Andrea Geller

As Chicago awaits the October 2, 2009 announcement of the decision of the International Olympic Committee, 2nd Ward Alderman Robert Fioretti addressed the Chicago Association of Realtors Government Affairs Committee on Friday. Alderman Fioretti spoke about the unique opportunity the 2016 Olympic games would present for the City of Chicago: 300,000 jobs expected to be created, more than $22 billion generated, and a boost to the City's transit infrastructure. The City Council voted last week on an ordinance that will provide transparency and openness for the entire process. The impact of the upcoming decision will dictate many factors going forward for the City including what will be done with the 37 acres of the former Michael Reese Hospital as well much of the budgets and infrastructure in the coming years.

Originally posted on the Chicago 77 Real Estate Blog Septmeber 11, 2009

Report Shows Further Signs of Housing Market Improvements in Chicago

More signs of improvement in the Chicago housing market according to the most recent Capital Home Data Index Market Report. With the increasing number of sales, the number of distressed properties sold decreased by almost 10% as home prices increased placing Chicago in sixth position among the highest performing major housing markets. Overall the study showed the Lakeview neighborhood to be the best performing neighborhood in Chicago with modest price gains and a very low REO saturation rate. The study showed better numbers for most lakefront neighborhoods. Lakeview is also is favored for quality of life, as well as for its famous resident: Wrigley Field.

Originally Posted on the Chicago 77 Real Estate Blog, Septmeber 8, 2009

The week after Labor Day traditionally marks the beginning of Chicago's fall real estate. As this has been a period of non-traditional activity, I have thought carefully about what are my expectations. The strengths and weaknesses in the marketplace will depend on what type of property in what area at what price. There is no blanket citywide answer. The one constant about Chicago real estate is that it is local to the building, the block, and the neighborhood.

Buyers

Overall there will be fewer home buyers out there than in years past but more than we have seen in the first months of this year. The majority of buyers have gotten themselves in a stronger position financially, coming into the transaction with larger down payments or just paying cash. Those who have the wherewithal to purchase are now actively engaging. These buyers have the opportunities to take advantage of short sales and well priced homes. If they are contracting to purchase a short sale they must have a clear understanding, no matter how financially qualified they are to buy, that the transaction is controlled by the sellers' lenders.

The strength of the lower end/first time buyer will depend on how the government reacts to the rising default rates on Federal Housing Authority (FHA) loans as reported in the Wall Street Journal. If FHA is forced to tighten its guidelines it will impact a large number of new construction and conversion condominiums which have typically been entry level products. FHA loans became popular with the demise of subprime mortgages, enabling purchasers to get into homes with only 3.5% down payments.

Sellers

Regardless of market conditions it is still about the space. If the space works for the potential buyer then pricing becomes equally important. Over the last months home values have been leveling off. With that said, overall values are significantly lower than in years past. A home's value is based on the last three sales in the last six months of comparable properties. Because of specific areas of high inventory levels, high rates of default, and foreclosure there are still pockets of the city that will continue to see devaluation.

What you paid for the home factors into your decision to list. Can you afford to sell it now for the current market value or do you have to sell? If you have to sell, will it result in a short sale? Most listings will not get many showings but each and every one is an opportunity.

REALTORS^®

There continue to be far fewer of us. It is down to 10% of real estate professionals doing 90% of the business. To get a transaction closed is a combination of the years of expertise, number of transactions, and the experience of working as a REALTOR^® in this perfect storm of the last eighteen months. These are the agents who have the skills to bring the offers, get them negotiated, and get a higher percentage of successful transactions in an environment where many contracts never get to the closing table.

The marketing of properties has changed as quickly as the real estate market itself. It is no longer about the Sunday paper, the glossy magazine ads, and entering listings into the MLS. It is all about Web 2.0 and social media. Knowing how to use the brand your brokerage offers, supplemented by the brand you have created for yourself as an agent to get your listings the greatest exposure. A professional agent must know where listings go and how to get them optimized. Saying, "the listing will go into the MLS and will be on the Internet" is not providing a service.

With a decade of experience as an active REALTOR^® I am optimistic. It is about overcoming objections, finding solutions, and understanding how to market. It is also gaining knowledge from my transactions as well as from the expertise of my colleagues. It is about constantly educating myself to accomplish what I am hired to do: the sales and marketing of real estate.

Originally Posted on the Chicago 77 Real Estate Blog August 31, 2009

According to an annual study conducted by Forbes magazine, Chicago is the most stressful city to live in for the second year in a row with Los Angeles and New York coming in second and third. The study takes into consideration the housing market, unemployment, cost of living, air quality, number of sunny days, and population density. Another factor in Chicago is the traffic. According to Stephen Dinwiddie, M.D., a psychiatrist at the University of Chicago, Chicagoans need to manage their stress by balancing home and work. His suggestions are easily accessible activities like going to the beach or a Chicago Cubs game. Most likely the cold, dreary, rainy summer and the Cubs performance has added to the stress levels to most of us that live here. He probably picked the worst two worst activities for 2009, but there are hundreds of other ways to in which to relax and have fun by exploring Chicago.

Originally posted on the Chicago 77 Real Estate Blog August 25, 2009

This morning Standard & Poor’s Case-Shiller Home Price Indices numbers were released and the results are surprisingly better than expected. In the Chicago condo market, prices showed an increase of 1.1% from May 2009 to June 2009. Over previous months we have seen the leveling off of pricing. This current report shows signs the Chicago housing market is on an uptick. It will probably be gradual but with this increase get the buyers setting on the bench waiting for the bottom to fall out back engaged in the market?

Several factors are contributing to prices being on the upswing. Supply and demand – less inventory always drives up prices in any industry. Property owners are holding off on listing, a significant of new developments are not getting built or converting to rental units and an increase in pending sales. Although there are less buyers are there right they are better quality. They have higher down payments then in the past, forced to because of the changes in lending guidelines. Home ownership is still an investment in yourself and your family.

Will the Signs that Home Prices are Starting to Go Up Get the Buyers to Buy?

Over the last few weeks, I have found that several of the buyers out there looking have reemerged. In communicating with other Realtors® they are experiencing the same. Buyers were looking 6 months to over a year ago. They are now in a position to move forward on their new home purchase. Some had to wait to their current home sold and it finally did. Others needed to save more money and clean up their credit. The rest where just waiting to see how low it will go. From today’s numbers I think it went.