Chicago Condo Directory

Real estate experts hold a number of different views about today’s housing market–often at odds with one another.

The Illinois Association of Realtors (IAR) said on November 28th that October’s combined single-family and condo sales in the Chicago area were 15.4% behind last year’s sales, with prices up less than 1% from the previous year. The median price for single-family homes in October  was $242,000.

Condo sales in the Chicago area dipped about 5%, with prices up by about 3%.

Local real-estate agents say these numbers indicate a return to a “normal” market, with sales declining due to the arrival of autumn–when buyers’ attention is focused on the upcoming holidays and their children’s return to school.

“I don’t think the market is bad,” said North Side agent Pamela Ball, “it’s just normal for fall in a normal year.”

Ball did, however, comment that the properties that are selling are distinctively attractive and well-priced for the market. “[I]f you’ve got a condo on Sheridan Road, for example, and your box is like 400 other boxes, well, it’s slow,” she said.

The president of the IAR, Robert Zoretich, also said the market is “normalizing.” But he added that sellers will have to revise their price expectations before the market picks up again. “There are still people out there waiting for prices to come down . . . If people need to sell right away, they need to adjust their prices,” he said.

While some brokers expect sales to rise again in February when the traditional Spring market starts up, Paul Kasriel, chief economist for Northern Trust in Chicago, disagrees.

“I don’t think we’re going to bottom out on this thing till the latter part of next year,” he said, pointing out a report from the National Association of Realtors that showed nationwide sales flat and prices heading downward.
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Buying a Chicago home is a difficult choice and knowing whether or not the particular home you desire is affordable is an excellent start, however what many individuals don’t know is that good credit is not a definite requirement in order to purchase a home.  The higher your credit score, the more likely you will qualify for a lower interest rate. Even so, buying a home after bankruptcy is still an option.

Post Bankruptcy Home Loans 

Though home loans after a bankruptcy discharge have high rates, buying a home in Chicago remains an excellent method to quickly boost your credit score; some tips on getting a low credit score mortgage loan:

There are many options available to homebuyers with a low credit rating. Credit scores below 680 do not qualify for prime home loans. Hence, these individuals will need to speak with a mortgage broker or lender that deals with sub-prime mortgage loans. Sub-prime loans are intended to aid those individuals who cannot obtain traditional mortgage financing. These lenders work with all types of people and credit situations. Basically, sub-prime lenders have a multitude of different loan options.

Who Qualifies for a Sub-Prime Mortgage Loan?

Even with a low credit rating, you can get approved for a sub-prime mortgage loan.  If you truly desire taking up residence in a Chicago home there are things you should know before attempting to get a sub-prime mortgage loan, as there are limitations. Many lenders will not approve a mortgage loan if the borrower’s credit score is below 500 as this indicates a high risk situation for the lender. If you are seeking a home and fall into this category you may want consider improving your credit score before applying for a home loan.

Having a chapter 7 bankruptcy, collection accounts, and judgments will not disqualify a buyer from obtaining a mortgage loan with a sub-prime lender. The primary reason is that these types of lenders take on greater risks but with a higher cost to you; increased interest rates.  Although, if the home buyer maintains a good payment history, they will have the option of refinancing for a better rate in the future.

Other Loan Resources Post Bankruptcy
After bankruptcy, homebuyers have the option of obtaining a “no credit-score home loan.” Because lenders do not offer 100% financing on these loans, buyers must be prepared to pay a 20% down payment.

An alternative loan option available is the “zero down” home loan. This loan is offered to buyers with good and bad credit. “Zero down” home loans include 100% financing, which is perfect for first time home buyers and those with little cash savings. To qualify for a no- money down home loan, with bad credit, your credit score cannot fall below 580.

This morning it was announced that Oprah Winfrey, a name known by all, would be buying a $5.6 million co-op in Chicago’s Gold Coast community.

The East Lake Shore Drive property, whose asking price was a confirmed $6 million, was listed by Koenig & Strey GMAC, a real estate firm known to have done business with Winfrey in the past.

What does this have to do with the Luxury Buyers Market?

Well, Oprah will be listing her Water Tower Place condo and of course many individuals throughout Chicagoland would love the opportunity to purchase the Chicago celebrity’s former palace.  Many Chicagoans will be disappointed, as the terms “luxury” and “upscale” have been used for $500,000 to $2 million dollar home purchases, but this type of purchase falls into it’s very own category.

Listings like the selling of Oprah’s former residence at the Water Tower typically are not listed in the MLS searches nor are the readily available to unqualified buyers.  What this means is that realtors will make the listing private and subject to certain terms.  For instance, Gold Coast Agent, Jeri Dry,  stated:
“Any time I have a very high-priced listing, when a Realtor calls and asks for a showing, I say, `Can you tell me anything about your buyer?’ My seller needs to know before showing the apartment. It’s not unusual. If I have the buyer, they will ask me the same questions.

“I can’t think of a time, ever, when somebody has called for a showing without an agent.”

Potential buyers in the “ultra-luxury” bracket should expect that they would need to be pre-qualified.

Paul Boomsma, executive vice-president of a national marketing firm in Chicago, centered around real estate agents dealing in the high end real estate market, explains, “You might have to have a letter from a bank or from a financial institution that says you basically qualify to purchase a home in that price point.”

Buyers looking for the ultimate luxuries will need to dig deep and also have deep pockets.  Many of the celebrity homes and [real estate available to this price bracket are only known by a handful of realtors and passed along through word of mouth.

Individuals currently living in homes with this value would be suprised to find that many times they could be living in a celebrity home however many realtors are kept quiet and cannot use the celebrity names for leverage in marketing as several celebrities have been known to require non-disclosure agreements before viewing, purchasing or selling.

If you want to find out about luxury homes, new construction developments or possibly Gold Coast properties, search the Chicago Condo Directory.  Many properties typically not found on general MLS or posted for the public can be found.

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