increases due to the various Federal stimulus programs, units under contract began to decline against the previous year. This was the first sign that the market was not going to continue growing after the stimulus programs ended and unit sales have declined through May 2011.

 May 2011 shows the same trend as a year ago; however, in reverse.  While unit sales are decreasing in comparison to the same period last year, units under contract have shown their first increase since April of 2010. Hopefully, as the artificially inflated numbers of the first half of last year come to an end, the second half of 2011 will begin to show increases over 2010. (2011 sales have been making significant increases against the same periods in 2009 for the last five months.)

It should also be noted that months of supply of inventory dropped dramatically in May 2011 in comparison to 2010 in all areas.

       
  May-11 May-10 % +/-
       
Unit Sales 464 581 -20.4
Lakeview 143 203 -29.6
Lincoln Park 76 105 -27.6
Near North 177 199 -11.1
Loop 68 74 -8.1
       
Unit Sales By Price Point      
0 – $500,000 331 411 -19.5
$500,000 – $ 1,000,000 101 127 -20.5
$ 1,000,000 – Up 36 47 -23.4
       
Units Under Contract  571 430 +32.8
Lakeview 163 111 +46.8
Lincoln Park 105 94 +11.7
Near North 234 183 +27.9
Loop 69 42 +64.3
       
Inventory (Months Of Supply) 7.8 14.1 -44.8
Lakeview 7.5 13.9 -46.2
Lincoln Park 8.2 11.2 -27.4
Near North 7.7 14.1 -45.7
Loop 8.4 21.3 -60.3
       
Median Pricing – Total 359,200 366,500 -2.0
Lakeview 375,000 344,000 +9.0
Lincoln Park 460,000 439,000 +4.8
Near North 335,000 355,000 -5.6
Loop 290,000 352,500 -17.7

 

 

Please click on the Market Statistics Tab above for more detailed, printable reports.

 

Source – MRED LLC


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Chicago Real Estate Market Summary – April 2011

10 05 2011

 April 2011 sales continued the trend of double-digit decreases in comparison to April 2010 and significant increases compared to April 2009. Combined Unit Sales were up 12.2% and Units Under Contract were up 8.5% compared to March of 2009.( Lincoln Park and the Loop were exceptions with decreases against both 2010 and 2009.) This is the fourth month in a row that we have seen increases against 2009 in the combined areas. While the decreases in comparison to the tax credit stimulated numbers of 2010 are disappointing, the consistent gains against 2009 indicate that we are slowly making  progress.

Months of supply of inventory increased slightly, while median prices dropped for the month.

When looking at sales by price point, all had decreases against 2010, but increased substantially against 2009.

Unit Sales for the combined areas were down 57.2% compared to April 10. 

Homes priced under 500,000 were down 31.4.8%

Homes priced from 500,000 to 1,000,000 decreased 22.6%.

Homes priced over 1,000,000 declined 37.7%

Units under Contract fell 17.5% compared to April 10. 

Months of Supply increased .01% for the combined areas.

Median Pricing  decreased 1.9% compared to April 10.

The numbers below reflect the combined areas of Lakeview, Lincoln Park, Near North and the Loop.

  Apr -10 Apr -11 % +/-
       
Unit Sales – Total 527 367 -57.2
Lakeview 156 115 -68.6
Lincoln Park 93 62 -33.3
Near North 186 157 -15.1
Loop 92 33 -64.1
       
Units Under Contract 718 525   -17.5
Lakeview 247 163 -34.0
Lincoln Park 139 92 -33.8
Near North 248 207 -15.9
Loop 83 63 -26.7
       
Inventory (Months Of Supply) 8.7 8.8 +.01
       
Median Pricing 372,000 365,000 -1.9

 

 

 

Please click on the Market Statistics Tab above for more detailed, printable reports.

 

Source – MRED LLC


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6 Questions And Answers About The Home Improvement Exemption

26 04 2011

 

  What Is the Home Improvement Exemption?

 The Home Improvement Exemption allows you to increase the value of your home with up to $75,000 worth of improvements without increasing your property taxes for at least four years.

  Who qualifies for a Home Improvement Exemption?

The exemption is available to owners of single-family homes, condominiums, cooperatives, and apartment buildings up to six units.

  How does a Home Improvement Exemption work?

You will automatically receive the exemption when our office field checks the building permit for the improvement. A notice will be sent to you after we complete the check.

  What if there is damage to my home?

The Home Improvement Exemption can also be used for repair necessitated by structural damage as a result of severe weather conditions, such as flooding.

  What is not covered by a Home Improvement Exemption?

 The exemption is not granted for loss of personal property, normal weather damage, or routine maintenance. Routine maintenance includes repairs to or replacement of parts that would not increase the value of your property. The following are examples of normal upkeep:

  • Repair or replace roofing materials, sidewalks, driveways, or fencing
  • Insulate and/or add storm windows and doors
  • Add or replace gutters and downspouts
  • Place siding over existing frame structure
  • Add or improve trees, lawns, and landscaping
  • Paint, decorate, plaster, or change exterior ornamentations
  • Replace furnace, or replace old heating systems with solar heating
  • Replace kitchen cabinets, flooring, fixtures
  • Replace or add water softener, or add larger hot water heater
  • Add outdoor lighting, burglar or fire alarms
  • Replace electrical systems or plumbing fixtures
  • Install above-ground swimming pool or outdoor playground facilities
  • Add automatic garage door opener
  • Add aluminum soffit and facia

 

  Who can I call to find out if I qualify for a Home Improvement Exemption?

To learn whether you may qualify for the Home Improvement Exemption, call the Cook County Assessor’s Office at 312/443-7550.

Source – Cook County Assessor’s Office


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