Karen Breen Elia ChicagoCityHomes

Everyone knows the real estate market has faced turmoil in the last two years. While some markets still haven't quite hit bottom, there is good news in Chicago! Condo sales in the Windy City are showing improvement in dollar sales volume and have seen a decrease in days on the market. Condos make up a large portion of the Chicago skyline; you can find large concentrations along the lake front and most other downtown neighborhoods such as the South Loop, West Loop, Greektown, River West, Gold Coast, River North, Streeterville, Lincoln Park, Old Town, Lakeview, Wrigleyville, Buena Park, Bucktown, Wicker Park, East Village, Ukrainian Village, Andersonville and Edgewater neighborhoods. They offer the home buyer a wide variety of housing types; from the high rise with the much sought after views of magnificent Lake Michigan and the Chicago skyline, to the new construction low rise elevator buildings, to the rich detail of vintage walk ups.

Condos are a vital part of Chicago real estate. Each year, between 15,000 and 20,000 condo units change hands in Chicago! Recently, some of Chicago's most rapid growth has been along the Chicago River, and in the Near West, West and South Loop. While lofts are very popular, many buyers are finding condos in converted apartment buildings are generally about 20% less expensive than new-construction. These vintage buildings provide Old World charm for their residents. While there has been lots of new construction, you can have too much of a good thing, and that can mean good news if you are looking to buy a Chicago condo!

In previous years, there was a huge spike in new construction when it came to condos. Due to the housing bubble bursting, buyers can take advantage of the huge incentives being offered! In 2009 alone, there are 4700 new constructions scheduled to be completed. As of this year's first quarter, less than 60% were under contract. With the new lending requirements for condominiums, many developers are pulling out all stops! They are offering incentives like general upgrades, appliance upgrades, free deeded parking, and even extreme price reductions! Some developers are even offering special financing packages through their own lenders.

It does seem to be working. For the last three months, condo sales have shown improvement. Just from June to July, the dollar volume went up by three million dollars and sales prices have gone up! Probably the best news is that days on the market have gone down by 13%. With Chicago being the third largest condo market in the nation, this is indeed good news!!

With so many good things happening in the Chicago real estate market, don't miss your opportunity to get a great home at the right price! Interest rates are at their lowest in years! And don't forget, time is running out on the $8000 tax credit!! If you want to find your perfect Chicago condo, call Karen Breen Elia or Louis Elia at ChicagoCityHomes! Whether you are looking for a fabulous condo or a luxury home in the Windy City, they are your local real estate experts!

We have all heard the saying, "timing is everything!" There is a lot of truth in that little adage; timing is important. With so many things changing so fast in the housing market, it has also become a mantra for those waiting to buy a home. Many are sitting on the fence trying to perfectly time the moment to jump back into real estate, the moment when home prices are at their lowest but at the cusp of starting the climb back up. The biggest danger for sitting on the fence is never jumping off.

What are some key indicators it is time to get off the fence and buy? The first indication is the $8000 tax credit program which is soon to expire. If you want to take advantage of the program, you should be in the process no later than October 15^th to insure you will meet the December 1^st deadline! But there is more than just the tax credit program to consider.

Interest Rates: This is one of the major factors in deciding it is time to get off the fence. Of all the incentives to purchase a home now, the low interest rate is the most conducive. Tax credits are wonderful, but your interest rate is with you for the remainder of your loan. In timing your jump, you must consider these historically low rates. John Tuccillo, former Chief Economist for the National Association of Realtors and columnist for The Real Estate Professional, says the "Home loan rates have stayed historically low since the program (Federal Housing Program) began in January. So, this is another variable that could push Bonds down and home loan rates up in the future." (Mortgage Success Source, LLC) Interest rates are at some of the lowest in 40 years! You do not want to miss these rates!

Some of the other information you want to look can be found on your MLS listings. How long are houses staying on the market. What is the fastest moving price bracket? How fast are low priced houses closing and are more luxury homes stagnating on the market? Right now you see low and moderate priced homes moving at a faster pace than before. Home sales are picking up in these price brackets as the bargain hunters are out in full force. They recognize the signs the real estate market is stabilizing. Just like you should take note when they have stopped buying, you need to recognize the time may be right when they begin to return to the market.

Lastly you want to look at your local market, not just the national scene. This is where having a LOCAL real estate professional is critical. They can look at the market and help you interpret the signs for your area. For example, here in Chicago, historically home prices and values track inversely to employment trends. Job stability not only makes it possible for someone to purchase home, but can also cause an increase in commercial real estate sales as well. Chicago also tends to trend BEHIND the national numbers, so an increase or loss in jobs can happen slightly later here.

So, if timing is everything, why are you still sitting on the fence? If you are ready to jump into the real estate market call Karen Breen Elia or Louis Elia at ChicagoCityHomes! They can help you interpret the signs to know if the time is right! Don't get left on the fence! These historic low interest rates will not stay low for long and housing prices will begin to go up!

It is hard to believe, but time is running out to cash in on the American Recovery and Reinvestment Act's $8000 Tax credit for first time home buyers. Even though the program runs until December 1, 2009, if you want to take advantage of this program, you should be in the process no later than October 15th. To be sure you are eligible for the credit; you need to complete the purchase of your Chicago home by November 30, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner. With HERA and more stringent loan reviews, it takes much longer to get everything finalized for closing.

Let's take a look at who qualifies for the tax credit. Under this Act, a first time homeowner is someone who has not owned a principle residence in the last three years. They will check under both spouses name for married couples to confirm that neither has owned a home within the specified time frame. First time homeowners, as defined above, can qualify for a tax credit of 10% of the purchase price of the home with a maximum credit of $8000. The home purchased can be a new home or a resale, single family, condo or townhouse.

There are income limits as well. To receive the full tax credit, a single taxpayer's maximum income is $75,000. $150,000 is the maximum for married taxpayers who file jointly. Beyond that, the tax credit is calculated by income, up to $20,000 above the maximum. Just as an example, if a single taxpayer has an income of $95,000 they will not qualify for any of the credit. If they have an income of $85,000, then the credit amount is calculated according to that income. Your tax advisor can help you figure the actual amounts based on your income, if you are over the full credit income guidelines.

Because it now takes longer to get all your paperwork and loan documents approved through underwriting, you need to make sure you have the process started no later than October 15^th to insure you will close before the deadline! Don't delay. Take advantage of this government gift. Remember, that this is not a tax deduction, but a tax credit which directly reduces your federal income tax liability . If you have questions about the American Recovery and Reinvestment Act or if you are ready to start looking for homes, call Karen Breen Elia or Louis Elia at ChicagoCityHomes! These local real estate experts can help make your dream of owning your first home a reality!

In the last few years many things have changed in the housing and real estate business. The sub-prime mortgage crisis of the last few years has forever changed the landscape of homeownership in America. Many people are unsure what all the changes mean and how these changes will affect consumers. Also, when it comes to pre-approval and final approval of a mortgage, the days of instant approval and quick turnaround are over. What can you do to prepare for this process?

First, the key to understanding all this is HERA, the Housing and Economic Recovery Act of 2008. This act was passed on July 24, 2008 and signed by President Bush on July 30. The act was primarily designed to address the sub-prime mortgage crisis and the lending practices that precipitated it. The bottom line of HERA, was to change regulations and help endangered homeowners. If a lender was willing to lower the principal balance of a mortgage to 90% of the home's current appraisal, the FHA would back up to $300 billion in new 30 year fixed rate mortgages. It was only applicable to a primary residence. Also included in the act were tax credits that worked like interest free loans. Homeowners would pay back the credit over the next fifteen years. These, of course, are just the highlights. You can find more answers at the US Department of Housing and Urban Development. The Act was expanded with two important updates this year that regard appraisals and customer notifications of changes of lender terms.

HERA was also intended to prevent the sloppy and incomplete lending practices that, in part. led to the crisis. As a result, the way lenders process pre-approvals and final approvals have changed. Additional time mandated for customers to absorb and ponder mortgage notifications lengthen closing times. What used to take hours can now take days; what used to take days can now take weeks.

Let's start with pre-approval. It used to be that lenders would pre-qualify you for a loan; now sellers want pre-approval. Don't even bother with pre-qualification, which is an estimate of how much you will qualify for based on what you have told the lender.

For pre-approval, the lender will ask for documents such as: Photo ID, most recent W-2's, current pay stub (possibly for the last 6 months), and some may ask for information on any other outstanding loans. This information will be submitted to automated pre-approval process for the lender. Once you find your home, your information, along with any changes, will be submitted for a final approval with an actual underwriter. This process can take up to several days depending on how many other loans the underwriter is reviewing. Before the housing crisis, final approval was processed through an underwriting program and an actual underwriter may not have even reviewed your application.

As of May 1, 2009 appraisers were further shielded from outside influences, while it was mandated that borrowers received copies of their appraisal report at least three days before closing on their property. Effective July 30, additional HERA measures dictate that the closing cannot take place less than seven business days after the home buyers receives mortgage disclosures. Prior to receiving the disclosure, the buyer does not have to pay certain fees upfront. If the APR on the loan changes more than .125%, the buyers must get a revised Truth in Lending disclosure, which will add at least another three days to the time when closing occurs.

On a final note, for a foreign national to consider purchasing a property, pre-approval MUST be completed before even beginning the process of looking for a home. Some realtors have gone as far as requiring a pre-approval letter before showing any homes. There are several requirements added to the list for a pre-approval in this case. The first obstacle is Visa status. If you are a foreign national you must hold a long term visa or your country of origin must be on the Visa Waiver program. Secondly, you must be able to transfer bank funds into the United States. You need to check with your bank to make sure there are no limits on what you can transfer to the US. Finally, the most important point is that you must have a valid passport.

While all these changes may seem intimidating, working with a real estate professional will make the whole process smoother. Now more than ever, a great agent is worth their weight in gold!! Contact Karen Breen Elia or Louis Elia at ChicagoCityHomes for help you get prepared to buy a home and find one for you on Chicago's North Side. If you are having problems paying your mortgage, they are also Certified Distressed Property Experts (CDPE) and can help you examine your options.

P.S. - HERA authorized the first $7,500 tax credit, which has since been replaced with President Obama's $8,000 credit. Time is winding down on this credit which expires December 1, 2009. It can take over 45 days for the house to close, so hook up with Karen or Lou to get the ball rolling!

The operating principle for our company is Making a Positive Difference in People's Lives. These words have always been more than a slogan on a business card for us. Throughout the years, we have helped new buyers locate their first homes and been there when they were ready to upgrade. We have fielded financing questions and tried to step outside the box to help our clients through sometimes difficult real estate transactions. We recently decided to take this a step further and are now pleased to announce that we have acquired our Certified Distressed Property Exert (CDPE) certification.

The housing market has changed in Chicago and the rest of the nation over the last two years. Many homes are in foreclosure, even after record numbers of people have already lost their homes. Housing prices have fallen from the boom years. Sellers must realistically expect less while many homeowners are not even in a good position to sell as their mortgage loans exceed the value of their homes.

This situation has created a demand for Realtors® who are well-versed in all aspects of the current market dynamics. Many of our potential clients are in trouble. The prospect of foreclosure is both financially and personally devastating. Hovering on the brink of foreclosure, they need both help and hope from a Realtor® specially trained in helping them try to avoid foreclosure. Even the process of buying a home in various stages of foreclosure, making a short sale offer, or bidding on a bank-owned home require knowledge and skills that most Realtors® do not have.

A CDPE has been trained in the intricacies of distressed property - a term that actually applies to any property that has lost value through physical damage, zoning changes, lack of curb appeal, or market conditions. As a result of the change in value, the owner has difficulty making the payments or selling the property. A CDPE can assist the owner in a short sale, improving the chance that the lender will agree to accept less than the amount owed. This negotiation is often a hard sell that requires paperwork, time, and patience. Though this type of sale may take months to complete, it can successfully prevent foreclosure for the owner. CDPEs also guide clients toward loan refinancing and modification solutions.

A CDPE cannot promise to save the home of everyone who walks in the door, but for troubled homeowners who seek help early enough, there may be another solution. According to Alex Chafren of the Distressed Property Institute, 85% of homeowners who work with a CDPE can avoid foreclosure.

We have always been willing to help our clients. Now as CDPEs, we are even better equipped to do so. If you find yourself wondering if foreclosure is your only way out, Karen Breen Elia and Louis Elia at ChicagoCityHomes may be able to help you. As a part of the 1% of realtors with the CDPE designation, we can also help you if you would like to buy a foreclosed home.