Living in Lincoln Park Blog

Ignore the Headlines…

Doug Fox — Tue, 27 May 2008 22:02:26 +0000

…says Dan Kadlec in Time Magazines February 25, 2008 issue.

Dan brings what the pundits and negative press would have you believe about the current real estate market down to $$$$ and sense. Common sense that is.

His argument is that although some ‘regional’ skepticism is certainly in order, overall finance costs will rise as the economy (and real estate market) recover, so trying to ‘time’ real estate might not pay off.

“Let’s say you are emotionally ready to be a homeowner. You have good credit, plan to stay put for five years and have been waiting for the perfect entry point. It’s time to get serious—–before an inevitable rise in interest rates wipes out your advantage”.

According to Jim Svinth, chief economist at mortgage firm Lending Tree, “the thing that will make home prices stop falling is the very same thing that will push mortgage rates higher”.

That should translate into the realization that any $$ advantage you might gain by real estate prices dropping will likely be offset by rising financing costs.

Read the complete article at http://www.time.com/time/magazine/article/0,9171,1713483,00.html Do the hard math. Then contact Doug @LincolnParkLiving.com to discuss the local real estate market, get the statistical facts on Chicago and get started on your home search today.

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Avoid the long lines for you city sticker!!

Doug Fox — Tue, 27 May 2008 21:45:57 +0000

In the May/June issue of the 43rd Ward Alderman Vi Daley News, staffers remind us that on Saturday, June 7th (9am-12:30pm) and Monday, June 23rd (10am-5pm) Chicago City Clerk Miquel del Valle’s staff will be at Alderman Daleys offices (735 W. Wrightwood) selling city stickers and residential permit parking stickers.

Easier still, if you have received your renewal notice from the City, go to www.ChiCityClerk.com. You will need the ‘application’ numbers on the notice and a major credit card in order to process your renewals. The entire process took me less than 5 minutes and my sticker and residential Zone permit should be here within 10 days.

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The road to a jumbo mortgage

Doug Fox — Fri, 02 May 2008 21:39:17 +0000

Fannie Mae & Freddie Mac were supposed make getting a conforming jumbo mortgage easier by raising the dollar limit to $625,000 from $417,000 in the more expensive markets. Unfortunately, for some reason, Chicago didn’t make that cut! What they’re finding in those markets that did make that cut, the jumbo rates have increased to a point that it seems to offset the benefit of the higher loan amount and the lender requirements have gotten to a point that it is getting even more difficult to get that loan. So, is it relief or grief!

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Recession Mongering - are we creating it?

Doug Fox — Sat, 29 Mar 2008 13:00:56 +0000

I’ve been talking about this on & off over the past several months - the media’s fascination with bad news and making it sound like the bottom has fallen out of the housing market, and now the ecomomy in general. No doubt there is a lot of anxiety and uncertainity about the economy, the hjousing market, unemployment, etc, etc…and some parts of the country have been hard hit in multiple sectors. As quoted in the linked article,

“We’re over-reacting to the recession word,” Dow Chemical Chairman and CEO Andrew Liveris told CNBC. “Lots of people get together and talk to each other and people believe the psychology.”

“It feeds on itself,” says Jim Awad, chairman of JW Stewart Asset Management. “You can’t go home every night and hear this and then go out and hire someone or buy a car.”

“The economy is still sorting itself through,” Liveris told CNBC. “I wouldn’t do the ‘Chicken Little’ thing.”

As I discuss with my real estate clients, we might be bordering on some challenging times, but I also think there are some great signs for a turnaround, or at least a stabilization. Interest rates are low, housing prices in Chicago are stable to decreasing and there are a lot of people looking to buy a home.

Even the federal government is involved in trying to provide some help and relief. The Hope Now proposal is a work in progress that might help. Here’s how it would work:Under this proposal, the government would allocate as much as $20 billion up front. It would use those funds to buy up mortgages from investors in a reverse-auction process, at prices below the face value of the loans. In a reverse auction, sellers compete against one another, slashing prices until a buyer - in this case the government - says yes to a deal. Toread the full story, click here

On this front, I’m curious, what do you think about the subprime debacle. Post your comments whether you’re for or against federal intervention and to what extent.

I look forward to seeing the responses…

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Privatizing profits…what a concept!

Doug Fox — Fri, 21 Mar 2008 22:14:17 +0000

I, along with I’m sure many of you, am very frustrated with the current economy and lending issues. In Chicago, real estate taxes have gone up to keep the city building & growing. The sales tax was increased, again to keep the city building and growing. The city transfer tax on the puschase of real estate was increased to fund the CTA pensions, who is paying this last increase is yet to be determined. How far can a dollar stretch?

Now, with the failing of Bear Stearns (which has been wrestling with this problem for some time), we as a society are bailing them out. Are they failing due to greed?, bad judgement?, bad timing?, or poor management? I’m sure their failure would have a substantial domino affect on many other companies in many industries, but isn’t that the risk/reward of free enterprise? It seems that financial institutions are able to do business in a no risk envirnoment!

The Fed is trying to help by cutting the rates, but so far it has helped the banks make investment purchases to help shore up their bottm line - important in the scheme of things. Eventually, I suppose, those lower interest rates will trickle over to the consumer that is on the verge of a short sale or foreclosure on their home.

I am hopeful that our government will come up with some plans that will actually help those individual homeowners in their time of need. There are real estate investors and second home owners that have found that their decisions may not have been so sound. As difficult as it may be, I hope the consumer bailout will be able to weed out the investor/second home owner and focus on those whose primary dwelling is at risk.

I suppose my hopes are a little too idealistic, but isn’t that where it starts…?

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Proposed Retail tax increase

Doug Fox — Tue, 11 Mar 2008 23:54:38 +0000

I thought this was already a done deal, but maybe this will help. It will take effect in November. Call the number below and voice your opinion…are you for or against the proposed new retail tax hike. Whether you live here or enjoy visiting, this will have an impact on your enjoyment of the city, but it will affect the retailers as well.

CALL 1-312 -603-6400. press1, then 2, then 2. It only took about 15 SECONDS to punch in my vote. Who wants to pay 10.25% SALES TAX? The county is planning the increase for November. This will have a negative effect on the lives of consumers in Illinois and, obviously, on retail businesses as this will make ours the highest sales tax rate in the country. Please call- and forward this to your friends.

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Wrong Tax at the wrong time?

Doug Fox — Thu, 14 Feb 2008 21:15:53 +0000

The city is attempting to raise the transfer tax a buyer pays at the time of closing on a residential real estate purchase. Currently, the buyer pays $7.50/$1000 of the purchase price and now they want to raise it to $10.50/$1000. it’s said that it will go to fund the CTA pensions.

An excerpt in a press release from the Chiacgo Association of Realtors states “Taxpayers in the Chicago region have been under siege in recent months, with more than $800 million in new taxes coming out of their pockets. This impacts people and businesses alike, and adds a level of uncertainty to the economic competitiveness and jobs climate of our region,” added Chicagoland Chamber of Commerce President and CEO Jerry Roper. “These elected officials are making the unfortunate choice to push through tax increases when our national economy is struggling and our local economy needs a boost.”

Let me know your thoughts…Is it the wrong tax at the wrong time?

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Chicago real estate market snap shot

Doug Fox — Wed, 12 Dec 2007 15:46:08 +0000

We’ve all read and heard about how bad the real estate market is. some parts of the country are getting hit very hard. But the Chicago market, “While the national median price of a home sold in October was 5.1% lower than a year ago, Chicago-area homes experienced a 3.1% increase, to $250,000. Half of the Chicago-area homes sold in October were below $250,000 and half were above that amount. The median price last October was $242,500. The median home price throughout the state fell 1.5% to $195,000 from last October. Average sale prices for both the Chicago area and the state were up. The Chicago average rose 9% to $328,057 from last year and the state average rose 4.5% to $259,031 from last year.” Not bad amongst all the gloom & doom!

Personally, I find it to be not only a great time to be a buyer, but a seller as well. Interest rates dropped last week and there is a fair amount of inventory to choose from. Plus, sellers trying to sell their home this time of the year have a tendency to be more realistic and motivated then perhaps other times of the year.

From the sellers’ perspective, pricing their home correctly is critical. There are a lot of serious buyers looking for a fair deal on their new home and a correctly priced home increases the chances of find one, or more of them.

From either side of the equation, it’s a managing of expectations. Fair minded buyers and sellers tend to find one another and put together deals that work for everyone.

If you’re curious as to how Lincoln Park or any other Chicago neighborhood is fairing in this current real estate market, jus shoot me an email and I will be happy to provide you with a market snapshot.

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Lincoln Park Zoo lights

Doug Fox — Tue, 04 Dec 2007 21:04:13 +0000

If you’re in the neighborhood any evening during the holiday season, you have to check out the lights at the Lincoln Park Zoo. I went during Thanksgiving & had a wonderful time. They’re open from 5:00 to 9:00pm everyday thru 1 Jan but not on 24 & 25 Dec. While you’re there, consider becoming a member and help support a great FREE zoo.

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Run, play, party

Doug Fox — Wed, 11 Jul 2007 13:27:07 +0000

Looking for some fun things to do this weekend? Here’s a variety of fun things to check out…

Niketown Bastille Day 5K Run, Walk & Block Party

July 12, 2007
Jackson & Aberdeen
Start Time: 7:30pm

Rock Around the Block, 14th

July 14-15, 2007
3400-3600 N. Lincoln Ave. @ Addison
12-10pm

Lincoln Square Chamber Sidewalk Sale

July 12-15, 2007
4600–4700 N. Lincoln Ave.
July 12–14: 10am-7pm
July 15: 11am–5pm

Pitchfork Music Festival

July 13-15, 2007
Union Park
1501 W. Randolph
July 13: 5-10pm
July 14 & 15: 12-10pm

Dearborn Garden Walk & Heritage Festival

July 15, 2007
Dearborn & Goethe Streets
12-5pm

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