It's Here and the People love it!

Well my new Video Window is here and boy am I excited. Not only will I get rid of all the old paper listing on my windows but now my sellers, buyers and potential renters will be able to see the photo's of the various properties as well as hear a description about the them too. I've had it up just about a week it's been amazing on how well it's been received. In addition to having sales and rentals on this we will also be adding fund raisers and festivals that are going on in the community. For additional information contact me and we see how we can help.

Bargain Hunters Picking off deals but not much Activity

I just received the latest Credit Suisse Market Report, which I'm a contributing member. They tell or format what agents are saying and reporting in over of 30 largest cities in the United States. The National Association of Realtors says all markets are different and that is so true, especially here in Chicago. When at the Realtors Convention in November, our Chief Economist for the Association was saying how we are going to see a turn around and as I'm listening I'm thinking yes there will be a turn around, but the biggest question is when? As he's passing out statistic's on what's going on I'm wondering if I'm in my own little world because we aren't seeing that here. Buyers are buying short sales & foreclosures but the resale market is almost non-measurable. Unless a seller has to move and willing to reduce 20-30% of their price they are not selling. I've had sellers asking what's wrong with my house because no showings and all I can say it's the market. I tell my clients contemplating on selling "if you don't have to sell stand put and it'll be 2-5 years when the market starts to have some stability" On the other hand if they have to sell "it's bite the bullet and sell where you have to because when you rebuy and most want to, they'll be buying back in at the same low or even lower price".

Bottom line to anyone wanting to buy, you better steal it! I've seen deals where the price paid is 40% off and it's just a matter of time when the market does come back then you will have immediate equity and that's better that the stock market.

Future of Real Estate Plus or Minus

I just looked into my Crystal ball and guess what I saw??? Your right there is no such thing as Crystal ball but if there was one this is what I think I’d see.

Real estate is never going to be like it was with 10% appreciation per year or more or have the price double like it did every 10- 12 years. Sorry it's just not going to happen.

Here is good example of what I’m taking about in just one aspect of real estate . In the 1970’s , I know I’m dating myself but I’m an old guy, apartment building whether a 2 flat or multi-family property was priced 8 to 10 times net of the building and no one was paying more than that price because everything was based on what the return was based on your investment. Now comes the dreaded “Condo Conversion” and with that everything changed . With condo conversions sellers started pricing them as if they were already converted and that sent prices out of control and pretty much killed the apartment business as we knew it. Almost never in the last 20 years did I see an apartment building pay for itself that’s right it cost you money! The total rents minus expenses weren’t covering the payment. Why in the world do you buy something to lose money? Well if there is any shot you can sell them off as condo's you might be able to make some money. You've heard about getting in early whether it's buying stock for Google or real estate ideas and after a while once everyone ( novices) knows about it that's when the rug is pulled out from everyone.

Here’s what we are seeing today in just Cook County, the latest figures say 35% of owners are upside down on what they owe compared to what they paid. If you check out the latest sales on 2-4 unit building were back to 8 to 10 net. So if you buy today your getting 8 to 10% return on your money. Don’t count on the appreciation just pay it off and you’ll have a nice income for a long time.