LIL' BUDDY'S BLOG: Chicago Real Estate Market Sluggishness Leaves Many Humans in a BAD MOOD!
THE CHICAGO IL REAL ESTATE MARKET, AND OTHER THINGS CHICAGO, FROM THE POINT OF VIEW OF A LITTLE WHITE DOG!
Did you see the Chicago Cubs Game today? I was there, sitting quietly in the Left Field Bleachers, when a Cub meltdown happened again - against the rival Milwaukee Brewers, nonetheless! We lost, 4-3, but need to get back up on four paws and get 'em tomorrow - down in St. Louis, of all places.
Well, at least I still have my vintage 1956 Ernie Banks Cub Cap to brighten me up!
Barking about a bad mood - our Team members are really seeing near massive depression among many buyers and sellers here in the Chicago Real Estate Market, 2008 Edition.
As a Second Buyer's Agent on our Team, I often work closely with our Buyer's Specialist, Kathleen Weaver-Zech, talking with prospective new home buyers, and taking them on the road to see prospective houses that might suit them. Prices are way down here versus a couple of years ago - so you'd think these buyers would be happy to find bargain after bargain in the Chicago Housing Market.
Often times, however, they view the houses, and go back home, without action. Many wait for Chicago Home Prices to fall even further! "We haven't hit a bottom yet," some say.
You know, this dog has studied the Real Estate Market here for most of my adult life (I'm nearly three years old, you know). But, I've never been able to accurately predict when any market, real estate or otherwise, is at bottom. Is there anyone out there, four-pawed or two-pawed, that can precisely predict market bottom? If you can, I bet you'd earn a lot of money!
Even when buyers buy, they often feel remorse that they paid too much. They manifest this remorse by making ridiculous inspection repair requests, or requests for a large monetary credit during the inspection period immediately after the contract gets accepted. If they don't get big money here, they often blame US TEAM MEMBERS for not fighting hard enough for the money.
Then, when they do close, they fear prices will go down even further, short term. So they become nervous!
In fact, many buyers don't even get to the point of closing in the transaction. First-time buyers sign another lease. Repeat buyers go back to their homes, and swear they will wait until the market improves. But when will that be - and won't that make the price of the new home they may buy more expensive once again? Woof - hard to figure!
Sellers take a different angle. Many put off going to market if the lack the strong motivation to move to a different home. In fact, we ENCOURAGE THEM TO WAIT if they really don't have strong motivation to move.
But a few are very disappointed by how average home prices around Chicago have fallen, and average market time and inventory levels have risen, within the past 12 months or so. They find another, perhaps less passionate real estate agent to "agree' with them - and are only disappointed months later when their home didn't sell.
Many then swear off ALL Realtors, even though the chances of selling without the assistance of a Professional Real Estate Practitioner in a weak market is very low, and go For Sale By Owner. That failing, depressed, they slink back in to their living room couches, and turn the Cubs Game back on, on their new 60" HDTV's!
Today, our listing clients include one elderly couple in the Portage Park Neighborhood of Chicago, whose house remains unsold despite $50,000 in price reductions over the last few months, and another owner of a beautiful Executive-Styled house in the Chicago Suburb of Bartlett IL who put off his job transfer plans for at least a year or two, because the house he and his wife paid $675,000 in 2006 is now only fetching offers in the mid-$500's!
Again, no sale = VERY DEPRESSED SELLERS!
One of our former seller clients, living in suburban Oak Park, home of classic Frank Lloyd Wright Residences, couldn't successfully negotiate an offer in April, 2007 for $580,000. Their beautiful, updated-vintage home needed a price reduction two months later - to the upper $560's - but still no sale!
Now listed with another agent, the asking price is $539,000, and they have had two offers fall through this year. Talk about being blue - these folks are!
Buyers and sellers used to RAVE about Dean's Team Service - now, often, beaten down by the market - they just say "Thanks, guys! We know you did your best!" Again, bluer than blue!
You humans, I want to say cheer up - things will get better! You rarely see us dogs depressed, or in a bad dog mood, do you?
But the price of a gallon of gas in the Chicago area often exceeds $4.00 per gallon, milk is more expensive, eggs are more expensive, pizza is more expensive, and Meaty Bones are more expensive.
Wouldn't it be nice if things went back to the way they were, prices got cheaper, people got a bit friendlier, and folks began to buy and sell more homes again?
Some things might - but that may take a while, I'm afraid. In the meanwhile, try to strut a bit, raise your head and tail high, and be a little friendlier. Things will work out - and you can rub my little belly with gusto once again.
Give me a bark anytime - I love to read your comments and emails!
YOUR ACE REPORTER ON FOUR PAWS,
BUDDY HOLLY MOSS & DEAN'S TEAM CHICAGO
