I try and give my clients a balanced view of the market and really dedicate myself to advising them on what is best for them, not what will lead to the quickest sale for me. Sometimes I find myslelf saying, "You will just have to trust that my best intentions are to give you the actual (not inferred) professional information so you can make an informed decision about buying (or selling or whatever)". They usually say "We can tell (or we know) what kind of person you are and we do trust your opinion".
Here is an email I sent recently which highlights one way I try and educate my clients about the importance interest rates have on their purchase (instead of focusing on price drops which leads most news stories these days). In our search areas, there is a pretty healthy market in some areas so I can have this kind of conversation:
I completely understand your concerns about the market and the shift it is taking now and the impact that will have on your purchase. Here is some insight you might take into consideration when making your purchase which I think is really relevant. There are two important variables you should consider when buying in this market outside of condition and location: pricing (your concern) and the cost of money (loan rates). Nationally prices are down and rates are up. Locally the prices are up and down depending upon what neighborhood you are looking at. The rates were down, then up and now back down to where we started the year (yesterday was a good day dropping to the same rate as in February.
Look at the attached pdf showing the effect a 1/2 point increase in rates will have on your payment versus a 5% DROP in price. They are the same! See the article from Time Magazine outlining in more detail the concept of buying in this market and how rates are equally if not more important in our area. Rates are going to go up because of the inflationary pressures on them. Keeping an eye on the fluctuation in loan rates is more important than prices in our area because they are changing must faster.
Attached is the condo summary I finished a few weeks ago for the 3Q and while number of units are down across the board, pricing is relatively stable in most of the areas we are looking (Gold Coast average price up 3%, Lincoln Park up 1%, Lakeview down 1% etc.). In a healthy robust market, condos see a 3% annual average price increase in Chicago so these numbers are quite good in this market and compared to other areas in the city and beyond. This is certainly not what the media would have you believe; that the bottom is dropping out. Don't get me wrong, it IS in some areas of the country (and in the city). Look at West Ridge condo average prices DOWN 21% or sadly in Austin median prices down 43%. Look too in Lincoln Square/North Center a 14% increase in median prices compared with a year ago. That's pretty impressive. Summer quarter saw median prices up in Lakeview 4.72%, up in Lincoln Park 8.06% and up in the Gold Coast 2.44%.
Remember, while nationally you are correct prices will most likely continue to fall, areas like Lakeview and Old Town continue to see prices rise. Really the more important effect on your next purchase will be interest rates. Know this too I would not be saying this just to get a sale. I really believe these ideas to be true and especially considering you do not need to sell, it is a really good time to buy.
Market Snapshot of the Old Town neighborhood in Chicago for condos market activity for Fall Quarter, 2008
The total number of Old Town , Chicago condos sold for the third quarter, 2008 was 614 units compared with 846 units in 2007 down 27% from the previous year and down 10% since 2003.
The median sales prices of Old Town (Chicago) condos for the same quarter was $397,000 compared with $377,000 in 2007 up 5% from the previous year and up 23% since 2003.
The average sales price of Old Town (Chicago) condos for the same quarter was $540,821 compared with $526,148 in 2007 up 3% from the previous year and up 38% since 2003. Note the disparity between median and average prices showing the skewed effect the higher priced Gold Coast condos has on the average price figures.
The average market time of GOld Town (Chicago) condos for the same quarter was 144 days compared with 119 days in 2007 up 21% from the previous year and up 129% since 2003.
For a full neighborhood and city wide report visit www.ChicagoHomeBuzz.com
Market Snapshot of Gold Coast/Old Town (Chicago) condos for Fall Quarter, 2008 ChicagoHomeBuzz.com
The total number of Lincoln Park , Chicago condos sold for the third quarter, 2008 was 614 units compared with 846 units in 2007 down 27% from the previous year and down 10% since 2003.
The median sales prices of Gold Coast/Old Town (Chicago) condos for the same quarter was $397,000 compared with $377,000 in 2007 up 5% from the previous year and up 23% since 2003.
The average sales price of Gold Coast/Old Town (Chicago) condos for the same quarter was $540,821 compared with $526,148 in 2007 up 3% from the previous year and up 38% since 2003. Note the disparity between median and average prices showing the skewed effect the higher priced Gold COast condos has on the average price figures.
The average market time of Gold Coast/Old Town (Chicago) condos for the same quarter was 144 days compared with 119 days in 2007 up 21% from the previous year and up 129% since 2003.
For a full neighborhood and city wide report visit www.ChicagoHomeBuzz.com
Market Snapshot of Lincoln Park (Chicago) single-family homes for Fall Quarter, 2008 ChicagoHomeBuzz.com
The total number of Lincoln Park , Chicago single-family homes sold for the third quarter, 2008 was 47 units compared with 53 units in 2007 down 11% from the previous year and down 10% since 2003.
The median sales prices of Lincoln Park , Chicago single-family homes for the same quarter was $1,300,000 compared with $1,425,000 in 2007 down 9% from the previous year and up 17% since 2003.
The average sales price of Lincoln Park , Chicago single-family homes for the same quarter was $1,528,101 compared with $1,719,981 in 2007 down 11% from the previous year and up 31% since 2003.
The average market time of Lincoln Park , Chicago single-family homes for the same quarter was 163 days compared with 174 days in 2007 down 6% from the previous year and up 159% since 2003.
For a full neighborhood and city wide report visit www.ChicagoHomeBuzz.com
Market Snapshot of Lincoln Park (Chicago) Condos for Fall Quarter, 2008 ChicagoHomeBuzz.com
The total number of Lincoln Park , Chicago condos sold for the third quarter, 2008 was 309 units compared with 295 units in 2007 up 30% from the previous year but down 30% since 2003.
The median sales prices of Lincoln Park , Chicago condos for the same quarter was $412,000 compared with $430,750 in 2007 down 4% from the previous year and up 17% since 2003.
The average sales price of Lincoln Park , Chicago condos for the same quarter was $465,037 compared with $458,382 in 2007 down 1% from the previous year and up 21% since 2003.
The average market time of Lincoln Park , Chicago condos for the same quarter was 101 days compared with 94 days in 2007 up 7% from the previous year and up 87% since 2003.
For a full neighborhood and city wide report visit www.ChicagoHomeBuzz.com
Committed to providing the highest level of professional real estate services to each of my buyer, seller, investor and builder clients. Lincoln Park, Gold Coast, Streeterville are just a few...
I can talk all I want, but sometimes it's better to let others talk about my services. Finding a real estate agent is a very important part of the home buying and selling process. Finding someone you can trust to act professionally and with your best interest in mind is of paramount importance. Here is a sample of some previous clients testimonials they filled out after our real estate transaction was completed:
"I just wanted to thank you for all of your great help with the (sales & marketing of the) Magnolia Condo Development . You did a fantastic job and it was very much appreciated. I believe the insight, input, support and friendship you provided during the entire process made a tremendous difference in the overall outcome and success of the project and I felt fortunate to have you involved. I wish you continued success and look forward to the chance to work with you again in the future" ~ Paul P.
"I have worked with other Realtors in the past, but none have been able to save me as much time or money as Jim Gramata. Jim listened to my needs and quickly helped me find the perfect property at a great price in the South Loop. Jim's industry experience as a contractor and a realtor was invaluable during the entire search" ~ Todd M.
"Jim was fantastic. He listened to what we were looking for and found a number of places that fit within what we were looking for. He helped us look for properties everyday and when we were ready to make our offer, he walked us through our options and strategies step by step. I don't think we could have done this without him and I would recommend Jim to anyone. Continue everything you are doing now." ~ Catie G.
"Thanks to Jim , I found more than I could imagine, because he knew the market and the area better than I did. He kept me from settling for lesser properties. His approach was kind, gentle, non-pushy and yet he was assertive when negotiating for me. As a single women who had never bought a home before, Jim was ideal! I felt really watched out for." ~ Staci B.
"I was very happy with my first home-buying experience. Jim made everything easy to understand and painless" ~ Colleen G.
“Jim’s wealth of knowledge and experience combined with his good nature and attention to detail make him an outstanding Realtor®. On both the sale of our condo and the purchase of our new home, he did a fantastic job and was a real pleasure to work with” ~ Jim & Limia W.
“We highly recommend Jim to anyone interested in buying or selling”
“Jim made everything easy to understand and painless”
“I don’t think we could have purchased our home without Jim”
“I would recommend Jim to anyone”
“We listened to the Podcast, and that lead me to your site. Everything looks, and sounds awesome. I’ve been writing loans for eight years and I’ve never seen a Realtor go to this length to give professional and reliable information”
“Jim was great”
“Jim was extremely professional”
“He worked within our budget and timeframe”
“Jim was fantastic”
“Jim was low pressure and yet met all my needs"
"He was a huge advocate throughout the process and easy to work with on all levels"
"As far as I am concerned, Jim is perfect!"
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