Chicago Real Estate Notes

February Market Statistics Update – Sales Up, Prices Flat

John Irwin — Tue, 02 Mar 2010 16:56:27 +0000

February 2010 showed significant improvement over February 2009 in almost every category of residential sales for Lakeview, Lincoln Park, Near North and the Loop.

The only exceptions were slight decreases in median and average prices.

UNIT SALES – Overall residential home sales for the combined areas rose from 173 units sold in Feb 09 to 254 units sold in Feb 10, for a 47% increase.

Lakeview increased 25% from 44 units in Feb 09 to 55 units in Feb 10

Lincoln Park increased 65% from 26 units in Feb 09 to 43 units in Feb 10

Near North increased 21% from 82 units in Feb 09 to 99 units in Feb 10

The Loop increased 171% from 21 units in Feb 09 to 57 units in Feb 10

UNITS UNDER CONTRACT – The combined areas showed a 76% increase with 273 units in Feb 09 and 480 units in Feb 10.

INVENTORY – Weeks of supply for the combined areas dropped from 19.4 in Feb 09 to 10.9 in Feb 10 for a 44 % decrease.

PRICING – Median prices for the combined areas decreased slightly from 403,131 in Feb 09 to 400,000 in Feb10.

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

Source – MRED LLC

First Time And Repeat Homebuyers Tax Credit – Last Call

John Irwin — Tue, 16 Feb 2010 21:48:07 +0000

In order to take advantage of the First Time And Repeat Homebuyers Tax Credit, you must have a contract by April 30 2010 and close by June 30, 2010. The National Association Of Home Builders has provided a great link that explains the details of this tax credit opportunity. Please click on http://www.federalhousingtaxcredit.com/

Use IRS form 5405 to apply for the credit - IRS Form 5405

January Market Statistics Update – A great start to the new year

John Irwin — Tue, 02 Feb 2010 23:08:35 +0000

January 2010 showed significant improvement over January 2009 in almost every category of residential sales for Lakeview, Lincoln Park, Near North and the Loop.

Lincoln Park carried the area with a 120% increase in unit sales.

While these numbers are modest compared to the “boom years”, we are making progress and moving in the right direction.

UNIT SALES – Overall residential home sales for the combined areas rose from 210 units sold in Jan 09 to 294 units sold in Jan 10, for a 40% increase.

Lakeview increased 6% from 51 units in Jan 09 to 54 units in Jan 10

Lincoln Park increased 120% from 24 units in Jan 09 to 53 units in Jan 10

Near North increased 23% from 92 units in Jan 09 to 113 units in Jan 10

The Loop increased 72% from 43 units in Jan 09 to 74 units in Jan 10

UNITS UNDER CONTRACT – The combined areas showed a 105% increase with 204 units in Jan 09 and 420 units in Jan 10.

INVENTORY – Weeks of supply for the combined areas dropped from 24.5 in Jan 09 to 11.1 in Jan 10 for a 55 % decrease.

PRICING – Median prices for the combined areas increased 10% from 393,555 in Jan 09 to 434,950 in Jan10.

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

Source – MRED LLC

Changes To Your First Property Tax Installment For 2009

John Irwin — Tue, 26 Jan 2010 17:00:20 +0000

If your first installment of your 2009 property taxes seems higher than last year, it probably is. The Illinois Legislature passed a law ordering that all 1st Installment tax bills be calculated at 55 percent of the prior year’s total property tax obligation. This is a change from previous 1st Installment bills when the calculation rate was 50 percent . The 2009 First Installment due date will be Tuesday, March 2, 2010.

Please Don’t Ignore Your Hot Water Heater!!!!

John Irwin — Tue, 19 Jan 2010 20:52:30 +0000

Your hot water heater silently serves you year after year; however, they don’t last forever. Knowing when to replace it can save you time, money and potential damage to your home. Here are some tips of what to look for.

The first sign that you need to replace your water heater is its inability to heat the water effectively if at all. If the water is slow to heat or does not get as hot, you may need a new water heater. If outside temperatures are colder, the cooler water may just be the result of the heater having to work harder to heat the water. First try to adjust the heat settings on the heater. If this does not improve the situation, you may need a new heater.

A leaking tank is another sign that you need a new water heater. If the leak is a small drip and it could be fixed with a patch, attempt to fix it yourself but keep an eye on the leak. The patch may come off and the leak could start again. If the leak is large and in need of a welded repair, consult a professional to do the job. The DIY weld could result in further damage.

Corrosion can result from a leak that has been dripping for a long time. This will reduce the efficiency and productivity of a water heater. Corrosion can also make it more difficult to disassemble your water heater to replace one part in hopes of not having to replace the whole unit.

If the age of your water heater is over 10-15 years old, consider replacing the system before it goes bad. The functionality and efficiency of water heaters decline as years of use go by and the poor heating quality could be due to an aged machine. If you are going to replace an old system, replace the pipes that come from the heater as well. This will ensure a high quality heat as the entire system has been replaced.

Newer models are higher efficiency and last longer than older models. Look for the Energy Star label on the appliance’s sticker. Before purchasing a new unit, you need to obtain some information. What type of fuel is needed? Natural gas, electric or propane? Find out what gallon size you will need. Do not buy a water heater that is too big for the space you have and make sure the new unit can fit through the door through which you carry it in the home..

Source: DiscoveryArticles.com

The New Year Brings New Real Estate Laws

John Irwin — Tue, 12 Jan 2010 20:39:01 +0000

A number of new real estate-related laws took effect January 1, 2010. We’ve highlighted the two we believe are most significant.

CONTRACTOR MUST GIVE 10-DAY LIEN NOTICE – Public Act 96-654 (HB 236) changes the existing Mechanics Lien Act to require that a contractor for improvements of an owner-occupied single- family residence give the owner written notice within 10 days after recording a lien against any property of the owner. The notice is deemed served when it is sent or personally delivered. If timely notice is NOT given and, as a result, the owner suffers damages before notice is given, the lien is extinguished to the extent of the damages. The legislation stipulates that the mere recording of the lien claim is not considered damages. This new provision will NOT apply to subcontractors and applies only to contracts entered into after January 1, 2010.

PROPERTY TAX APPEAL ASSISTANCE – Public Act 96-122 (SB 207) enacts the Homestead Assessment Transparency Act to assist homeowners who seek to appeal property tax assessments. Counties will be required after January 1^st to make available to the public a detailed description of the rules and procedures for hearings before the board of review. This must include an explanation of any applicable burdens of proof, rules of evidence, timelines, and any other procedures that will allow a property taxpayer to present his/her case before the board. Such information must also be made available on the county website (if such a website exists). Additionally, the new law requires the chief county assessment officer to provide a plain-English explanation of all township, county and state equalization factors – including the rationale and methods used to determine equalizations. The existing law related to the notice that must be mailed to taxpayers was greatly expanded to specify additional information that must be included for the benefit of the taxpayer.

Source — Illinois Realtor Magazine

December Market Statistics Update – encouraging end to 2009

John Irwin — Tue, 05 Jan 2010 17:16:44 +0000

December ended on a high note for the combined areas of Lakeview, Lincoln Park, Near North and the Loop, as all categories showed improvement comparing Dec 08 to Dec 09 and Dec 09 to Nov 09.

Near North carried the area with some very significant increases. Lincoln Park was also up, while Lakeview and the Loop were down.

While we still have a long way to go, 2009 ended with some very positive trends.

UNIT SALES – Overall residential home sales for the combined areas rose from 384 units sold in Dec 08 to 473 units sold in Dec 09, for a 23% increase. (Dec 09 was up 16 % over Nov 09)

Lakeview decreased 9% from 98 units in Dec 08 to 89 units in Dec 09

Lincoln Park increased 11% from 56 units in Dec 08 to 62 units in Dec 09

Near North increased 83% from 138 units in Dec 08 to 253 units in Dec 09

The Loop decreased 25% from 92 units in Dec 08 to 69 units in Dec 09

UNITS UNDER CONTRACT – The combined areas showed a 77% increase with 247 units in Dec 08 and 438 units in Dec 09. (Dec 09 was up 29% over Nov 09)

INVENTORY – Weeks of supply for the combined areas dropped from 19.0 in Dec 08 to 9.8 in Dec 09 for a 48 % decrease (Dec 09 decreased 32% over Nov 09)

PRICING – Median prices for the combined areas dropped slightly from 389,950 in Dec 08 to 388,900 in Dec 09. (Dec 09 prices were up 6.5% over Nov 09)

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

Source – MRED LLC

Chicago Winter Weather – Protecting Your Pipes – Part 2

John Irwin — Tue, 15 Dec 2009 16:31:58 +0000

Home owners are often surprised when their pipes freeze because the house doesn’t seem cold. They are puzzled about why the hot water pipes always freeze first. That tendency seems to defy logic, but there is a good reason for this phenomenon. Hot water pipes freeze faster than cold water pipes because hot water contains less gases and tends to supercool and freeze from the center outwards. Cold water, however, tends to crystallize and form an ice cover, allowing the water to continue flowing under the ice layer.

Source – Tim Kerfin – Kerfin Inspections Inc.

Chicago Winter Weather – Protecting Your Pipes

John Irwin — Tue, 08 Dec 2009 15:09:04 +0000

It’s that time of year in Chicago and making sure that your pipes don’t freeze is a great opportunity to save a significant amount of money in damage and repairs. Take a minute to read the following tips to be sure that your home is safe.

Why Pipe Freezing Is a Problem

Water has a unique property in that it expands as it freezes. The expansion puts tremendous pressure on whatever is containing it, including metal or plastic pipes. No matter the “strength” of a container, expanding water can cause pipes to break. Pipes that freeze most frequently are those that are exposed to severe cold, like outdoor hose bibs and water supply pipes in unheated interior areas like basements and crawl spaces, attics, garages or kitchen cabinets. Also, pipes that run against exterior walls that have little or no insulation are also subject to freezing.

Preventing Frozen Pipes

With the onset of cold weather, help prevent freezing of water supply lines and pipes by following some simple recommendations:

• Keep the thermostat set to the same temperature both during the day and at night. By temporarily suspending the use of lower nighttime temperatures, you may incur a higher heating bill, but you can prevent a much more costly repair job if pipes freeze and burst.

• Locate your home’s water shut-off valve and ensure it works, before it’s ever needed in an emergency.

• Open sink cabinet doors in kitchens and bathrooms to allow more heat to reach pipes underneath, particularly if the sink is located along an exterior wall.

• Let the water run if the temperature dips below freezing. (A stream slightly smaller than a pencil width should be sufficient.) Faucet farthest from the street should be the ones left running. Using cold water will save your gas or electric bill.

• Disconnect garden hoses from roof decks and front door spigots and shut off and drain water from pipes leading to outside faucets. • Eliminate drafts. Check around the home for areas where water supply lines are located in unheated areas and take measures to prevent the flow of cold air in these areas. Both hot and cold water pipes in these areas should be insulated. A hot water supply line can freeze just as a cold water supply line can if water is not running through the pipe and the water temperature becomes cold.

• If you will be away from home or your home is vacant, keep the thermostat at a reasonable temperature to make sure all areas with water pipes are kept above freezing.

To Thaw Frozen Pipes

If you turn on a faucet and only a trickle comes out, suspect a frozen pipe

. Locate the suspected frozen area of the water pipe. Likely places include pipes running against exterior walls or where your water service enters your home.

• If a water pipe freezes, never try to thaw it with an open flame or torch. You can use a hair dryer or portable heater, but always be careful of the potential for electric shock in an around standing water.

• If a pipe freezes, completely open the cold water faucet nearest the frozen pipe. This will relieve the pressure and reduce the chance of breakage.

• Running water through the pipe will help melt more ice in the pipe.

• Apply heat until full water pressure is restored. If you are unable to locate the frozen area, if the frozen area is not accessible or if you can not thaw the pipe, call a licensed plumber.

• Check all other faucets in your home to find out if you have additional frozen pipes. If one pipe freezes, others may freeze, too.

Source – Capstone Properties

November Market Statistics Update – we have come a long way from last year

John Irwin — Tue, 01 Dec 2009 17:50:39 +0000

We traditionally see a drop in sales and other indicators when we compare October to November and this year is no exception for Lakeview, Lincoln Park, Near North and the Loop. I thought it would be interesting to look at November 2009 vs November 2008 for a more telling comparison. While we still have a long way to go, we have made significant progress over last year.

UNIT SALES – Overall residential home sales for the combined areas rose from 241 units sold in Nov 08 to 385 units sold in Nov 09, for a 59.7% increase

Lakeview increased 74.6% from 71 units in Nov 08 to 124 units in Nov 09

Lincoln Park increased 71.0 % from 38 units in Nov 08 to 65 units in Nov 09

Near North incresased 52.6% from 95 units in Nov 08 to 145 units in Nov 09

The Loop increased 45.7% from 35 units in Nov 08 to 51 units in Nov 09

UNITS UNDER CONTRACT – The combined areas showed a 56.8% increase with 234 units in Nov 08 and 367 units in Nov 09.

INVENTORY – Weeks of supply for the combined areas dropped from 22.1 in Nov 08 to 13.1 in Nov 09 for a 40.7 % decrease

PRICING – While median prices of homes sold dropped to 365,000 in Nov 09 from 370,000 units in Nov 08 or 1.3%, this is still a respectable number when one considers the drop in home prices in past year.

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