August 2016

Found 4 blog entries for August 2016.

We all know about the many benefits of home ownership. One of the top reasons to own is protect yourself from rising rents and lock in your housing expenses for the life of your mortgage, typically 30 years. 

Don't become trapped!

Jonathan Smoke, Chief Economist at realtor.com, reported on what he calls a "Rental Affordability Crisis." He warns that,

"Low rental vacancies and lack of new rental construction are pushing up rents, and we expect that they'll outpace home appreciation in the year ahead."

In the Joint Center for Housing Studies at Harvard University's 2015 report on Rental Housing, they reported that 49% of rental households are cost-burdened, meaning they spend more than 30% of their income on housing. These households

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The National Association of Realtors (NAR) recently announced certain red flags that caused the housing crisis in 2005, and then  compared them to today's real estate market. Those four red flags are:

1. Price to Rent Ratio

2. Price to Income Ratio

3. Mortgage Transactions

$. House Flipping

All four categories were outside historical norms in 2005. Home prices were way above normal ratios when compared to both income and rents at that time. 

NAR pointed out that mortgage transactions as a percentage of all home sales were also at a higher percentage: 

“Loose credit was one of the main culprits of the housing crisis. Mortgage lending expanded dramatically as unhealthy housing speculation reached its peak and was met by the highest

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In the latest Rent vs. Buy Report from Trulia, they explained that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States.

The updated numbers actually show that the range is an average of 5% less expensive in Orange County (CA) all the way up to 46% in Houston (TX), and 36% Nationwide!

A recent study by GoBankingRates looked at the cost of renting vs. owing a home at the state level and concluded that in 36 states it is actually ‘a little’ or ‘a lot’ cheaper to own, represented by the two shades of blue in the map below.

According to the report, Illinois is one of the states where it is a lot cheaper to own than rent. If you are currently renting and have

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Pappageorge Haymes Partners

Demolition of the former Tag Outlet furniture warehouse in Lincoln Park is nearly complete, the first phase in what will eventually be a 76-unit multifamily project on the site near DePaul University. The number of units at 1730 West Wrightwood, which will be split into 30 condos and 46 apartments, was downsized from an original 105 units after plans were presented to the community, DNAInfo reports.

The development also includes 76 parking spaces and additional parking on Hermitage Avenue for visitors and deliveries. A unique addition to the project is a mural inspired by the surrounding community. Developers have put out a call for residents to offer their suggestions.

 

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