Clay Bricks vs Concrete Bricks – What is the Difference?

21 02 2012

All bricks are not created equal and if you are considering buying a home or own a home you may be interested in some of the differences between clay brick and concrete brick, both of which are used extensively in Chicago.

The following excerpts from an article from Bricks inc. explain the differences between these two materials.

Throughout the course of history, brick has been one of the most versatile and widely used materials for construction.  Brick is made by mining clay, a natural material, and creating slurry, which is extruded through a machine.  The end or cap where the brick comes out is referred to as a “pug”.  The pug determines the size and sometimes the texture of the brick.  Once the brick is cut and dried, it is fired in kilns at up to 2,000 degrees.

Brick walls often served as the structure, weather barrier, vapor retarder, insulator, and sometimes the interior finish of a structure.  Brick buildings, up until the introduction of concrete masonry units (CMU), were built by stacking multiple wythes of brick and tying them together.  The wythes of brick supported the load of the structure.  Flemish bond was a common way of tying multiple wythes of brick together.

The advent of Cinder Block in 1917 changed this method of construction.  Now CMU supports the weight of the structure and the brick acts as a veneer to conceal the CMU.

Other advances that helped make clay masonry what it is today was the creation of portland cement.  Portland cement gave mortar much higher compressive strengths, giving a brick wall even more overall strength.

The most significant difference between CMU and brick is how the materials are manufactured.  CMU is made of portland cement and aggregates, usually sand and gravel.  CMU is cured at high humidity and temperatures to create a bond between the cement and aggregates.

The differences in manufacturing and material content give CMU and brick very different physical properties, affecting the units long after they are installed.  CMU will shrink while brick expands.  Therefore, CMU requires control joints while brick requires expansion joints.  Control joints are meant to control the cracking that occurs due to the units shrinking.  Over time the sealant used in control joints must be replaced.  The units must be sealed and the mortar must also contain a sealant; all of which add to its installed cost.  Brick buildings will continue to expand for the first couple of years, ultimately giving them a tighter seal.

The color of brick is dictated by the color and type of clay that is mined.  CMU’s color is based on pigments that are used to paint the units.  Overtime, the weathering these units must incur can fade the pigments.   Clay tends to retain color and structural appeal much longer than cement.

CMU’s physical properties also explain why its absorption rate is different from brick.  CMU is a very porous material and will absorb water at much higher rates than brick.

If you are using brick for decorative purposes, then concrete may be your better option. When it comes to brick shape, concrete is a much more versatile product. Concrete brick comes in a myriad of shapes – from squares and triangles to octagons and trapezoids. Clay, on the other hand, is typically limited to more traditional shapes such as rectangles. Concrete can also be stamped or textured to provide unique visual appeal.

Please consult a qualified Home Inspector for answers to more detailed questions about these materials and how they may relate to a specific property.

Source – Bricks Inc





Chicago Real Estate Market Summary – January 2012

8 02 2012

  January started the new year with mostly positive results. Unit Sales and Units Under Contract increased when compared with January 2011. This seems to have been driven by sales of homes priced under $500,000, as homes priced over $500,000 declined against 2011.

 Inventory Units and Months Of Supply decreased considerably against last year; however, inventories remain high enough to continue to drive median prices down.  Two interesting exceptions were Lincoln Park where January 2012 median prices showed an increase against 2011 and Lakeview which was even in comparison to last year.   

While we seem to be making progress in sales and inventory, pricing will probably be the biggest challenge of 2012

  Jan-12 Jan-11 % +/-
       
Unit Sales – Total 267 233 14.6
Lakeview 69 53 30.2
Lincoln Park 53 46 15.2
Near North 111 109 36.0
Loop 34 25 36.0
       
Unit Sales By Price Point       
0 – $500,000 199 160 24.4
$500,000 – $ 1,000,000 48 50 -4.0
$ 1,000,000 – Up 23 25 -8.0
       
Units Under Contract – Total 416 312 33.3
Lakeview 109 77 41.6
Lincoln Park 80 53 50.9
Near North 174 137 27.0
Loop 53 45 17.8
       
Unit Inventory – Total 3,843 5,451 -29.5
Lakeview 1021 1401 -27.1
Lincoln Park 749 891 -15.9
Near North 1605 2442 -34.3
Loop 468 717 -34.7
       
Inventory (Months Of Supply) 7.0 14.1 -50.4
Lakeview 7.0 14.8 -52.5
Lincoln Park 6.9 13.8 -50.1
Near North 7.2 14.4 -50.4
Loop 6.7 12.6 -46.7
       
Median Pricing – Total 325,000 380,000 -14.5
Lakeview 355,000 355,000     0.0
Lincoln Park 450,000 388,382    15.9
Near North 309,500 385,000   -19.6
Loop 247,850 335,000    -26.2

Source – MREDLLC  (Numbers reflect only properties listed in MLS of Northern Illinois)





Chicago Real Estate Market Summary – December 2011

9 01 2012

After four months of consistent results, Lakeview, Lincoln Park, Near North and the Loop posted very mixed numbers when comparing December 2011 to 2010.

Unit Sales dropped  for the first time since July of 2011, for the combined areas against the same time period last year; however, Lakeview and properties priced $500,000 and under showed increases. Properties priced over $1,000,000 dropped 49.1%.

Units Under Contract increased for all areas, while Inventory Units and Months of Supply  continued dramatic decreases over the same period last year. Inventory levels remain high enough to continue to drive prices down. Median prices in December dropped 18.8% when compared to 2010.

       
  Dec-11 Dec-10 % +/-
       
Unit Sales – Total 352 373  -5.6
Lakeview  76  54   40.7
Lincoln Park  29  40  -27.5
Near North 109 107     1.9
Loop  40  42    -4.8
       
Unit Sales By Price Point       
0 – $500,000 254 243     4.5
$500,000 – $ 1,000,000  73  78    -6.4
$ 1,000,000 – Up  28  55  -49.1
       
Units Under Contract – Total 326 302   7.9
Lakeview  62  45   37.8
Lincoln Park  27  21   28.6
Near North  99  91     8.8
Loop  40  38     5.3
       
Unit Inventory – Total 3,776 5,519 -31.6
Lakeview  744 1017  -26.8
Lincoln Park  363  478  -24.1
Near North  881  1469  -40.0
Loop  330  568  -41.9
       
Inventory (Months Of Supply)  8.8 14.4 -38.8
Lakeview  8.8 18.4  -52.0
Lincoln Park 10.0 17.9  -44.1
Near North  6.7 13.0  -48.6
Loop  5.9 10.6  -43.9
       
Median Pricing – Total 315,000 388,000 -18.8
Lakeview 253,500 322,500  -21.4
Lincoln Park 288,000 351,500  -18.1
Near North 247,000 270,000    -8.5
Loop 211,500 261,250  -19.0

Numbers represent only properties listed in the MLS of Northern Illinois.

SOURCE – MRED LLC





Chicago Real Estate Market Summary – November 2011

8 12 2011

November 2011 showed  continued increases in Unit Sales and Units Under Contract and decreases in Inventory and Months Of Supply for the fourth consecutive month in Lakeview, Lincoln Park, Near North and the Loop  when compared to November 2010.

 Inventory levels continue to decline in comparison to a year ago and averaged 8.7 months of supply this year for the combined areas, compared to 18.1 months of supply in November 2010. These levels are still high enough to have a negative effect on median pricing which dropped 10.1%

When looking at the combined areas by price point, homes priced under $500,000 and those priced over $1,000,000 showed unit sales increases, while homes priced between $500,000 and $1,000,000 showed a 17.1 % decrease in comparison to November 2010.

       
  Nov-11 Nov-10 % +/-
       
Unit Sales – Total 311 287   8.4
Lakeview   81   73  11.0
Lincoln Park   57   55    3.6
Near North 125 119    5.0
Loop   48   40   20.0
       
Unit Sales By Price Point       
0 – $500,000 216 194  11.3
$500,000 – $ 1,000,000   58   70 -17.1
$ 1,000,000 – Up   41   31  32.2
       
Units Under Contract – Total 377 278  35.6
Lakeview 100   73  37.0
Lincoln Park   72   61  18.0
Near North 156 113  38.1
Loop   49   31  58.1
       
Unit Inventory – Total 4,269 6,103 -30.1
Lakeview 1146 1525 -24.9
Lincoln Park  848 1045 -18.9
Near North 1763 2654 -33.6
Loop  512  879 -41.8
       
Inventory (Months Of Supply)  8.7 18.1 -51.8
Lakeview  8.5 16.8 -49.4
Lincoln Park  8.7 13.3 -35.2
Near North  9.0 19.7 -54.5
Loop  8.4 24.5 -65.8
       
Median Pricing – Total 335,000 372,000 -10.1
Lakeview 385,000 415,000   -7.1
Lincoln Park 395,000 457,000 -13.7
Near North 305,000 330,000   -7.6
Loop 238,500 324,500 -26.5
        

Source - MREDLLC





Chicago Real Estate Market Summary – October 2011

8 11 2011

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

Inventory levels continue to decline dramatically in comparison to a year ago and averaged 9.1 months of supply for the combined areas. These levels are still high enough to have a negative effect on median pricing which dropped 17.8%

Lincoln Park was an exception to otherwise consistent results with the only decrease in unit sales by 5.8%, yet posting a 20.3% increase in median pricing.

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

  Oct-11 Oct-10 % +/-
       
Unit Sales – Total 305 291   4.8
Lakeview   79   69  14.5
Lincoln Park   48   57 -15.8
Near North 142 130    9.2
Loop   36   35    2.9
       
Unit Sales By Price Point       
0 – $500,000 224 207   8.3
$500,000 – $ 1,000,000  60  49  22.4
$ 1,000,000 – Up  21  35 -40.0
       
Units Under Contract – Total 395 334  18.3
Lakeview 109  88  23.9
Lincoln Park  73  70   4.3
Near North 160 140  14.3
Loop  53  36  47.2
       
Unit Inventory – Total 4746 6573 -27.8
Lakeview 1309 1641 -20.2
Lincoln Park  949 1162 -18.3
Near North 1924 2872 -33.0
Loop  564 898 -37.2
       
Inventory (Months Of Supply) 9.1 16.2 -43.7
Lakeview 9.0 15.2 -40.7
Lincoln Park 9.7 13.1 -26.0
Near North 9.3 16.9 -45.4
Loop 8.2 21.7 -62.5
       
Median Pricing – Total 320,500 390,000 -17.8
Lakeview  315,000  395,000 - 20.3
Lincoln Park  516,250  463,000   11.5
Near North  260,050  390,000 -33.3
Loop  287,500  252,500   13.3

Source – MREDLLC





Split Faced Block Homes in Chicago – Issues and Solutions

25 10 2011

There has been little split faced block used in new construction in the past few years in Lincoln Park, Lakeview and Near North. I was recently surprised to see a new three flat being constructed on Wrightwood Avenue utilizing this cement based  block. While the city imposed some restrictions on the  use of split faced block in 2009, I was interested in the pros and cons of the material and how existing buildings may be affected as they age. The following excerpts, from an article from Willian Decker, explain in some detail the history, issues and solutions of split faced block in Chicago construction.

WHAT IS SPLIT FACED BLOCK AND WHY WAS IT USED?:

For the last 15 years or so, especially during the building boom of the early to mid 2000′s, there were many new condominium buildings constructed in the Chicago area.  Many of these condominium buildings utilized a newer exterior masonry product that is commonly called split faced block.  This material looked like an 8″ thick cinder block, but had a rough face, making it look like stone.  The material is manufactured using aggregate, Portland cement and course sand.  During manufacture, a complete block is “split” to form two pieces, each with a rough face.  The finished product resembles  rock-faced masonry in Richardsonian Romanesque houses popular in the mid-1880s.  But, as we shall see, prioritizing form over function can lead to long-term problems when building houses.

Split faced block was commonly used as the exterior wall cladding on the sides and rear of 3, 6 and 8 unit condominium buildings, with the front of the buildings, usually, being covered with brick or stone.  “Was used” is the operative phrase because using this material in new construction residential buildings was stopped, in the Chicago area, in late 2009.

Split faced block was chosen by builders for a number of reasons, but the biggest one was cost.  Here are the cost factors:

  • - Split faced block is inexpensive to buy.

  • - Being larger than a brick, it is faster to install.

  • - This block is strong enough to use as a structural wall (i.e. a wall that actually supports the building) and attractive enough to use as an exterior cladding wall at the same time (this is, technically, what is called a single wythe wall, a wall that is only one layer thick).

  • - The material could be installed by less expensive, newly immigrated,  non-union workers.

PROBLEMS AND CAUSES:

The problems seen with many split faced block buildings have been the result of water intrusion.  The symptoms include water stains on ceilings and walls, warping and buckling hardwood floors, water dripping from exterior wall outlet and light switch boxes, musty smells and mold formation.  It is important to realize that these are not the problems, they are merely the symptoms or the real problem which is water intrusion through the block.  Many times, home owners will have the roof replaced or “fixed” because of suspected leaking when the real problem is not the roof.  The best solution is always to solve the primary issue (the water intrusion) before addressing the secondary symptoms.

To fully understand why split faced block houses and buildings have water problems, it is first necessary to understand how these structures are built.  The first thing to understand is that all masonry is porous and absorbs water.  Brick, stone, cinder block and split faced block will all absorb water.  So why aren’t all the old brick and stone houses having water problems?  The answer is that they were built as a multiple wythe wall.  Multiple wythe (width) walls are actually two (and sometimes three) walls in one.  The inner one or two widths are structural and support the building’s weight, while the outer wall (sometimes called a veneer wall) does not.  Between the inner and outer walls is an air gap, usually about 1″ wide.  Water will travel in pretty much any direction, based upon gravity, capillary action and heat gradients, but the one thing that water will not go through is an air gap.  This is the biggest issue with split faced block buildings, they were, almost always, built with single wythe walls.

Even when built in the single wythe configuration, split faced block buildings can avoid water intrusion problems.

Coping flashing – The top of the wall (also called the parapet) must be properly sealed.  The top of the wall is usually covered with a piece of stone.  This stone is supposed to keep rain water from entering the top of the wall and seeping through the masonry.  Many masons are not aware that this stone, itself, is porous and, given time, moisture will still get through.  Best practices call for the installation of a non-porous membrane (called flashing) under the entire width of the coping stone.  This serves as a barrier to water intrusion.  This construction detail is crucial because the majority (60 – 90%, depending on the condition and construction of the building) of the intruding water enters the wall through the coping stone.

Mortar and block cracks - Another concern is cracking of the mortar.  Intuitively, we think that big cracks in the mortar between the block will allow more water to enter the wall.  In fact, the opposite is true.  Big cracks do allow water to enter, but they also allow this same water to drain out.  Small, hairline cracks are very deceptive.  They do not just “allow” water to enter the crack, that actually suck it in through a process called capillary action.  Because the crack is so narrow, the surface tension of the water draws in water into the crack, where it is soon absorbed by the stone’s natural porosity.  Another problem with the mortar is caused by the employment of masons who do not understand the local conditions.  Some newly immigrated masons have a long tradition, “from the old country” to add more sand to the mortar than is usually called for.  They believe that this will make the mortar stronger, when it actually makes the mortar more water absorbent.  Both these factors lead to more water being absorbed into the block.

Flashing - When building a house, all areas that can possibly allow water to enter the building should be, so to speak, waterproofed.  The problem is that almost impossible because most building materials (wood, stone, masonry, siding) are porous.  These areas must be “flashed”.  Flashing involves installing a water impermeable barrier (vinyl or metal) between the outside and the inside of the house, and between building materials of different water absorptive levels (i.e., between wood and masonry).  Flashing materials do not allow water (or water vapor) to pass through them and act to drain and shed any moisture absorbed in the wall down and out.

BTW:  Rule # 101 for home inspectors is “Caulking is NOT flashing!”.  Caulk will crack, come loose and deteriorate.  Any opening that is caulked (window and door frames, roof penetrations, bathtub / tile corners) must also have flashing of some sort behind the caulk.  Caulk alone will not stop water and, in most cases, is more cosmetic than functional.

Joist flashing - The floors and roof of these buildings are supported by floor and roof joists.  Commonly, these joists are engineered wooden trusses, specially designed and manufactured assemblies that are much stronger than a normal solid piece of lumber.  They are usually constructed of lengths of 2 x 4 lumber secured with metal plates called gussets.  These truss joists are inserted into pockets in the block masonry walls.  There should be a flashing membrane installed between the block and the wooden truss to keep water away from the wood.  The truss should also be installed with supporting shims so that there is an air gap between the truss’s wood and the masonry.  The membrane and the air gap both provide protection against water wicking into the truss.  It is never a good idea for wood to get wet or be in contact with masonry.  Problems occur when the builders, a) do not install the flashing properly and / or,  b) grout the truss end pocket instead of shimming.  In both cases, moisture from the masonry wicks into the wooden truss ends, rotting the wood and rusting the securing gussets.  As we shall see, later, this can lead to a very serious problem.

Exterior wall flashing – The other reason for the joist flashing is to catch any moisture that is draining down, within the wall, and direct it outward, away from the building.  This flashing membrane should be upturned on the interior side of the wall (so as to catch and drain the water outward)  and extend out of the exterior side of the wall, forming a drip edge.  The drip edge should extend, at least, 5/8″ away from the wall.  Current national construction standards call for the exterior drip edges to be made of stainless steel, for durability.

Many times, the masons (or the insulation sub-contractors) do not properly turn up the interior end of the flashing and this allows water to drain into the building, warping hardwood floors and causing floor tiles to crack.  Similarly, many builders fail to properly extend the exterior drip edge far enough outward from the exterior of the wall, which causes water (both already in the wall and water falling on the wall from rain) to be sucked back into the masonry mortar.  It is a very funny circumstance that many builders do not properly install this flashing because they believe that the buyers will think it looks “ugly”.  Functionality should always trump any cosmetics of a building and they should be designed to be properly appealing in the first place.

SOLUTIONS::

Exterior wall sealing - The exterior face of split faced block MUST be sealed.  Sealing adds water impermeability to the block and acts to shed water off the surface.  When the exterior wall of block is not sealed, and depending upon local weather conditions, rain water and humidity in the air is drawn into the block.  This moisture travels through the masonry into the insulation and drywall.  It should be stressed that the majority (60 – 90%) of the water intrusion DOES NOT come through the walls, from the sides, but through improperly flashed parapet wall coping stones and stone window sills.  That being said, the moisture intrusion through the walls must not be ignored.

A curious phenomenon that we have observed, many times, is what is known as “solar loading”.  Imagine a large building with split faced block sides and the south side exposed to the sun.  It rains for a couple of days, not a hard driving rain but just a steady drizzle.  There are no water intrusion problems while it is raining.  Finally, the rain stops and the sun comes out.  After 4 to 6 hours (around 1:00 PM or so) water starts staining the interior wall and dripping through electrical outlet and light switch covers on the south side.  One wonders why the water didn’t come in during the rain, but does when the sun is shining.

What is happening is that the sun is heating the exterior block wall.  Intuitively, one thinks that the sun will dry the water.  In reality, the sun is only “drying” the moisture on the very  surface of the block.  The water that has already been absorbed is actually being driven further into the masonry because the heat of the sun is expanding its volume, increasing the vapor pressure and further pushing the water that was already in the masonry out into the insulation, drywall and out the wall.

It is interesting to note that, contrary to common sense, masonry buildings, in fact, do most of their drying out during the winter, not the summer.  In the winter, heat moves, outward, from the heated living space.  As this heat moves, it pushes any moisture in the masonry ahead of it (heated water expands).  When this water reaches the exterior surface of the masonry, the cold, dry air causes it to evaporate.  Because of a couple of relatively warm (and wet) winters in our area, problems with water intrusion in masonry has been much more pronounced.

Two important things to remember are:

1) Absorbent exterior masonry should be sealed, and

2) Deep and complete drying of masonry walls occurs during the winter, when the temperatures (and humidity levels) are low (single digit temperatures) for a week or two.

The old, commonly accepted best practices method of split faced block sealing used to be applying a “pigmented, silicone based,  silane/siloxane, penetrating sealer“, but it has been found that such products only lasted 3 to 7 years (depending upon the manufacturer and the skill of application).  Many times, the sealing contractor has not been properly trained in how to apply the sealer, and the condition of many “sealed” buildings attests to this fact.  Silicone silane/siloxane sealers MUST be applied in a flood coat, completely covering the block and allowed to be soaked into the block.  The current “best practices” sealing solution is a polyurethane or elastomeric based “plugger” type paint, installed by licensed, insured, trained and qualified masonry contractors.  This product will completely seal both the block and any small cracks in the mortar joints rather than just retard absorption.  But, this will NOT solve the totality of the problem without completing the next step.

Drying out the retained moisture - When a split faced block wall has been exposed to moisture for a long time, it tends to retain (or “sequester”) the water deep in the block.  Think of a wide sponge.  If you spray it with water it will absorb.  When the sponge’s capacity to absorb the water is exceeded (in building science, this is called the “hygric buffer barrier”) water will start being “leaked” out the other side.  But, the water being leaked is NOT the same water that is being sprayed on the other side.  There is always going to be some water, “in the pipeline”, so to speak.  Split faced block can absorb its own weight in water, and this retained water has to be removed.

Once the exterior walls and the coping stones have been sealed, no more water will enter the wall.  BUT, there is still a great deal of water that is already in the wall, and will not be dried out because the exterior has been sealed against water getting in, and water getting out.

To fully solve the problem, the water that has already been absorbed in the masonry has to be removed.  This can only be done by greatly lowering the humidity levels inside the house, which will draw the water out of the masonry  through the insulation and drywall.  Remember, in a typical three unit, duplex down, condominium building with split faced block on the sides and rear, there is approximately 2,500 GALLONS of water that is still in the block.

This process requires time (1 to 3 weeks, depending upon the conditions) and multiple, industrial capacity de-humidifiers running full tilt, 24/7 under closed building protocols.  This requires that the doors and windows in the house or building be kept closed (except for normal entering and exiting).  Many times, we have seen home and condominium owners who believe that once the cause of the water intrusion has been solved, they can just re-drywall and / or re-paint and everything will be fine.  They soon find the same water stains reappearing, sometimes in less than a week.  Solve the cause of the problem, then remove all the residual moisture before tending to the cosmetic details.  A car may have a really shiny and smooth paint job and cool chrome, but what really counts is what is under the hood.

Final steps - OK, we have solved the source of the water intrusion, and we have dried out the masonry walls.  Now we can “fix” the original problems that were the first complaint (i.e., water stains, puddles, mold growth, a “musty” smell, warped window frames, baseboards and window frames, etc).  Fine!

But how do we repair these problems, and do so following “best construction practices” (i.e., how the original builder should have done it in the first place!).

First, make sure that you have properly (and professionally) remediated any mold problems.  DO NOT USE BLEACH TO CLEAN MOLD!  It will only make it worse.  Mold on tile, grout and other non-porous surfaces can be killed with bleach, but for porous surfaces (i.e., drywall, wood) you must use special means.  A good, over the counter product is Mold Control which is available at most home improvement stores.  The best solution is to hire a professional, licensed, certified and insured mold remediation company.  There are plenty of guys out there who claim that they can clean mold, but you should always ask to see their credentials, licenses and insurance cover sheets and ask if they utilize licensed industrial hygienist in their remediation plans.  Also ask about their guarantee.  There is no state licensing or qualification requirements for mold remediation contractors.  Be sure that, when the work is done, you have a “clearance test” done by an independent mold testing inspector.

Install the proper type insulation for the type of construction, and have that insulation installed properly.  Insulation should provide an effective “building envelope”.  A building envelope serves as a barrier to heat (insulation), but also to air leakage (cold air infiltration, in the winter, and cold air loss, in the summer), water intrusion (liquid water) and vapor movement (humidity, which will condense into liquid water).  This type of barrier can only be achieved with a foam type insulation and the easiest way to have foam insulation is the use of spray foam.

The two types of modern spray foam are open and closed cell foam insulation, and they are meant to be used in two different areas of the house.  Closed cell foam is used to insulate exterior walls.  Closed cell foam has small bubbles and will stop all water, vapor and air movement, as well as heat movement.  Open cell foam insulation has larger bubbles and will allow a small amount of moisture movement through the foam.  Why would one want to allow any movement of moisture through insulation, you ask?  The answer is when you are insulating the ceiling and / or roof.  Human nature being what it is, most people do not replace their roof covering until water in already dripping down through the ceiling.  By that time, however, the roof itself has already been leaking for a year of so, it just hasn’t actually leaked through the interior ceiling (out of sight, out of mind).  If closed cell insulation is used to insulate the roof area, it will further retard roof leaks from dripping and will allow the water to be retained in the roof decking, causing rot and eventual roof structural collapse.  So roofs should be insulated with an open cell foam so that any leakage can be seen and the roof replaced before it becomes an even bigger problem.  Open cell foam also allows the building envelope to be extended, outward, from the ceiling of the top floor of the house to the underside of the roof decking, sealing any attic areas (the space between the ceiling and the roof) and better preventing heat loss (as well as stopping the natural “stack effect” of the house).

Finally, make sure that the interior drywall is properly installed and prepared.  Interior walls should be primed before painting.  All door and window spaces (the air gaps between the windows and doors and their openings in the exterior walls) should be properly sealed (low volume foam).  And, it is always a good idea to properly control the humidity levels in the house.  Inside humidity levels should be kept between 25 – 35%, year round.  Use a de-humidifier in the humid seasons (in Chicago, remember, Summer, Fall and Spring are ALL humid).  A good rule-of-thumb is this:  If there is condensation on the inside of the windows, it is too humid.  If you get shocks when you touch metal objects, during the winter, it is too dry.  Buy and use a good humidity meter in the house.  It will help to keep the house comfortable and save you money in air conditioning electrical costs.

Source – William Decker – Decker Home Services





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





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





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





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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