Check out this Video and article from Crain’s Chicago Business on what 2010 looks like for new construction in the region.

We are Back in 2003.
The typical national home price is back at 2003!
Ok, breathe. We are all younger now.
No gray hairs here.

The bottom likely is here now or was just here and we’ve levelled out.

Evidence of a national truth that property values may be leveling off- Standard and Poors company’s national index, which is produced only once a quarter and covers all nine U.S. census divisions, showed a seasonally-adjusted gain of 0.3 percent between the third and fourth quarters of last year. This is a considerable improvement from the fall that pushed home values 32 percent below their 2006 peak!
According to the S&P/Case-Shiller U.S. National Home Price Index released Tuesday, residential property values were down 2.5 percent in the fourth quarter of 2009 compared to one year earlier-significant improvement over the annual variances reported in the first (-19.0 percent), second (-14.7 percent), and third (-8.7 percent) quarters of the year, and shows a definite pattern of diminishing declines.
In December, S&P’s closely-watched 10-city and 20-city composites recorded annual declines of 2.4 percent and 3.1 percent, respectively. These two indices, which are
reported at a monthly frequency, have seen improvements in their annual rates of return every month since the beginning of 2009. Following suit with the two composites, S&P said all 20 metro areas saw improvement in their annual returns …
As of the fourth quarter of 2009, S&P said average home prices across the United States are at similar levels to what they were in the summer of 2003.
Looking at the monthly statistics, 15 of the 20 markets tracked by the index showed a decline from November to December, with Chicago posting the sharpest drop of 1.6 percent. Some selections taken from NYT and DS News.

Check out this video from Realtor®TV talking about Eco-Friendly Kitchen Design. Whether you are building a + House ™ or you want to update your current house, there are many ways you can be “Eco-Friendly”. Being able to customize and upgrade your Kitchen on a + House allows you to maximize your energy use. From Energy Star appliances to low flow plumbing fixtures, there are plenty of options to put less of a burden on mother nature and put money back in your pocket. Give us a call today to find out how “Eco-Friendly” your kitchen could be in a + House 800-603-5251 Ext. 248.

+ House (Plus House) is marketed and sold by Plus House, Inc.

Here’s some good news on the housing front.  It looks like new foreclosures and people falling behind on loans could be slowing.   It’s going to take a while to sort through all the current inventory of foreclosed and short sale properties, but there is light at the end of the tunnel.  Every market it local, but as the foreclosure rate drops in different areas we may start to see stabilization and possibly some appreciation.  Now is a great time to get out and start looking at the deals that are on the market.  Don’t wait until you’ve missed the bottom of the barrel pricing that is here now, cause it may not last that much longer.  Let us keep an eye on the market for you – we can set you up with a search that pulls properties daily as they come on the market and when status change on properties.  Email me at Phil@Teambrealty.com or you can call me at 312-330-3730 and I can get your home search started. Phil Buoscio, Broker

Here’s the article from MSNBC going into more deail….

Fewer people falling behind on home loans

Housing recovery ‘going to be a very long, gradual process,’ analyst says

Source:  www.MSNBC.com

WASHINGTON – The end of the foreclosure crisis is finally in sight. For the first time in almost three years, the number of homeowners falling behind on their loans is declining.

The drop means the number of people losing their homes will start to fall. But some pain from the crisis is sure to persist. Because millions of people are already in foreclosure, deeply discounted houses will put pressure on home prices for years.

“Housing is on a path to recovery,” said Mike Larson, a real estate analyst with Weiss Research. “It’s going to be a very long, gradual process.”

In high-foreclosure cities like Las Vegas, Phoenix and Miami, homes have lost roughly half their values from their peaks. But a report Friday from the Mortgage Bankers Association showed Nevada, Arizona and Florida had some of the biggest declines in new delinquencies.

The figures probably mark “the beginning of the end” of the crisis, said Jay Brinkmann, the trade group’s chief economist.

However, more than 15 percent of homeowners with a mortgage have missed at least one payment or are in foreclosure, a record. Worse, nearly half of all delinquent borrowers were at least three months behind on their payments, up from a typical level of less than 20 percent.

“The bad news is that we still have a big problem,” Brinkmann said. “The good news is it looks like it may not get much bigger.”

That’s because the percentage of borrowers who missed just one payment on their home loans fell to 3.6 percent in the October-to-December quarter from 3.8 percent in the third quarter, according to the Mortgage Bankers Association. That decline was even more surprising because delinquencies usually rise at that time of year due to higher heating bills and holiday spending.

In another encouraging sign, the number of borrowers who had missed at least one payment but were not yet in foreclosure also fell for the first time since the beginning of 2007.

Banks are delaying the foreclosure process, traditionally between four and six months, as they evaluate borrowers for help under the Obama administration’s $75 billion mortgage-relief effort. It lowers borrowers payments to as low as 2 percent for five years and extends loan terms to as long as 40 years.

But experts warn that hundreds of thousands of borrowers will not be eligible or will not complete the process. So far, only 116,300 borrowers out of 1 million who enrolled have had the terms of their mortgages changed permanently.

Despite the government’s efforts, there may be 6 million foreclosed homes that are put on the market over the next three years, according to Barclays Capital.

Timing is key. If banks unload them suddenly, “it will be much more detrimental to the housing recovery than if it’s a slow, gradual bleed,” said Michelle Meyer, a Barclays economist.

On Friday, Obama announced that housing agencies in the five hardest-hit states will receive $1.5 billion to help spur local solutions. Those five are Arizona, California, Florida, Michigan and Nevada.

“Government alone can’t solve this problem,” Obama said. “But government can make a difference.”

Signs of a Recovery? We’re definitely seeing more activity in showings for our listings and buyers seeking our assistance in finding them a property. Possibly the most hopeful news is that numbers rose in the three major categories of manufacturing, mining and energy signifying a possible recovery for the economy which will be the best boost for real estate values. ~Phil

From The Huffington Post

http://www.huffingtonpost.com/2010/02/17/january-housing-construct_n_465524.html

WASHINGTON (MARTIN CRUTSINGER– AP) — Housing construction posted a better-than-expected increase in January which pushed activity to the highest level in six months. The solid gain raised hopes that the construction industry is beginning to mount a sustained rebound from its worst slump in decades.

The Commerce Department said Wednesday that construction of new homes and apartments rose 2.8 percent last month to a seasonally adjusted annual rate of 591,000 units. That was better than the 580,000 annual pace that economists were forecasting.

Applications for building permits, considered a good barometer of future activity, fell 4.9 percent to a rate of 621,000, but that was after two months of large increases.

In another sign of strength, Wednesday’s report revised up activity in December to show builders were starting construction at an annual pace of 575,000 units during that month, much stronger than the 557,000 originally reported. Even with the upward revision, activity fell a slight 0.7 percent in December, a dip that was blamed on severe weather in many parts of the country that depressed construction activity.

Economists are hoping that housing is beginning to recover and a rebound in this area will help support the economy as it struggles to mount a sustained recovery from the deepest recession since the 1930s.

In a separate report suggesting strength, the Federal Reserve said industrial production rose 0.9 percent in January, the seventh consecutive monthly increase.

January’s numbers rose in all three major categories: manufacturing, mining and energy utilities. That is the first such show of strength since August 2009.

Here’s a video from Crains Chicago about the outlook for the 2010 Economic outlook for Chicago.

Source:  Crains Chicago Business

Just out this week and seeing crazy great deals. Prices are back to 2002 or earlier now. Like a time machine reversed it all. Buyers–it’s time to get going and get in action. Call or email us for a website search to “lock on” the area of your choice to get you armed and ready and ready to get on your first appointment.

What a great time to buy!  The tax credit for first time or repeat buyers is primed and waiting for you. Prices are down. Rates are hovering the low 5% range.  FHA loans are still a great option… they are a 3.5%  loan  (soon to go up a few percent).   Many of you likley have questions about FHA. There are quick video’s here summarizing the benefits of FHA and the most frequently asked questions.

Learn about FHA. If your wondering if there is a lot of red tape–you’ll see from the video it is not .   The conventional market has moved away from low down payment products but the FHA down payment is 3.5% (likely to go up to about 5% any day) .  video

.

Here is a quick summary of the benefits of borrowing fha– the benefits  are huge.

Check out this video from the National Association of Realtors.  It goes through what an energy audit is and how it can help you save money on your utilities.

If you would like to learn more on how to save on your utility bills or make your home more energy efficient please give our office a cal at 312-330-3730.

I met Shawn from a sign call in September of 2009. He called on a condo. Sean came to the office and we hit it off. I used to be a teacher and he is now a hardworking teacher. He is looking to build equity and I understood how to help him–and I passionately wanted him to get a great deal and be secure. Every teach I help stay in the city–improves hundreds of kids lives I figure and Sean is a gift to CPS. He is a very bright guy. As I interviewed him as a buyer that first day he was thinking of buying a condo. He liked East Pilsen but was interested in what he could secure in the West loop for under 200,000.

As a teacher he has his grant coming from the city, on top of the tax break from being a first time buyer. Once we talked about his larger goals–beyond 5 years–the issues of having outdoor space, and room for a family came up. This inital interview proved to shift my perspective of him — and I saw that I could challenge him. I always challenge my clients–that’s my job. To ask probing questions. “Why a condo?”  “Why not a house?” Why a two flat, why not a 4 unit?” I figure you have to get to someones “essence” by being a mirror and just asking the questions throughout the process. Let them hear themselves as they visit properties and throw options at them and test them–they find their way to their path.

What I heard from Sean on a deeper level was. He really wanted to settle in–plant roots. And he was frugal. Smartly so. He asked the right questions. He noticed things like the taxes were $400 high on one listing than another and wanted to know why. He wanted to know why things like why a 5th floor unit was $20,000 more than a 3rd floor unit–and questioned the logic of it.

Sean already lived in an apartment in Pilsen and he liked East Pilsen. We didn’t narrow out condos… but as we looked at the first 10 or so in Pilsen and then the South loop and Kenwood I ran the monthly payments for him, against two units in East Pilsen and showed him how not paying assessments and having a renter covering half his mortgage put him in a property of his own, with a yard, garage, and a tennant, with more square footage for the same payment as a two bed condo. I showed him a few houses and he liked what $200,000 could buy in a house in Pilsen.

Then we opened it up to two units and we quickly found a 2 flat on Morgan, very near Simone’s (the new hot spot in Pilsen and 18th) that was under $180,000. It needed work. He loved the block, and… ever testing him… I threw out that he could do a rehab loan. Not sure what he would say….

Now Sean, not having rehab experience, was very open to doing rehab to my surprise. He amazed me with his openness to learn about it. I have many years of rehab experience so I talked him through the process. He had an unusual courage to try something new. He is very unique for  buyer in this way–as a buyer you have plenty of other issues to worrry about let alone taking on a construction loan and trusting a General Contractor.

So here you have a first time buyer, who started with a condo search… going to a multi unit where he would pay less… and now taking on a rehab project. But….it was all driven by the end goal. He is getting a home he can stay in for ten to twenty years in the n’hood of his choice at a great price with a low monthly payment that gives him freedom. The rehab can use non-toxic paints, green aspects and it’s all customized to what he wants in the property.

Sean was a great student of the process. He jumpred right in, did his research, interviewed many contractors, etc. I was very impressed with him and asked him if I could please share his story… and ask him some questions to benefit other buyers we work with.

Graciously… he said yes. And, he supplied his email below… so you can email him questions as you process of buying heats up.

So here you go.. and interview with Sean Lawler. A courageous, pioneer and new property owner who has earned a Masters degree in Buying a property in the last 4 months.

INTERVIEW
Phil :  This is your first purchase and you decided to do a remodel loan “203k” — isn’t it alot to jump into being a homeowner and doing construction all in one fell swoop?

Sean:  Since it’s all new it seems like a lot to jump into at the beginning.  But I found that the government has the 203k loan set up so that the borrower won’t be taken advantage of.  In fact, it’s set up so that the borrower can’t make bad financial decisions.  You can’t get the loan if the bank finds out that the work you plan on doing does not meet market value.

The jargon regarding financing, mortgages and home construction work was all new to me.  I didn’t really need to know much about what the jargon meant, I just needed to know how to compare prices as I shopped for different mortgage brokers and general contractors.  In fact, I didn’t really need to shop around for different general contractors, I just needed to find a general contractor that would agree to do the work at the price determined by me and my 203k loan consultant.  This consultant is on your side, itemizing all the work you want done on the property and placing a market value price on each item.  He’s got your back.

I suppose the biggest risk I took was deciding which realtor I wanted to hire.  Phil Buoscio impressed me not just because of his knowledge of the industry and the neighborhoods and the market, but because he challenged my thinking about what to buy based on what I could really afford.  This is a much better business method than just agreeing to do whatever the client/buyer/me thinks is best.

Phil(as we get to the next question let it be know I didn’t ask to be complimented like that). Question: In starting to search you were thinking about buying a condo, and then you decided after weighing options to buy a 2 flat that you could remodel. What items did you weigh in making this decision?

Sean:  As I became more familiar with what’s involved in owning a home instead of a condo, I realized that owning a home wouldn’t be a time-consuming headache.  So much is straight-forward.  It didn’t take long for me to realize that owning a 2-flat and renting out a unit makes financial sense.  Getting that additional income from rent is a smart move.

I was also drawn to how by owning a home you become more connected to the neighborhood.  You have more of a stake in community programs, environmental issues, political development, etc.  It’s about time for me to settle in a neighborhood and be involved in this way: to develop relationships and help the community grow.

Phil: How does the 203k loan process work – once you find a property and get it under contract?

Sean:  Well, first your bank (mortgage broker) has you hire a 203k loan consultant.  This consultant will visit your property with you and help you decided what work you want done, what work will be mandatory to obtain the 203k loan, and what work you can afford.  He will draft a Specifications of Repairs document that itemizes all this work.

Then you’re ready to shop for a general contractor (a GC).  This GC will be hired by you to get all the work specified, done.  The GC hires subcontractors to do the labor.  She/He will hire a plumber to do the plumbing, a roofer to do the roofing, etc.  But that’s all his responsibility.  You just want to feel comfortable that the GC will make sure the job is done well.

In the meantime, you will attend a First Time Homebuyers training session conducted by the Rogers Park Community Center.  This is a requirement for the loan.  It was also quite informative.  They cover all your bases, answer all your questions and make sure you have all the resources you need in making your home safe & sound and the people living in it happy.

That’s really about it.  You want to be sure to spend a good amount of time with your 203k loan consultant determining what work you want done on the place; what kind of wood floor you want, what bathroom fixtures you want, if you want to demolish and rebuild a garage, etc.  He/She will help you figure out what is best for you based on your budget.  Then your GC has to just match your Specifications of Repairs doc.  Many people have horror stories about GCs.  That they end up doing crappy work, or jack up the price tag after they start working on the place.  Well, you’re safeguarded against suck shady practices with the 203k loan.

Good luck!
Sean Lawler.. (open to answering questions by email)
HYPERLINK “mailto:seanmichaellawler@gmail.com” seanmichaellawler@gmail.com
12/13/09