Yuval Degani

This past November around 8,000 homes were sold in Illinois, which is a 14.2% increase from November 2010. As stated in a recent article in the Chicago Tribune, the market for Chicago homes in the nine-county Chicago Primary Metropolitan Statistical Area (PMSA) reported an even greater outcome: a 20.7% increase in sales.

The Illinois Association of Realtors announced the monthly improvement in statewide home sales, which includes condo units and single-family homes. The total number of closes rose to 7,954 for the month of November, up from 6,996 last year. Chicago home sales rose 20.4 percent from last year with 1,377 homes sold in the city. Sales in the Chicago area totaled 5,453 in November 2011 (up from 4,518 a year earlier).

Despite more robust sales figures, the median price reported across the state for November 2011 was down to $128,500 (11.4% less than in November 2010, when the price was $145,000). The median price of Chicago homes went down 14.3% from $182,500 in November 2010 to $160,000 this year.

In an interview in the Chicago Tribune, the President of the Chicago Association of REALTORS Bob Floss spoke about Chicago’s distressed homes market and how such properties are still responsible for lowering sale prices as buyers grab up deals. Floss said in the article, “Low interest rates and smart opportunities to buy make for favorable market conditions for both buyers and sellers looking to right-size to their lifestyle,"

The average interest rate for a fixed-rate mortgage lasting 30 years in the North Central region was 4.0% in November 2011. This is a very slight decrease from October when it was 4.07%. As Floss points out in the Tribune article, a recovery in the housing market is making itself known with the uptick in home sale activity, which he suspects will continue through 2012.

President of the Illinois Association of Realtors, Loretta Alonzo, stated in a release that was also reported in the Tribune, "As we move through the distressed properties, predominant in the Chicagoland market, and begin to see more positive reports on the jobs front we will be looking for some stabilization in home prices to coincide with the rising home sales."

The favorable trends occurring in both the Chicago PMSA and Illinois housing markets are largely attributed to the low housing inventory levels and high number of pending sales, according to Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory of the University of Illinois, also quoted in the same Tribune article.

Most homebuyers have at least one thing in common. Whether they are picky or easygoing, whether they have a family or live alone, whether they want to pay in cash or get a mortgage—they almost all want to look at homes that are already move-in ready. So before even thinking about putting your Chicago home on the market, it is absolutely essential that you ensure it is in peak condition. With all the competition in the current real estate market, buyers are more likely to seriously consider your Chicago home for sale if it is in immaculate shape.

This means you have to consider the experience of buying your home from the buyer’s perspective. The first aspect to consider is how your Chicago home looks from the road—its “curb appeal.” If you were an interested buyer driving by your place, would you stop to see more or just keep on driving? For starters, the yard should be clean and tidy. Winter can be a tough time for lawns, but try to keep them as free of leaves and brown grass as possible. Set out some cold climate plants to bring added life to the landscape. Evergreens are probably your best bet.

If the exterior paint-job on your house is looking shabby, it’s a good idea to add a fresh coat. You might even take the opportunity to freshen up the look of your house by changing the paint color, especially if it has not been updated in some time. Consult a colorist or your real estate agent first, though, before doing anything drastic. Yes, you want something eye-catching, but you also want something that will appeal to the majority of buyers.

Anything in or around your home that needs maintenance should be immediately repaired—especially if it is visible from the street. Your home should appear well-maintained and tended to because buyers can form an opinion about the place within seconds of seeing it.

Chicago homeowners whose houses lack inherent architectural appeal can take several steps to increase the overall exterior appearance of their home. Adding shutters to the windows or an added structural flourish to the entryway can intrigue passersby and prompt them to want to come inside. It can also help to make the front door a bold, contrasting color to the rest of the house so it stands out.

When it comes to listing your Chicago home for sale, keep in mind the inestimable power of the Internet. A large majority of homebuyers (roughly 90%) use the Internet to search for homes. So make sure you have an agent who utilizes the web to market your home through as many online channels as possible. Also bear in mind that buyers like to see numerous pictures of properties when they are browsing online. So don’t be stingy with the photographs. A dozen or more images is ideal.

The National Association of Realtors (NAR) recently released their analysis of the condition of America’s real estate market for the month of October, and the numbers seem to be pointing in the right direction. Most significantly, their Pending Home Sales Index showed an impressive 10.4 percent increase in pending home sales in the U.S. last month—the largest growth in the index since last year’s October-to-November jump. This good news follows several straight months of marked index growth across the country, and may prove an omen of good fortune for America’s real estate market.

The NAR’s Pending Home Sales Index—measured on a monthly basis—compares current real estate figures to those in 2001, when the housing market was at a peak. An index of 100 represents the average contract activity for that year. The monthly index for October was 93.3, climbing 9.2 percent from last October’s recorded index.

In addition to an increase in the national index, the NAR reported that three out of the four U.S. regions experienced marked improvements in home sale contracts during the month of October. The Midwest experienced a particularly significant monthly growth of 24.1 percent, bringing its regional index up to 88.7. Only the West witnessed a marginal decrease in its index, though it still remains the region with the highest index rating. All four regions showed year-over-year growth in the month of October, especially the Midwest.

Also reported along with the Pending Home Sales Index was the NAR’s December 2011 U.S. economic forecast. The association projected the annual gross domestic product to rise by 1.7 percent by the end of the year, with a 2.5 percent growth the following year.

Existing-home sales should increase as well, according to the NAR’s figures. The organization predicted a 1.2 percent increase in 2011 and a 5.1 increase in 2012. Though the NAR forecasted a decrease in national home prices this year, it expects values to recover some 2.6 percent in 2012.

As for the unemployment rate, it should gradually increase over the next few years—from 9.6 in 2010 to 9 percent this year and 8.6 percent the following year.

See: real estate in Chicago

Far from being a time when Chicago home sellers should curl up and forget about marketing their property for the course of a month or two, the holidays are an optimal time period during which to aggressively advertise your listing—at least according to a recent poll conducted by Realtor.com. The website’s Holiday Home Selling Survey questioned some 429 real estate professionals over the course of a few weeks to weigh their opinions about selling one’s home during the holidays—defined as Thanksgiving (Nov. 23, 2011) through New Year’s (Jan. 2, 2012).

The results of this poll will be surprising only to those who believe holiday home selling is a grave mistake. A majority of those surveyed (60 percent) said they categorically advise their clients to actively market during the holidays, as it is a “good time to sell.” Thirty percent said they would sometimes advise a client to sell if they were motivated, while only 1 percent said they would never advise selling during the holidays because it is a “bad idea.”

According to the survey, there are numerous reasons why selling a home during the holidays can prove a major advantage to the seller. The most popular (with 79 percent) is that buyers are generally more serious and motivated about buying a home during the holiday season. This is because many purchasers have to relocate for their job and need to move fast, or are first-time buyers, looking to purchase during a lull in buyer competition. In fact, 61 percent of those polled by Realtor.com listed “less competition” as a significant plus when selling one’s home during the holidays.

While one of the advantages to holiday home selling cited by realtors in the study is that cold weather can make a home feel cozier, the cold weather can also prove a deterrent for less serious buyers. Some 39 percent of agents polled said that winter weather was one of the biggest disadvantages to holiday season home selling.

The biggest challenge, however, according to 63 percent of respondents, is maintaining a property’s upkeep—making sure it is always “open house ready.” The wear and tear of constant visitors, holiday parties and the general chaos that comes along with the holidays can often prove detrimental to the overall appearance of a home on the market. Sellers should always strive to keep the look of their home as immaculate as possible, even in the midst of holiday craziness.

Did you know that your mortgage is currently working in your favor when it comes to applying for credit? The likelihood of gaining new credit may be enhanced simply by carrying a mortgage, despite the state it’s in.

In a recent article published by Janet Dedrick of the Equinox Finance Blog, she states that people with mortgages are seen as lower statistical risks to credit card companies. Consider the following: 42% of new credit cards have been issued to people with mortgages and 60% of new credit has been issued to those with mortgages. Half of these people have a mortgage at or below $200k and 35% have mortgages between $100k and $200k.

What if the current state of the mortgage on you Chicago homes is less than ideal? According to Dedrick this doesn’t necessarily rule you out in the credit world. She says that 35% of those surveyed for this study are currently underwater on their mortgages and 30% of new credit holders with a credit score above 700 are also underwater. According to those stats, credit lenders are willing to take mitigating circumstances into consideration when releasing new credit.

The value of your Chicago home and equity accrued are key components to obtaining new credit lines. Those with equity in their homes are better equipped to weather financial hardships (i.e. loss of job, medical emergency, payment of a child’s college tuition bill, or otherwise). As the economy does its best to stabilize, consumers have begun spending again and credit card companies are offering more cards and services to accommodate American spending habits.

Some things are simply out of consumers’ control, but having a mortgage that’s underwater doesn’t automatically make you a lesser candidate to obtain new credit.