Interest Rates Decline

I recently read an article I found on MortgageNewsDaily.com. The article talked about the steady decline in interest rates that we have been seeing. I included a couple of passages from the article that I think are note worthy: “The 30-year fixed-rate mortgage (FRM) reached its third lowest level of the year at 6.14 percent with an average of 0.4 in fees and points. With 2006 drawing to an end, only two weeks, those ending January 19 and January 26, recorded lower rates at 6.10 and 6.12 respectively. Last week's level was 4 basis points below that for the week ended November 22. With the exception of a single small one-week up tick in November, rates have steadily declined since the week ended October 26. Frank Nothaft, Freddie Mac vice president and chief economist stated that "Mortgage rates drifted lower this week, bringing long-term rates to levels below those of this time last year. Mortgage applications for home purchase in November have remained healthy, due largely because of the drop in mortgage rates and a softening in home prices in some areas."
The Mortgage Bankers Association in its Weekly Mortgage Applications Survey for the week ending December 1 was in rare unanimity with Freddie Mac in finding interest rates retreating in all categories.
The survey results show that the average contract interest rate for 30-year fixed-rate mortgages decreased to 5.98 from 6.13 percent, with points, including the origination fee, decreasing to 0.91 from 0.97. This is the lowest level reported by MBA for the 30-year FRM since October 2005.”
This is a positive sign for the Real Estate market. The more the Interest Rates remain steady the more positive the Real Estate market looks. This year there have been a number of negative things said about the Real Estate market, that I believe has kept consumers out of the market. The more positive signs we see, the more consumers will return to the market place. With interest rates in a steady decline and property values balancing out, we should see a growing market in 2007.

Historic Uptown Theater

For all those familiar with the Uptown neighborhood here is an article found I found on Chicagoist.com website written by Shannon Saar . This is article focuses on the Historic Uptown Theater. Currently there are two major companies submitting bids to purchase the Uptown Theater. This could be a positive sign of good things to come for the Uptown neighborhood. Here is the article "Please, Boys, No Need to Fight Over Li'l OL' Me"

Personal Story of Real Estate Blogging

As a Realtor, I am always looking for ways to increase my market range. I have recently been turned onto the world of Blogs. I was not quite sure what a blog was when I first started so I decided to look it up. According to Merriam-Webster Blog is defined as follows:

Pronunciation: 'blog, 'blägFunction: nounEtymology: short for Weblog: a Web site that contains an online personal journal with reflections, comments, and often hyperlinks provided by the writer - blog·ger noun - blog·ging noun

This makes sense, and if I may, I would like to expand on this definition. A Blog may also follow a particular theme. In my case Real Estate is the theme, and more specifically Chicago Real Estate. Of course there are times in which I will write about other things (The Cubs signing Alfonso Soriano…die hard Cub fan “waiting for next year”) because in fact this is an online personal journal.

When beginning my Blog, I was set up with a template from Blogger.com, and away I went. I started out with a story, or as the correct term is I added a post. Then time passed and I added another post. Then some more time passed I added another. What I am trying to get at here is that blogging was much more difficult or shall I say intimidating then I had anticipated. The idea of thousands of people reading my weekly thoughts and opinions was intimidating. I mean who was I? Was I an expert on Chicago Real Estate? Not an expert, but very knowledgably. Also, how is my writing? I am no Pulitzer Prize winning author or for that matter even a published author. So how was I going to write about Chicago Real Estate on a regular basis? What I decided to do is to check out other Real Estate blogs. I know for a fact I am not the only one doing it so I thought it would be a good idea to see what others are writing about and how they are writing. Do you know what I found? I found posts that were very informative and insightful. I also found posts that were not informative and I also found posts that were just plain insane. (I have decided not to mention any of the posts I saw, but trust me they are out there.) Doing the research made me realize that everyone writing a blog does not have to be an expert or a great writer. Besides the definition of blog does not specify you being an expert or great writer. With my fear of being ridiculed out of the way, I was ready to really get going on my blog.

Then I found another problem…content. I knew I wanted to blog about Chicago Real Estate, but what does that mean. Does it mean me just blogging about my daily conversations with friends and colleagues? It could, but I knew I wanted more. I wanted people who read my blog for the first time to want to come back again. I knew that a daily journal of my thoughts and opinions would only carry me so far. I needed more to say about Real Estate. And that’s when it hit me. I am a Realtor, I can comment on the market, the value of a house or condo, the process of buying and selling a home, etc. But, I am not the only one involved in the Real Estate process. There are Mortgage Lenders, Attorneys, Home Inspectors, the Buyers and Sellers (just to name a few). I needed a way to incorporate view points from all these sources as well. So where can I find all this…on the internet. So I started searching the internet for stories, articles, what ever I could find that dealt with Real Estate. I found a lot of resources and now I was truly ready to go.

With my intimidation behind me and an expansive amount of content just a click away, I am ready to really get involved in the world of blogging. I hope all who come here find it informative and entertaining, and continue to return. Keep an eye on the changes, as the more I learn, the more I will incorporate into my blog.

Cubs sign Soriano...believe it.

Being a life long die-hard Cubs fan, I was shocked and surprised when I heard the news of the Cubs signing the #1 free agent on the market. Alfonso Soriano, who is only the third man in major league history to post a 40/40 season, was by far the #1 free agent on the market. His power numbers at the top of the batting order separates him from the rest of the field. He is a dynamic player that provides both speed and power. He shows great hustle on the field and is reportedly one of the hardest workers out there. He is known for being the first one to the ballpark and giving 100% at all times. Cub fans will surely appreciate his passion as well as his production.

This is one of the few times the Cubs have actually followed through on their word. We have heard a lot of talk in the past when there was glaring need to fill a position and the Cubs go out and find a middle of the road guy, in hopes of catching lighting in a bottle. This year, there was a need to add some more power to the line up. Soriano was the #1 free agent, and the Cubs did what they said they would. They went out and the guy they needed. They also sent a message to the fans, that they are willing to do what it takes to bring a winner to the North Side.

I do understand that we still need pitching, but the signing of Soriano is a great step to making the Cubs a contender for years to come.

Nationwide Real Estate Campaign

For the past couple of weeks I have been commenting on why I believe now is a good time to buy Real Estate. I have written several entries (see Buyers market means…BUY! And, Current Real Estate Market) to help inform readers about the current state of the market. Just recently the National Association of Realtors (NAR) has gone on a nationwide campaign to urge home buyers to buy now before the market changes. The NAR has taken out full page newspaper advertisements to urge home buyers who have been waiting to buy the home of their dreams to act now before the market changes.

This is the first-ever newspaper blitz taken by the NAR. The feature, headlined, “It’s a great time to buy or sell a home”, points out that interest rates have fallen seven months in a row and are near 40 year lows, inventories of existing homes are higher then they have been in decades and prices have stabilized. But, these conditions won’t last for long, as sales are likely to pick up, prices gain traction and conditions improve for sellers next year.

The advertisement will appear this weekend (Nov 11-12) in the Wall Street Journal, USA Today, and Sundays in the New York Times, Washington Post, Los Angeles Times and Chicago Tribune.

NAR president Thomas M. Stevens said the newspaper ads are the beginning of an NAR campaign to urge buyers and sellers to take advantage of the favorable market conditions. Two of the network television and radio ads directed at buyers and sellers will begin airing in the second week of January.

So remember if you are thinking about buying a home or condo consider these points:
- Interest rates are low
- A good inventory of homes is available
- Prices have stabilized and are starting to rise
- The future of the housing market and the economy are positive
- Housing is a great investment, with average home valuations increasing 88 percent in the last 10 years

Remodeling Your Kitchen

I was recently asked about Remodeling and cost associated with that. As a Realtor I am often asked about what types of remodeling can be done to make a condo or house more attractive. Most people usually want to remodel their kitchen, as well they should. I believe that the kitchen can be one of the main reasons between a buyer’s decision to purchase a place or not. (Now before I get into this further, I want to say a good coat of paint goes along way. Do not ever think that the little things don’t matter.) So getting back to the idea of the kitchen I wanted to pass this article along to my readers. I found this article in the Chicago Tribune, written by James and Morris Carey of the Associated Press. "Remodeling 'specials' may not be special at all." This article gives you the heads up on some things to look for and consider when you are thinking about a remodeling job. Also, it can give you an idea of the things to ask your contractor when discussing your remodeling job. As for cost, it all depends on what you want done. The most important thing is to be educated on what it takes to complete a remodeling job.

Lollapalooza Music Fest

As a fan of music, and sometime musician, I was excited to hear that Chicago will host Lollapalooza for 5 more years. I was disappointed this past year because I was not able to make any of the three day festivities. Now, with the music fest being here for the next 5 years I will be able to enjoy it for sure.

Here is an article by Noreen S. Ahmed-Ullah, staff reporter from the Chicago Tribune. Lollapalooza gets 5 more years here.

Chicago Visitors Tour

Imagine sitting in your favorite chair playing the guitar, watching the game and all of a sudden your wife tells you that her family or friend is coming in town. Not a big deal right. Then she tells you that the two of you are responsible for showing them around Chicago. Now you start to rack your brains on how you can show your guest this beautiful city. You know that there are tons of great things to do (check this site out if you find yourself in this situation) so you spend the rest of the night surfing the web planning out your guest weekend/week(s).

Since my wife is from Colombia, we get frequent visits from family and friends. We have become experts on showing people around this city, and giving them a feel of true Chicago. I wanted to share with you a great "first impression" drive that I have created and use all the time. As soon as our guest arrive they immediately want to start seeing the city. So I put them in the car and take them on about an hour drive that shows them a lot of what this city has to offer. Now this drive is not intended to show them everything, but gives them a good idea of what they can do while they are visiting our city.

We start out in Lincoln Square. I explain the history of the neighborhood and it's cultural roots. I point out a view of the coffee shops and pubs that we may frequent during their time with ups. From the cobblestone road of the square we merge onto Lincoln Ave. heading southeast. I point out the many restaurants, boutiques and bars, and a couple of our favorite places to go to. We follow Lincoln Ave. southeast until Addison. We then head east on Addison until we reach Clark St. Now we should all now what is at the corner of Clark and Addison. The most beautiful baseball field in the world Wrigley Field.

Depending on who our guest is, I will give them some history of Wrigley Field and the Cubs. I will drive them around Wrigley Field giving them the history of te neighborhood. I will point out the classic differences that make this place such a fixture in Chicago. I will point out the manual scoreboard, the rooftop bleachers, the newly remolded bleachers, the opening in the right field wall, Harry Carry's Statute.

We continue our tour heading southeast on Clark explaining to them that the area is driven by the massive amounts of Cubs fans. We stay on Clark until we reach Belmont Ave, turn left heading east. We are on our way to Lake Shore Drive(LSD).

Once on LSD heading south straight towards downtown. I point out Belmont harbour on the left and Lincoln Park on the right. Straight ahead of us is what I consider one of the best views of Chicago. You see theSears tower off in the distant, and the Hancock dead ahead. As you get closer the buildings seem to climb towards the sky, and are right on top of you. We stay on LSD so we can show our guest Navy Pier. We go past Grant Park and point out Buckingham Fountain. We go by all the museums and point out each one. We continue until we reach Soldier field. At 18th St. we turn around and head back north of LSD. Once we get to Jackson we turn left heading West. We go to Michigan Ave and turn right heading north again. I like to point out the Art Institute and take them down the magnificent mile. Then we are back on to LSD heading back to Lincoln Square.

This trip is quick and easy, and always gets our guest excited about the city. They have seen some many different shops and boutiques on Lincoln Ave, they have seen the museums and can decide which ones to visit. They have seen all the shopping on Michigan Ave. Also, they have seen some picture perfect views of this geat city. If you ever have guest in town, and want to show them as much as possible in a short amount of time. I highly suggest taking this tour. You and your guest will not be disappointed.

Current Real Estate Market

Reading through the Sunday Chicago Tribune Real Estate section. I came across an article by Kenneth R. Harney, Washington Post Writers Group. His article titled "Market 'rebalancing' gets caught in the spin cycle," is an article that supports what I believe is the true state of the Real Estate market. I blogged about this last week (see blog entry of 10/05/06). For months we have been hearing that the Real Estate market is busting, and that the interest rates are high. This is just not true. Interest rates have been falling and the market is not busting, but coming back down to normal. I think this is a great article and a very informative article on the Real Estate Market.

Buyers Market...Means BUY!

What does the term "Buyers Market" mean? This is a term that has been used alot when discussing Real Estate recently. The best way for me to describe it is to explain why the term is so prevalent right now. The media loves to talk about how the Real Estate market has burst it's bubble. Now, I am not familiar with other parts of the country, but I can say that the Chicago Real Estate Market, has not experienced a burst. Why do I say that the Chicago Real Estate Market has not experienced a burst, well if you live, work or visit this city you can see that there is still new Condo construction happening. Condos are still going on the market and selling. I will agree that there has been a slow down in the amount of time that it is taking to sell a Condo, but they are still selling.

Now what is the cause for the slow down? The media loves to point to the interest rates as the main reason why (just a side note, I don't have anything against the media. I just keep hearing the same thing over and over, but is not true). I do not claim to know the reason for the slow down, but I have an idea. Which, leads me to the definition of "Buyers Market". "Buyers Market" to me means that prospective buyers should buy. Sounds simple enough right. But, what we are finding is that prospective buyers are so influenced by all the hype about interest rates being so high, that they are staying away from buying. Prospective buyers have been conditioned to believe that the interest rates are the highest they have been in years and therefore Real Estate is a risky investment. Is this correct? Yes...but what the masses fail to tell you is that the interest rates have risen a grand total of... 1 point from the days of the housing boom (2003). (see for yourself. Mortgage Rates). If you look at height of the housing boom which was in 2003. The best prime rate (30 years) was 5.23 which was in June, 2003. Today the current prime rate is 6.3. One year ago (10/2005) the prime rate was 6.07, and a month later (11/2005) the prime rate was 6.33, which is higher then todays current prime rate. Ask anybody who bought a house in the 1980's what there interest rate was (can we say double digits). The whole start of the boom was not because of the prime rate, but because of the Adjustable Rate Mortgages (ARMs) that were being offered in 2003. You could get an ARM for as low as 4%. Of course the ARMs were only good for 1, 3 or 5 years, and then you would have to refinance.

Todays Real Estate Market is slow, but by no means has there been a bust.

Fall Housing Market

It's that time of year. The temperature begins to drop, the leaves start turning colors, and the Real Estate Housing market begins to take an upward swing. This is an exciting time to be involved in the Real Estate market. As a Realtor we say goodby to the dog days of summer, and usher in a whole new group of buyers and sellers. The summer market generally is a slower time for Realtors. Of course we are still completing transactions. But, with buyers and sellers taking summer vacations, enjoying the many festivities Chicago has to offer, the market tends to slow down a bit.

I anticipate a very busy fall market. With summer vacations over, festivals winding down many buyers and sellers shift their focus back to either buying or selling a home. We have just recently experienced a freeze in interest rates. For the first time in 18 sessions the Federal Reserve has not raised the interest rates (see my previous blog entry No Rate Hike...a Positive Signal). Also, the leasing market is coming to a close. Most leases end in September and October. So those who were once renting are now looking to buy. All this could make for a very busy, and productive, fall market.

No Rate Hike...A Positive Signal

Here is an article I saw from the National Association of Realtors (NAR). It talks about the Federal Reserve not raising the interest rates and the value it has on the housing economy. I thought it would be a good article to share with everyone. I hope you enjoy it as much as I did.

The decision this week by the Federal Reserve’s Federal Open Market Committee to not raise the federal funds rate for the 18th straight time indicates that the Federal Reserve recognizes the value of the housing economy to the national economy as a whole, the president of the NATIONAL ASSOCIATION OF REALTORS® says. “This move sends a very positive signal to the housing sector, which has been so robust over the past five years that it has sustained the economy while other sectors have lagged," says NAR President Thomas M. Stevens, senior vice president of NRT Inc. "Largely as a direct result of more than two years of interest rate hikes, the housing market today is fragile in some parts of the country. The Fed’s decision indicates that it realizes the vital role housing plays in the economy.” The decision by the Federal Open Market Committee leaves the banks’ prime lending rate, the benchmark for various consumer and business loans, at 8.25 percent. Before the Fed started raising rates in June 2004, the prime had been at 4 percent. Stevens says the Fed’s decision indicates it realizes the economy has slowed, especially the housing economy. “We can’t continue to raise rates without expecting the housing economy to suffer. That translates into higher costs for home buyers, slower sales and a lower level of economic activity in housing, which accounts for one-fourth to one-fifth of the gross domestic product,” he says.

Lincoln Square Project

Last night I attended a public meeting to discuss a new building project in the Lincoln Square neighborhood. Being a resident of this neighborhood and a Realtor, I was excited to see what the project was. The project being discussed was a 4 story building on the NE corner of Lawrence and California. The building will consist of 3 storefronts, 2 on Lawrence and 1 on California. The top three floors will consist of a total of 8 2 bedroom 2 bathroom condominiums (condos). 6 condos will face Lawrence Ave, and 2 will face California. The 6 condos on Lawrence will feature 1400 square feet of living space, balconies and 1 enclosed heated garage space. The 2 condos on California will feature 1200 square feet, recessed balconies and 1 enclosed heated garage space. As for the 3 storefronts, there was no determination as to what type of business was going to be there. It was discussed that the builder was looking to add a coffee shop type business, or small dinner.

The purpose of the meeting was to allow the residents of Lincoln Square an opportunity to see what the project consisted of. Also to allow them an opportunity to ask questions. The meeting was hosted by members of the Lincoln Square Neighborhood Association, a representative of Alderman Patrick O'Connors office along with the builder and architect.

Construction has not yet begun, but the builder believes he should be able to break ground sometime in October. He also anticipates around 9 months until completion.

As a resident of Lincoln Square I look forward to seeing this project complete. With new housing and new businesses coming into the area Lincoln Square will continue to grow and prosper.