Property Taxes: Illinois is near the top

We all know our property taxes are high, but did you know Illinois is in the top 10 for the entire US?  Another reason why you want to appeal your assessment and taxes each and every year.  Here is the breakdown:

States with the highest taxes:

1. New Jersey (1.89 percent of property value)
2. New Hampshire (1.86 percent)
3. Texas (1.81 percent)
4. (tie) Wisconsin (1.76 percent)
4. (tie) Nebraska (1.76 percent)
6. Illinois (1.73 percent)
7. Connecticut (1.63 percent)
8. Michigan (1.62 percent)
9. Vermont (1.59 percent)
10. North Dakota (1.42 percent)

States with the lowest taxes:

1. Louisiana (0.18 percent)
2. Hawaii (0.26 percent)
3. Alabama (0.33 percent)
4. Delaware (0.43 percent)
5. West Virginia (0.49 percent)
6. South Carolina (0.50 percent)
7. (tie) Arkansas (0.52 percent)
7. (tie) Mississippi (0.52 percent)
9. New Mexico (0.55 percent)
10. Wyoming (0.58 percent)

Source: 2009 U.S. Census Data and Tax Foundation calculations

Homebuyer Tax Credit Extended???

There are a lot of rumors circulating about the recent Senate approval of the extension of the home buyer’s tax credit.  I know a lot of you are curious, so I wanted to pass along the facts:

• The extension is for the closing deadline only, originally June 30, 2010, but proposed to extend until September 30, 2010.  You still needed to be under contract by April 30^th to qualify for the $8,000 tax credit (1^st time buyers) or the $6,500 tax credit (move-up buyers).
• The Senate approved the measure, but the House still needs to sign-off on it
• Currently, there is no discussion of extending the qualification deadline or restarting the credit option like they did in November 2009. 
• For more information on these credits, checkout http://www.federalhousingtaxcredit.com
• Also, here is a good article about the closing deadline extension: http://www.bankrate.com/financing/mortgages/congress-might-extend-tax-credit-closing-deadline

 As always, please don’t hesitate to contact me with any questions.   Have a great weekend!

Mortgage Interest Rates Drop Again

The fears of the potential bankruptcy of “PIIGS” (Portugal, Ireland, Italy, Greece and Spain), sent traders scrambling from risky stocks into the US treasuries market on Friday.  Thus, whenever this happens, mortgage intest rates always drop.  Checkout this great article from CBS Moneywatch: http://moneywatch.bnet.com/saving-money/blog/home-equity/mortgage-interest-rates-could-hit-rock-bottom-today/2135/.  With rates close to a 1-year low, it’s a great time to refinance or jump into homeownership/property investing.

Do We Have Control Over The Real Estate Market?

The past 18 months have taught us many things, not the least of which is that we don’t have control over a number of variables that affect the real estate market. However, we do have control over the actions we take to prepare for and react to these variables. During the next 60 to 90 days, some significant housing-related changes are imminent. We can’t control those changes, but to a certain degree we can control how they affect us.

Can’t Control: Expiration of Federal Housing Tax Credit
Can Control: Purchase Date / Closing Date
While we can’t control how the expiration of the Federal Housing Tax Credit will affect the real estate market, it is an absolute certainty that qualified first-time buyers will receive up to $8,000 and qualified repeat buyers will receive up to $6,500 if they enter into a purchase contract by April 30 and close by June 30. With less than 90 days until the expiration of the Federal Housing Tax Credit, buyers need to be in the market now.

Can’t Control: Mortgage Interest Rates
Can Control: Locking in Today’s Rates
No one knows what will happen to mortgage interest rates when the Fed ends its $1.25 trillion purchase of mortgage backed securities in a few weeks. But one thing is for sure. Home buyers who lock in their interest rate today will benefit from some of the best mortgage financing conditions in history.

Can’t Control: Selling Price
Can Control: Asking Price
If you’re a seller, the price you paid for your home or the amount you owe on your mortgage has no bearing on your home’s ultimate selling price. What does determine that price is the market. And today sellers must show consideration for the market with correct pricing right out of the gate. The chart below shows just how important Original List Price (OLP) is to selling your home for the highest possible price in the shortest amount of time.

2009 Sales Data

Homes with no price changes		Homes with at least one price change
Average selling price as a percentage of OLP	Average days on market	Average selling price as a percentage of OLP	Average Days on market
96%	116	82%	240

Source: Agent Metrics, MRED LLC data, 2009, Selling Price to Original Listing Price, City of Chicago.

One more thing you can control is your choice of real estate agent.  Please contact me if you or anyone you know needs help navigating today’s real estate market.

Q4 Home Sales: Up 13.9%!!!

Fourth quarter home sales were released recently and across the board averaged 13.9%.  48 out of 50 states plus the District of Columbia had an increase and 32 states had double-digit increases.  Q4 home sales were up an astounding 27.2% vs. the fourth quarter in 2008.  These numbers were largely due to the first-time home buyer tax credit, but nonetheless, this is a great boost for the real estate market. 

While there is still a ton of inventory on the market, sales are happening and the market is slowly improving.  We are not seeing much appreciation, but just knowing that the inventory is being bought-up is great news.  Keep it up home buyers!

2010 Goals…read more, gain knowledge

As we jump into the 2nd month of 2010, we look back at a couple of the goals that we set for the year.  Most people I know want to read more, whether it is online (blogs, enewspapers, etc), newspapers, magazines or a good novel.  In order to help you grow in your real estate knowledge, checkout the chitownpropertygroup’s latest newsletter.  Great info on the current real estate market, some good restaurants around town and learn more about Ukrainian Village.

Super Bowl: End of Football, But Start of Home Sales

The Super Bowl is coming up this weekend.  Who are you pulling for: Colts or Saints?  Both are great teams, so it should be a great game.  Many are depressed that the football season is ending, but did you know that the Super Bowl is really the “jump-start” of home sales for the new year?  Sure, January is a great time to start looking for a new home or to list your home for sale, but statistically, the week or so after the Super Bowl is when many people really jump into the real estate marketplace. 

When starting your home search or getting ready to sell your home, finding the right real estate agent is crucial.  Here’s a great article in the Chicago Tribune with a list of questions to ask your real estate agent: Big Game Kicks Off Buying Season

Tax Time…Don’t Forget All Those Deductions

Many of us are vigourously working to get our tax returns submitted for 2009 so that we can 1) have it off our plates and 2) possibly get a refund.  In order to increase your refund, you want to make sure you are counting all the potential tax deductions over the past year, such as: mortgage interest, charitable contributions, business expenses, etc.  If you purchased a new home in 2009, you also could be eligible for the homebuyer tax credit.  Be sure to follow-up with your accountant and double-check that he/she is including every deduction possible. 

Also, for a great article on some of the recent changes in federal tax laws that might affect you, checkout this Tribune article: Tax Changes Can Boost Refund.

@properties is #1

 

 

2009 was a challenging year for businesses across the globe. Some companies took it sitting down. Not @properties. We invested in new marketing and technology, opened new offices, and expanded programs to serve you better. The result: Our independent locally-owned company is stronger today than ever before. In fact, @properties far and away leads the Chicago market in more key categories than any other real estate company. And that means more resources, better service and ultimately better results for you.

@properties is clearly #1.

2009 Market Performance

#1 in Market Share (City): #3 in Market Share (Northern Illinois Region): #1 Increase in Market Share (City): #1 Increase in Market Share (Northern Illinois Region): #2 Increase in Market Share (North Shore): #1 New Construction Market Share (City): #1 Buyer’s Representative (City): #1 Seller’s Representative (City): #1 Average Market Time (Northern Illinois Region): #1 Selling Price to Original Listing Price (Northern Illinois Region):	12.4% 4.4% 28.0% 18.8% 68.6% 16.5% 12.0% 12.9% 147 Days 93.8%
For more information on @properties’ services or your local market area, please contact me. I’m here to help.
Source: MRED, LLC, 1/1/09-12/31/09. Based on top 10 companies per category. Market share figures are based on sales volume.

Chicago Spire…Might It Happen?

The Chicago Spire - Will it happen?

According to the spokesman for developer Garrett Kelleher of the Chicago Spire,  he has secured some mezzanine and bridge loans in order to proceed with development, marketing and building of the 150 story Chicago lakefront tower located at 400 North Lakeshore Drive.  These loans would “kick-in” as soon as Kelleher can come up with $170 million to pay off the current outstanding loans and liens. 

As for the $170 million, a group of union pension funds are in talks to loan these funds to the developer.  They are eager to employ over 1,000 union workers and know this could be a major shot-in-the-arm for the local unions here in Chicago.  It is not unheard of for union pension funds to produce financing for construction projects.  The AFL-CIO fund has invested over $1 billion in Chicago, which is more than any other city in the US.

Many people are skeptical whether or not the Spire will become a reality and sell out, if built.  But some are positive, believeing that the four-year construction process will allow the economy and the housing inventory to level off, so sales will not be as difficult.  Prices start at $750,000, while most units range from $2 million to $15 million.

The Spire will be the tallest building in North America at 2,000 feet tall.  Other tall North American buildings include the Willis Tower, formerly Sears Tower, resting at 1,451 ft and the CN Tower in Toronto, resting at 1,815 ft.