A Personal Residence

1. if you are not planning to own on the North Shore for at least five years you will most likely not be getting positive returns on your investment. The longer you own it, the better the chances for appreciation in value and wealth building.

2. a good personal real estate investment is one that will increase your net worth over time. you need to look at how much you are paying in housing expense versus how much that amount would be if you were just renting someone else’s property. So the overall question again is, “Is your wealth going to improve by owning the property?”

As proof positive on this, find someone who has owned real estate for 20, 30, 40 years and ask them what is a good real estate investment? It is generally easy to find them, they are retired, living comfortably, and usually happy to tell you about the properties they bought years ago!

Investment Properties

1. your returns are part cash flows and part appreciation in value. For example, if your property rental income minus expenses produced $250 per month positive ($3,000 per year); and your invested cash equity was say $50,000, that’s a cash on cash return of 6.00% ($3,000/$50,000). And that is a pretty darn good deal in real estate.

2. some investment properties my not be worth a second look! Often, unconventional property such as a boat house or beach front cabana on an island no one can pronounce are ones to stay clear of. Purchase something like that and expect the net rental income to be low compared to the purchase price, usually resulting in  projected negative cash on cash returns. So if you buy a fancy property with negative (4.0%) cash on cash returns, even if it appreciates 2.0% per year, you are typically at a 0.0%, or worse, return on your equity cash investment. And that isn’t a deal most experienced investors would take. Will January or 2012 be your time for real estate investing?

See additional North Shore real estate investment information and investment/mortgage calculators HERE and HERE

Housing prices in the year 2012; based on the findings from the research firm Fiserv,  historical data is weighed against current trends to get a sure bet on which way the markets might jump at one-year increments.

With that said, there has been a recent increase in Chicago’s North Shore mortgage applications, while mortgage delinquencies are expected to decline during 2012. This forecast comes as potential homebuyers become more confident in the nation’s housing market.

National mortgage loan application volume, spiked 12.8 percent in the week ending December 2. Meanwhile, the Refinance Index rose 15.3 percent from the previous week and now makes up 76 percent of total loan applications. Across the board,  it’s estimated that real estate prices will drop before rising by the fourth quarter of 2012. Why is that important? Both homeowners and potential buyers might be better able to make an informed decision about when, and whether, they should move or stay put.

Bottom line, indicators point to hardest-hit markets beginning to see improvement by 2012. An added positive is that mortgage rates continue to hover near historic lows and that 85.5 percent of applications for home purchases were for 30-year fixed-rate mortgages, while 6.8 percent were for 15-year…..More here and here

November property real estate sales for Chicago’s North Shore were 8, down -27.3% from 11 in November of 2010 and -33.3% lower than the 12 sales last month. November 2011 sales were at their lowest level compared to November of 2010 and 2009. November YTD sales of 126 are running 26.0% ahead of last year’s year-to-date sales of 100.

Prices

The Median Sales Price for Glencoe in November for example, was $993,750, up 52.9% from $650,000 in November of 2010 and up 7.5% from $924,500 last month. The Average Sales Price in November was $1,301,563, up 25.8% from $1,035,005 in November of 2010 and up 28.6% from $1,012,053 last month. November 2011 ASP was at highest level compared to November of 2010 and 2009.

Inventory & MSI

The Total Inventory of Properties available for sale as of November was 96, down -9.4% from 106 last month and down -17.9% from 117 in November of last year. November 2011 North Shore real estate Inventory was at the lowest level compared to November of 2010 and 2009 reports. A comparatively lower MSI is more beneficial for sellers while a higher MSI is better for North Shore buyers. The November 2011 MSI of 12.0 months was at a mid range compared with November of 2010 and 2009.

Market Time

The average Days On Market(DOM) shows how many days the average North Shore real estate Property is on the Market before it sells. An upward trend in DOM tends to indicate a move towards more of a Buyer’s market, a downward trend a move towards more of a Seller’s market. The DOM for November was 223, up 99.1% from 112 days last month and up 89.0% from 118 days in November of last year. The November 2011 DOM was at its highest level compared with November of 2010 and 2009.

Inventory / New Listings / Sales

This last view of the market combines monthly inventory of Properties for sale along with New Listings and Chicago’s North Shore Sales. The graph shows the basic annual seasonality of the market as well as the relationship between these items. The number of New Listings in November 2011 was 9, down -57.1% from 21 last month and down -50.0% from 18 in November of last year.

1. Distressed Properties Will Impact Prices

Distressed properties (foreclosures and short sales) on the market will increase this fall and winter. This will put tremendous downward pressure on prices for at least the next 12-18 months. Get your home sold before they become your competition.

2. Mortgages Will Become More Difficult to Attain

Lending standards are continuing to tighten. There is legislation currently being considered that will make it even harder for buyers to qualify. Less demand will equate to lower prices.

3. It is the Perfect Time to Move-Up

With prices where they are and interest rates at all time lows, there may have never been a better time to move-up into your dream home.

4. You Get to Move On with Your Life

Probably the most important reason to sell is so you can get on with your life. You are considering selling for a reason. Do not allow a less-than-stellar housing market prevent you from reaching your goals as an individual or as a family…MORE

Last but not least, let’s address buying a North Shore home. Market indicators suggest now is the time to do just that. Some will say realtors highlight this fact to create transactions and commissions. Because of that, listed below are supported quotes from individuals outside of the real estate profession who offer sound financial advice. Take note of the 3 quotes:

1.“It’s an excellent time to buy a house, either to live in for the long term or for investment income…Houses aren’t the magic wealth creators they were made out to be during the bubble. But when prices are low, loans are cheap and plump investment yields are scarce, buyers should jump.” It’s Time to Buy That House-WSJ

2.“The previous declines in house prices and the more recent drop in mortgage rates to record lows have created an unusual situation in which the median monthly mortgage payment is more or less the same as the median rental payment.”

3.“Even with a dismal 1% growth rate over 30 years, a $300,000 property would appreciate well over $100,000 giving the homeowner an additional nest egg for retirement… At a time when retirement is becoming much more challenging, an extra $400,000 (or likely more) can make a major difference not to mention the impact of NOT having to pay a mortgage.  How much less would you have to save for retirement if you didn’t pay the mortgage?” …MORE INFO

In the end, when real estate professionals, a trusted financial newspaper and an iconic financial magazine say that it now makes financial sense to purchase or sell a house, perhaps it is time.

Symmetry is not only pleasing to the eye, it’s also the simplest to arrange. Symmetrical compositions of light fixtures and front-door accents create welcoming entryways. This door is flanked by two sidelights. The black lantern-style sconces not only safely guide visitors to the door, but also coordinate with the black door and urns.

House numbers, the entry door lockset, a wall-mounted mailbox, and an overhead light fixture are all elements that can add style and interest to your home’s exterior. If they’re out of date or dingy, your home may not be conveying the aesthetic you think it is. These elements add the most appeal when they function collectively, rather than as mix-and-match pieces. Oiled-bronze finishes suit traditional homes, while brushed nickel suits more contemporary ones.

Your home’s front entry is the focal point of its curb appeal. Make a statement by giving your front door a blast of color with paint or by installing a custom wood door. Clean off any dirty spots around the knob, and use metal polish on the door fixtures. Your entry should also reflect the home’s interior, so choose a swag or a wreath that reflects your personal style.

In a Day: Do a mailbox makeover

Mailboxes should complement the…MORE

Yes.

But even with mortgage rates as low as they are, for some people, “it just doesn’t make sense” for them to refinance a rental property, or they are being told they can’t refinance an investment property.

How can this be?

In today’s mortgage market, quite a few home loan programs for investment properties are available through Fannie Mae or Freddie Mac — but there are still portfolio lenders offering investment property programs that Fannie Mae and Freddie Mac don’t offer.

Translation: Just because one lender tells you it isn’t possible to refinance your investment property, it doesn’t mean that it isn’t possible.

For those people who have recently heard that it wasn’t possible to refinance their investment property, it is likely that they were given one of two common reasons: MORE

Property Sales

September Property sales were 6, equal to 6 in September of 2010 and -57.1% lower than the  14 sales last month.  September 2011 sales were at their lowest level compared to September of 2010 and 2009.  September YTD sales of 105 are running 32.9% ahead of  last year’s year-to-date sales of 79.

Prices

The Median Sales Price in September was $674,500, down -31.0% from $977,500 in September of 2010 and down -26.7% from $920,000 last month.  The Average Sales Price in September was $1,096,083, up 12.0% from $979,000 in September of 2010 and up 2.6% from $1,068,786 last month.  September 2011 ASP was at highest level compared to September of 2010 and 2009.