RISMEDIA, March 25, 2008-Sales of existing homes increased in February and remain within a fairly stable range, according to the National Association of Realtors®.
Existing-home sales - including single-family, townhomes, condominiums and co-ops - rose 2.9 percent to a seasonally adjusted annual rate of 5.03 million units in February from a pace of 4.89 million in January, but remain 23.8 percent below the 6.60 million-unit level in February 2007. The sales pace has been in a fairly narrow range since last September.
Lawrence Yun, NAR chief economist, said the gain is encouraging. “We’re not expecting a notable gain in existing-home sales until the second half of this year, but the improvement is another sign that the market is stabilizing,” he said. “Buyers taking advantage of higher loan limits for both FHA and conventional mortgages will unleash some pent-up demand. As inventories are drawn down, prices in many markets should go positive later this year.”
The national median existing-home price for all housing types was $195,900 in February, down 8.2 percent from a year earlier when the median was $213,500. Because the slowdown in sales from a year ago is greater in high-cost areas, there is a downward pull to the national median with relatively fewer sales in higher priced markets.
Home prices within metropolitan areas are more telling. The most recent data shows roughly half of the metro areas in the U.S. with price increases, with healthy gains in markets such as Oklahoma City and Trenton, N.J. “In other areas such as Sacramento, a rapid price decline has induced buyers to come into the market and sales are now rising,” Yun said. “The relationship between home prices, interest rates and income has improved to the point where buyers are more serious about making offers.”
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 5.92 percent in February from 5.76 percent in January; the rate was 6.29 percent in February 2007.
NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said that negotiation and knowledge are even more important in the current market. “Consumers need to be aware of local market conditions and comparable sales prices to have a clear picture of a home’s value,” he said. “Realtors® understanding of local markets, negotiating expertise, and transaction experience are invaluable to both buyers and sellers, today as much as ever.”
Total housing inventory fell 3.0 percent at the end of February to 4.03 million existing homes available for sale, which represents a 9.6-month supply (3) at the current sales pace, down from a 10.2-month supply in January.
Single-family home sales increased 2.8 percent to a seasonally adjusted annual rate of 4.47 million in February from an upwardly revised 4.35 million in January, but are 22.9 percent below 5.80 million-unit level a year ago. The median existing single-family home price was $193,900 in February, down 8.7 percent from February 2007.
Existing condominium and co-op sales rose 3.7 percent to a seasonally adjusted annual rate of 560,000 units in February from a downwardly revised 540,000 in January, and are 29.7 percent below the 797,000-unit pace in February 2007. The median existing condo price (4) was $211,700 in February, which is 4.9 percent lower than a year ago.
Regionally, existing-home sales in the Northeast jumped 11.3 percent to an annual pace of 890,000 in February, but are 26.4 percent below February 2007. The median price in the Northeast was $264,800, up 0.4 percent from a year ago.
Existing-home sales in the Midwest rose 2.5 percent in February to a level of 1.24 million but are 19.5 percent below a year ago. The median price in the Midwest was $143,900, which is 7.1 percent lower than February 2007.
In the South, existing-home sales increased 2.1 percent to an annual rate of 1.99 million in February but are 22.0 percent below February 2007. The median price in the South was $163,400, down 8.6 percent from a year ago.
Existing-home sales in the West slipped 1.1 percent to an annual rate of 920,000 in February, and are 29.2 percent below a year ago. The median price in the West was $290,400, down 13.4 percent from February 2007.
For more information, visit www.Realtor.org.
RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.
ChicagoAgentMagazine.com
CHICAGO (March 19, 2008) – Rubloff Residential Properties, Chicago’s premier residential real estate firm, today announced its three top producing sales agents for 2007, who amassed a combined nearly $150 million in sales despite a slowing market.
For the third year in a row, Mario Greco earned the top spot, achieving more than $90 million in sales for the year. Close on his heels were Kevin Wood with $33 million in sales and Judy Pielet with $32 million in sales. Each sales agent was awarded with the firm’s coveted Crystal Award at a recent all-company breakfast.
“Although Chicago home sales are down, Rubloff had its second best sales year ever with total sales volume reaching $1.16 billion on nearly 2,600 residential real estate transactions,” said Howard Weinstein, co-owner of Rubloff Residential Properties. “This success is a testament to the talented and hard-working staff here at Rubloff. We’re optimistic that we will start to see improvement in the market by the end of Q2 2008 and are confident our sales agents will turn in another banner year.”
Mario Greco, who leads The Mario Greco Group out of Rubloff’s Lincoln Park office, began his career in real estate in 2002 and has been a top producer ever since. He arrived at Rubloff in early 2004 and has since won the title of top agent each year for the past three years. Mr. Greco leads a team of 15 dedicated members to conduct business in traditional brokerage (buyers and sellers) and works with developers/builders to sell the resulting new or rehabbed homes. He has received the Chicago Association of Realtors Platinum, Bronze, Silver & Gold Awards for Volume & Units Sold from 2003 through 2006 and was named to Metro Chicago Real Estate Magazine’s “40 under 40” list of Chicago real estate professionals in 2005.
“I am honored to be named the company’s top producer and have already gotten off to a great start in 2008, completing 10 closings in January alone,” said Mr. Greco. “When offering excellent customer service, utilizing the latest technologies and providing a real understanding of the industry, there is no reason a motivated agent can’t succeed even in a down market.”
Kevin Wood of the Lincoln Park office took Rubloff’s number two spot for the second year running. Ms. Wood entered the real estate industry more than 15 years ago after more than a decade in corporate banking. She has since developed an impressive portfolio of successful sales, focusing her expertise in new luxury single-family construction as well as rehab.
“Some reports have stated that prices are slipping,” said Ms. Wood. “However, Rubloff’s average residential property sale price in 2007 was $449,000 – less than a $25,000 decrease from last year and more than $10,000 higher than 2005. Of course the market may have softened slightly, but these numbers show that you can still get a good price for your home.”
Judy Pielet ranked third among Rubloff’s top producing agents. Working out of Rubloff’s flagship Magnificent Mile office, Ms. Pielet is an expert in relocation as well as local sales, but her main objective is to remain completely committed to the needs of her buyers and sellers. This commitment earned Ms. Pielet a Quality Service Certification (QSC) Platinum rating, the highest level of customer service achievement offered by the organization. Ms. Pielet ranked in the top one percent out of the 50,000 Quality Service Certified sales associates across the country. These rankings are based upon the detailed service quality results and satisfaction feedback of 200,000 customers nationwide.
“Rubloff sales associates have earned more QSC, Graduate of Realtor® Institute (GRI) and Certified Residential Specialist (CRS) designations than any other real estate office in the Chicago area,” said Mr. Weinstein. “Our agents have the experience and proven track record to help consumers in every aspect of the buying and selling process – providing personal attention at every step along the way.”
About Rubloff
Since its founding in 1930, Rubloff Residential Properties has been part of the fabric of Chicago and its outlying areas, offering some of the finest properties in the best locations. Rubloff’s seven sales offices are conveniently located across Chicago, the city’s North Shore and Michigan’s Harbor Country (New Buffalo).
For more information, please call 312-368-5300 or visit the award-winning Rubloff Residential Properties web site at: www.rubloff.com.
RISMEDIA, March 19, 2008-(MCT)-All eyes were on the Federal Reserve Tuesday as its policy-making committee tries to spark the sick U.S. economy back to health, slashing short-term interest rates by three-fourths of a percentage point. The cut brings the federal funds rate to 2.25 percent.
As recently as Friday, investors were signaling that they expected the Fed to cut rates by half a percentage point. But that was before the spectacular weekend collapse of investment bank Bear Stearns, whose value stood at $3.5 billion on Friday before it was sold Sunday night for just $236 million to J.P. Morgan Chase after a run on it by investors.
The Fed brokered the $2-a-share sale of Bear Stearns. Shares of J.P. Morgan Chase, which purchased it, rose 11% on Monday, pulling the Dow Jones Industrial Average into positive territory. The Dow closed Monday up 21.16 points to 11,972.25.
Sunday night the Fed also widened access to credit like never before in a muscular bid to keep banks and other institutions lending and corporations and investors borrowing.
“These moves by the Fed are a prelude to additional bold action to reduce rates,” said Brian Bethune, U.S. economist with forecaster Global Insight in Lexington, Mass. He predicted a full percentage-point cut.
As of Tuesday morning, Wall Street was all but certain that a cut of at least three-quarters of a percentage point was coming and hopeful for a full percentage point, which would have put the Fed’s bellwether short-term “federal funds” rate at 2%. That would bring the prime rate, which banks charge to their best customers, down to 5%.
“We continue to expect the funds rate eventually will reach 1.5 percent,” said Mickey Levy, chief economist of Charlotte, N.C.-based Bank of America, in a note to investors.
What such low interest rates would mean for consumers isn’t clear, since turmoil in the credit markets means that banks aren’t lending. Instead, they are hording capital to shore up their balance sheets.
Lower rates could bring down some variable rates on credit cards, but credit card companies have been raising rates out of fear that the economic downturn will lead to more loan defaults.
The falling rates could help ease the sting for homeowners whose adjustable-rate mortgages are about to reset higher. But many of these loans adjust based on factors not directly affected by the Fed’s benchmark rate.
The Fed has already cut the funds rate from 5.25% last September to 3% in January. So far that’s done little to revive the U.S. economy, which has been in increasing turmoil since August.
The Fed has also made available more than half a trillion dollars in credit to banks and securities dealers in hopes of spurring lending and preventing credit markets from seizing up.
There were glimmers of hope Monday as the difference between yields on mortgage bonds and other safer financial instruments-called the spread-narrowed. One day does not make a trend, but it’s a possible sign that the fear gripping credit markets could be easing.
“These areas have tended to lead other areas of credit, so if we can hold onto these recent gains, there should be improvement in the tone of risk in general,” said Michael Darda, chief economist for MKM Partners, a stock trader and research firm in Greenwich, Conn.
Lyle Gramley is less optimistic. He’s a former Fed governor and has spent more than 50 years studying financial markets.
“If you look back at post-war recessions, I thought I knew that when the Fed pushed the accelerator, we’d leave problems behind. We just don’t know that now–that’s one of the most scary parts of the situation that we find ourselves in,” Gramley said. He believes that taxpayer dollars and more government intervention are needed.
President Bush and Treasury Secretary Henry Paulson have made clear that they’ll oppose bailouts of lenders. In a brief statement after meeting with his economic team on Monday morning, Bush said, “One thing is for certain, we’re in challenging times. But another thing is for certain: We’ve taken strong, decisive action.”
Monday could have been a far different day if not for bold action by the Fed to broker the sale of Bear Stearns in order to prevent its bankruptcy.
“To allow this to go to bankruptcy would have allowed systemic problems that could have been massive,” Senate Banking Committee Chairman Christopher Dodd, D-Conn., said in a conference call to U.S. reporters from Belgium.
The Fed on Sunday night also made a quarter-point cut in its discount rate, which it charges as the lender of last resort to banks. It extended the loan repayment time frame to 90 days from the normal 30-day terms, accepted as collateral a broad range of financial instruments including mortgage bonds, and made credit available to not just investment banks but also securities dealers.
Although U.S. stocks averted disaster Monday, share prices for financial sector players were hammered as concerns persisted about whether other big players were vulnerable to a run by investors, as Bear Stearns was.
“You know the old saying about cockroaches, there’s never just one,” said Howard Simons, president of Rosewood Trading, an economic research firm in Glenview, Ill. “One thing we’ve learned the hard way over the past year is, just when you think there’s no more bad news, there’s more bad news.”
© 2008, McClatchy-Tribune Information Services.
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RISMEDIA, March 19, 2008-Considering all of the negative press the housing market received in late 2007, it’s more important than ever for buyers to separate fact from fiction when deciding on a time to buy a home. This report is intended to help home buyers assess the facts of the real estate market objectively.
About Inventory
FACT: The housing market is undergoing a natural cyclical correction. It’s impossible to ignore the ongoing news surrounding the downturn of the housing cycle. The recent “housing boom,” which lasted from 2001 to 2005, was caused by low interest rates and a rapid increase in property valuations, resulting in high numbers of renters opting to buy. Three factors caused this decade’s housing boom to spiral upward:
1) A run-up in home-price valuations that spurred a high sense of urgency in home buying and selling.
2) Poor lending practices, which caused many home buyers to secure loans that they ultimately couldn’t afford over the long term.
3) Speculative purchases of homes also increased, with buyers investing in real estate with the hope of a quick return on investment.
Like the dot-com bust, the housing market has begun to correct itself after a number of years of unwise purchasing, but unlike what the media would have us believe, a correction in the housing market doesn’t equate to a crash. Unfortunately, the ongoing negative news about the troubled areas in the U.S. has caused a ripple effect, with home buyers and sellers on a national level exercising caution before making a decision. This has caused an overall slowdown in the marketplace.
The National Association of Realtors’ chief economist, Lawrence Yun, projects that nationally, the “median existing-home price will drop about 1.7% this year. This is a small, minor adjustment after a strong run-up in housing prices.”
True, the number of homes sold in 2007 will have dropped from the year before, but 2007 is still among the highest years on record, with numbers of sales for both 2007 and 2008 projected to be even higher than the levels seen in 2002.
However, with homes taking longer to sell, the number of homes on the market has grown. In markets like California and Arizona where homes are taking much longer to sell than the 11-month national average, this has caused a glut in the marketplace.
In the Pacific Northwest, where the inventory of homes on the market ranges from seven to 10.5 months as of November 2007, this equates to good news for buyers who have more homes at more price ranges from which to choose.
About Mortgages
FACT: Low mortgage rates give buyers more house for their dollar.
With the 30-year fixed rate hovering between 6-7%-a 45-year low-qualified buyers continue to have access to incredibly low interest rates. This means that although housing prices have risen, monthly mortgage payments remain reasonable for those who look at real estate as a long-term investment. For example, today if a buyer secured a 6.5% interest rate on a 30-year fixed loan for a $300,000 home (with no money down), the monthly mortgage payment would be $1,896.20. In 1991, the same monthly mortgage payment would have bought a house worth only $230,492 when mortgage rates were 9.25%. In 1982, when the 30-year fixed rate was 14.6%, the same payment would have bought a house worth only $151,657.
FACT: Heavy speculation and overbuilding result in an increase in foreclosures when prices go down.
The media has been focusing on the hardest-hit areas of the country that have seen a dramatic downturn in the market: California, Nevada, Florida and Arizona. Over the past five years, these markets have experienced an abundance of new housing, a rise in investment properties and a rise in prices that was high above the national average.
Now that home prices are starting to drop and stabilize, the areas that went through a building frenzy and experienced the largest price increases are suffering a heavy devaluation in home prices, which in turn has caused homeowners to foreclose on loans.
Those suffering the most in California, Nevada and Florida are far above the national average of foreclosure with one out of every 325, 152 and 282 homes in foreclosure, respectively. Washington, Oregon and Idaho are well below the national average of one in every 617 homes in foreclosures because fewer home buyers in the Pacific Northwest opted for subprime mortgages and because home values have continued to steadily appreciate.
Washington has seen one in 1,072 homes in foreclosure, and Oregon and Idaho have one in 1,275 and 893, respectively.
FACT: Subprime borrowers get a reality check.
Then there are the problems that are affecting subprime borrowers: those who are considered at a higher mortgage risk due to a past history of bankruptcy, delinquent loan payments and low credit scores. During the last number of years, some home buyers in the U.S. qualified only for these riskier subprime loans to fund the American dream.
But, again, unlike the media’s portrayal, the reality is that subprime loans comprise only 9% of total loans nationwide and of those 9%, less than 11% of those subprime ARM and fixed borrowers have defaulted on their loans. The Pacific Northwest stands apart as its own micro-market, with more home buyers qualifying for prime loans. Homeowners in the Northwest have been able to successfully sell their homes for a profit or refinance to pay off their subprime loans.
Real Estate Cycles and Economics
FACT: Over the long-term, real estate has always appreciated in value.
The continuing appreciation of homes in the Northwest is not an anomaly. Real estate has always been one of the most solid investments in the U.S, because, after all, people always need a place to live. Real estate has less volatility than the stock market and over the historical long-term it remains a guaranteed return-on-investment. Take this example from NAR’s Yun: If a buyer were to put down $10,000 for a down payment on a “typically priced home in the United States at a typical appreciation rate of 5%…(he/she) would see a return of $110,300 after 10 years. The same $10,000 invested in the stock market appreciating 10% annually will result in $23,600.”
As history has shown, for those who choose to keep their home for six to 10 years (and not flip for a quick profit) real estate investments do pay off, and pay off well. In fact, what we’re seeing now is a repeat of a housing cycle we’ve seen before. In the early 1980s and 1990s, some areas of the country experienced the worst downturn they had seen in the last 25 years, which were caused by localized economic weaknesses and loss of jobs while on a nationwide average, others, including the Pacific Northwest were barely affected at all. But even those areas that were hit the hardest in the past experienced a historic uptick in prices, and then a continuing long-term appreciation.
Excerpted from a January 2008 Report from John L. Scott Real Estate
For more information, please visit www.johnlscott.com.
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This is the first in a series of profiles saluting Condo Superstars, agents who ranked in the Top 10 for selling the most Chicago condos in 2007.
From Engineer to Esquire to Extraordinary Agent Name: Mario Greco. Brokerage: Rubloff. Age: 37. Years as Agent: 6. Transaction Rank: 7 (142 units). $ Volume Rank: 7 ($57 million). Resale $ Volume Rank: 1 ($35 million). Condos (as % of business): 59%. Source of Statistics: Multiple Listing Service of Northern Illinois (MLSNI), Chicago condos closed in 2007
In 2001, Mario Greco, an honors graduate from Northwestern University in both chemical and environmental engineering and from Boston University in law, was earning $200,000 a year as an attorney.Yet, every morning, the 30-year-old son of Italian immigrants awoke with an empty feeling in the pit of his stomach. He dreaded his work in intellectual property litigation as a senior associate at a prestigious Chicago law firm. For one thing, any decision he was allowed to make had to be reviewed by three management levels above him. Over the next two years, two real-estate agents changed his life. The first, his buyer’s agent for the first condo he bought, served as a negative role model, teaching him how easy it was to earn $8,000 by doing nothing and being unprepared. The second, an ex-attorney who was listing agent for the first home he and his wife, Julie, bought, did everything right. And he persuaded Mario to follow in his footsteps. In September 2002, Mario left his law career to become a full-time real-estate agent. Julie was encouraging; his parents told him he was a fool. (They have since told their son they are proud of him.) When he awakens these days, Mario can’t wait to get to work. Typically, the 37 year old is in the office by 4:30 a.m.—answering e-mail, searching MLS hot sheets, searching the MLS for active buyers–and doesn’t return home until 9 p.m. In 2007, his passion and enthusiasm helped him earn the No. 7 rank in selling Chicago condos.To his way of thinking, Mario ranks as Chicago’s No. 2 full-service condo agent. By full-service, he means excluding agents who sell their own developments, who work exclusively or primarily with developers or who sit in sales offices all year selling new-construction and includes only agents, like himself, who generate their own business.Using that definition, Mario ranked No. 1 in units sold (transactions) in 2007 among the 15,500 members of the Chicago Association of Realtors. In dollar volume, considered the more important metric since commissions are based on it, Mario placed No. 2 among full-service agents, trailing only Jeff Lowe of Century 21 Sussex & Reilly. In dollar volume of resale (existing) city condos, excluding new-construction units, Mario is indisputably No. 1, with $35 million sales in 2007.Although The Mario Greco Group has 16 additional members, including seven sales agents, Mario as the group’s leader generates 99% of all sales. His agents, who are paid a bonus for each deal, generally just show units.
In 2007, Mario personally sold 142 units, with a combined value of $57 million. (And condos represent only 59% of his business. His total gross sales were $103 million!) Of that $57 million, he earned $2.7 million in commissions, before splitting fees with brokerages, paying his 16 people, advertising and other expenses.And 2007 simply continued a series of record years. Since January 2002, Mario has sold $438 million in real estate: $9 million in year one, while still a practicing attorney; $30 million in year two; followed by annual sales of $70 million, $90 million, $101 million and, last year, $103 million. In the first nine weeks of 2008, he sold $35 million.Any way you slice the statistics, Mario is a Condo Superstar.What is Mario Greco’s secret? What motivates him? How did he get to the top? What advice does he have for other agents who want to climb into the Top 10? What is the personal cost to him? What does he predict for the condo market?In an interview in Rubloff’s Lincoln Park office recently, he candidly answered those questions, and more. In his own words:
How does it feel to be a Top 10 Condo Superstar? Even after six years, success still creates a good feeling.
What are your secrets to selling so many condos?
* Motivation: Work ethic of immigrant parents (father held three jobs). Satisfaction of helping people. I’m a great front-runner. I don’t like to play catch-up. Each client is a different puzzle to solve. My greatest satisfaction comes from having a huge impact in peoples’ lives: helping them find a home, advising them on their most important investment.
* Strengths: Ability to read, relate to and connect with, anyone. Organized, detail-oriented. Some agents have told me their clients enjoyed our showings so much, they bought my unit even though they may not have initially liked it as much as other units. I delegate everything that is not of substance so I can focus on three things: meeting new clients, negotiating, showing. I possess a great radar for people-reading. I’m a life-long Sox fan, so if I’m making a presentation or a showing on the South Side or notice something that indicates a certain allegiance, I anticipate that my potential client likely will be a Sox fan and act accordingly.* USP (Unique Selling Proposition): Structure (staff), organization (staff), and detail-oriented staff that supports me. A full-time scheduler. All showings are followed up with immediate e-mail to the client and a follow-up call to the agent. I have a full-time person whose only job is to gather feedback from each showing and send a summary spreadsheet to sellers every Tuesday.* Mix: Ratio of listings to “solds” is 70/30. Ratio of new to resale is 30/70. I don’t try to create an ideal balance between the two; I take what comes.* Help from others: 90% referrals; 10% call me and want my help, including smaller developers.* Role of Internet: It’s growing. We’re relaunching MarioGreco.com as a blog-centered site. Fewer than 10 clients have resulted from cold Internet leads. My site is more a tool to sell listings. Someone comes from a search engine, sees I’ve sold several units for $1.2 million and knows I can sell his or her million-dollar home.
Why do you sell so many condos? They are more affordable, so more people buy them. Also, there are more condos than homes on the North Side, where I do 95% of my business.
Who is your toughest competitor? I am.
What is your greatest weakness? Sometimes I’m stretched too thin.
How do you enjoy your personal time? Our lives tend to center on our five dogs, all of them “rescues.” We even live where we do because our home is near a dog park.
What was your path to success? A child of immigrants, I was raised, along with two siblings, by a stay-at-home mother and a father who taught high school and held two other jobs. My parents gave me a great work ethic. Their dream for me was a “stable” career, such as a doctor or lawyer. I followed their dream. During college, I worked as an engineer for Dow Chemical and Monsanto. After graduation, I went directly to law school in Boston. Back in Chicago, I worked for three law firms. I got my Realtor’s license on 1/11/02, began selling real estate on the side. That September, I started selling full-time and never looked back.
What advice do you have for agents who want to become Superstars? 1) Work hard (there’s no substitute), 2) price correctly, 3) spend money to make money. Spend money on: a. staff (start with an assistant who enables you to focus on clients), b. branding yourself (consistently), c. marketing your listings.
My most effective advertising: yard signs with “Contract Pending”; Just Listed and Just Sold postcards to every home within three blocks of every listing. We get mailing lists from tax records. I spent about $30,000 on postage last year. I’m an old-school guy: There’s no substitute for yard signs and word of mouth.
When thinking of adding an assistant, don’t think of it as $30,000 a year in expenses, but as an investment that will help you sell an additional property per month. Hire enough people to delegate to so you can focus on substance.
I’ve never made a single cold call, never called a “FSBO” for a listing. I prospect, but I don’t troll. I have no written business plan or goals for new-construction vs. resale, etc. I take what business comes my way. I go with the flow. I have all the numbers in my head, as well as my business plan, to the extent I have one. My accountant and bookkeeper do track every dollar in and out. I want to grow organically.
What is the cost of being a Superstar? The personal toll: Not being around family and friends, enjoying a Sox game, etc. I work 100 hours a week, 20 of them managing, 80 selling. On a typical busy weekend, we show 100 properties.
Mario and wife, Julie, on vacation in Argentina
Also, now that my original buyers are becoming sellers (and buying again), they expect the same level of personal service I gave them when I had fewer clients.
What do you look for when hiring agents? They must be responsible, personable and detail-oriented.
Why should buyer/seller work with you? To profit from my personal attention and the support of our staff, we go where our motto promises: “Above and Beyond.”
Looking back on 2007:
* Most important decision: To ignore the pessimistic reports of a crumbling market in the media and keep a positive attitude and keep spending money on staff and marketing.
* Highest moment: Being name exclusive listing agent for a 150-unit project at 47th and Cottage Grove in Hyde Park, called The Shops and Lofts at 47.
* Lowest moment: Scheduler decided to leave group while I was on my only vacation for all of 2007. I’m still trying to recover.
* Biggest mistake: Putting off for yet another year upgrading my Web site.
Looking ahead in 2008:
* Market forecast: This year’s condo market will be much better than 2007. Unit sales will be up 10 to 20%. Appreciation will be up 3%. My sales are already up 25% year to date, to nearly one a day.
* No. 1 goal: To balance my life and not allow my “out time” to be violated (with phone calls, etc.).
* How increase rank: I hired a second scheduler and am making my Web site more visible to search engines.
* Biggest challenge: Balancing my life while still managing a growing business and an expanding staff.
* Blog plan: I’ve hired a college student to manage the creation of a blog-centered Web site by a Silicon Valley company and a freelancer to write daily posts. If I have several new listings in Lakeview, for example, we’ll post a story on a new shop in that neighborhood. When users Google Lakeview, my site will pop up at, or near, the top of search results.
What would you rather be? Nothing. I’m really happy doing what I do and being who I am.
http://rismedia.com/wp/2008-03-06/act-local-think-global/
By Paige Tepping
RISMEDIA, March 8, 2008-Thinking globally is a must for real estate practitioners these days. In an age when people own multiple homes-some halfway around the world-it’s vital to have an international reach. Halstead Property’s Diane Ramirez and Sharon Michnay understand this concept wholeheartedly. The president and director of corporate business development, respectively, lead the only New York-based firm-and one of only two non-European brokerages-to join in a partnership with the European Real Estate Network (EREN).
“Our partnership with EREN came about from a conversation we had at an international 
symposium we were attending,” says Ramirez, “The synergy between the New York City and European markets is clear and we all realized that a partnership between Halstead Property and EREN would benefit all of us.”
“Through our dialogue with EREN, it was obvious that they were committed to the same things that motivate us at Halstead,” says Michnay. “We were very similar to EREN in regards to the level of commitment to the industry and our clients.”
EREN is the only pan-European network for independent, luxury brokerages, and the opportunity to join the prestigious organization has created immense opportunities for Halstead Property.
“Together, we are breaking new ground toward the goal of making the purchase and sale of properties across borders as seamless as it can be,” says Ramirez. “Working with EREN is more than just a partnership for us; it is a true working relationship.”
Thus far, the partnership continues to be a learning process for both sides. “The amount of knowledge that we have gained from partnering with EREN has been immeasurable,” says Michnay. “We are still learning new things about the European market with every conversation. Not only do we continue evaluating ways to work better together, but we also learn about the ways in which our real estate practices differentiate.”
“In working with EREN, it is important to understand the differences between the real estate industries in the United States and in Europe,” adds Ramirez. “For example, it was a revelation to the European market that they could work with just one agent in New York City, and that agent could provide them with all of the information they need before purchasing a property.”
While Halstead has always worked with foreign buyers and sellers, this latest partnership only strengthens Halstead’s efforts, according to Ramirez and Michnay.
“Expanding our global reach is not just important to our company right now, but it was also important in the past and will continue to be so in the future,” says Michnay. “As the amount of wealth that people have continues to increase, so will the number of people who can afford to own homes in more than one place. We want to be the company to best meet these customers’ needs.”
Located in “internationally dubbed” New York City, Halstead takes its hometown classification very seriously. Working for a company that offers full service in every aspect of the word, Ramirez and Michnay believe that their commitment to better serve their customers and clients is only strengthened by their global affiliations.
“By partnering with EREN, we are able to showcase international properties through Halstead.com. In one quick click, we provide the ability to search for luxury homes around the globe,” says Michnay. “In turn, EREN showcases our exclusive listings to European buyers.”
According to the company, one visit to www.halstead.com clearly defines Halstead Property’s reach. The company displays three different international search options on its homepage, each one representing a partnership or affiliation. In addition to EREN, Halstead Property is an active member of several international organizations, including Leading Real Estate Companies of the World (LeadingRE) and Luxury Portfolio Fine Property Collection.
“Our Leading Real Estate Companies of the World affiliation enables us to showcase available residences from around the world in our magazines and websites in a way that displays the strength of this fantastic global real estate network,” says Ramirez. “One of its greatest benefits is that over 60,000 referrals are sent between members annually.” LeadingRE’s revamped www.relohomesearch.com site and its broker-reciprocity program also helps place Halstead Property listings at the top of the search engine rankings, while allowing all of their exclusive listings to be showcased on the websites of over 700 members worldwide.
Halstead is also actively involved with Luxury Portfolio. This partnership has enabled Halstead to present exclusive listings on www.luxuryportfolio.com, which offers conversion into 22 currencies and full-text translation into nine languages. The site receives daily traffic from over 150 countries. In addition to the online offerings, Halstead regularly takes advantage of the program’s attractive and effective print ads in the European and Asian editions of the Wall Street Journal.
“Our involvement in the global market is so successful because of the active manner in which we and our partners work together,” says Michnay. “We are proud to be part of an international collection of local experts who share a high set of standards, ethics and service.”
Working with the European market and its other global affiliations has allowed both Ramirez and Michnay to bring fresh ideas and new insight into their own marketplace, as well as provide new ideas for their European partners.
“When you are so caught up in your own marketplace, you get into a cycle of repeating what has been successful in the past,” says Ramirez. “It’s refreshing to see something from a different angle and to bring new ideas into your own market. Now that the relationship has been established, we are gaining knowledge with each passing day. Traveling to international symposiums to learn about other markets and to share information about our own company and market, gives us the opportunity to serve our clients in the broadest sense possible.”
The relationships are just the beginning, and the knowledge gained is what will propel Halstead Property to the forefront of the globalization of the real estate industry.
“We are in the position now where we can create programs and initiatives that cater to our international audience,” states Ramirez. Several new initiatives are underway, including marketing campaigns with partners in Ireland, England and Spain. More are in the works ranging from online currency converters to new service programs.
“Looking toward the future,” concludes Michnay, “we will be able to continue providing the highest levels of service in New York, and we want to be able to provide the same level of service anywhere in the world. EREN and all our partnerships are part of our ability to accomplish this goal.”
For more information, visit www.halstead.com.
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Home values have declined across the country, giving homebuyers the best buys they’ve had since 2004.
By Les Christie, CNNMoney.com staff writer
March 4 2008: 1:30 PM EST
NEW YORK (CNNMoney.com) — It may be the best time to buy a house in more than four years.
Home prices have dropped so quickly and so far that valuations - the difference between what a home should cost and its actual price - are the lowest they’ve been since 2004, according to a report.
The Cleveland-based bank National City Corp. (NCC, Fortune 500), together with financial analysis firm Global Insight, revealed Tuesday that more than 88% of the 330 housing markets surveyed showed price declines and improved affordability during the last three months of 2007.
“Housing valuations are almost back to long-term norms,” said National City’s chief economist, Richard DeKaser. He called current affordability “the best in the past four years.”
But DeKaser cautioned that home prices could fall even further.
“This isn’t to say home price declines are over,” he said. “We could move below historic norms. By the end of 2008, housing markets could be broadly under valued.”
Prices still improving
There are still 21 housing markets, or 6% of those surveyed, that are severely over valued, including Atlantic City and Madera, Calif. That’s down from 56 overvalued markets at the peak of the housing bubble in 2006.
The report compares actual median home prices with what the authors determine are proper home values based on population density, relative income levels and interest rates, as well as historically observed market premiums or discounts, to determine whether markets are over or under valued.
The report also factors in market intangibles that make some areas more desirable places to live, and more expensive.
“Declines are no longer confined to once-frothy markets,” said DeKaser.
The survey covered home valuations during the last three months of 2007, but DeKaser pointed out there’s reason to believe that valuations are even more favorable for buyers today.
Price declines have continued into 2008 and interest rates, although they have inched up lately, have been steady or lower compared to late last year. There have even been wage gains; personal income rose 0.5% in December. Soaring foreclosure rates have added inventory to many housing markets, depressing home prices further.
The biggest gains in affordability occurred in California, Michigan and Florida, which are areas that have also been some of the hardest hit by foreclosures. Those states registered 43 of the 50 biggest price declines.
Bend, Ore. currently tops the overvaluation list. Home prices there were judged to be about 59% higher than their fair-market value. Miami, despite a median home price decline of 5.7% last year, is the most overvalued big city, by 44%.
All the best bargains were found in Louisiana and Texas. Houses in Houma, La. were under valued by 31.2%, according to the report. Dallas was the most undervalued big city, by 30%. 
Condo Superstars! Part 2.
With one exception, the Top 10 agents in generating the most Chicago condo transactions (units sold) in 2007 are also the Top 10 in dollar-transaction volume.
As he did on the list posted here last Monday, Equity Marketing’s Michael Holtorf led the powerful pack. As Equity’s controller, Michael was credited with combined sales transaction volume of $303 million.
The agent in the No. 10 position, MCL’s Iris Ade, earned credit for $47 million in sales. Iris, who oversees residential listings for MCL Companies, one of the city’s largest builders, is the only agent on the dollar-volume list not on the units-sold transaction list, likely indicating a higher median sales price for the units she did sell.
Our con(do)gratulations to them all!
Figures in the chart below are based on sales of city condos closed in 2007 on the Multiple Listing Service of Northern Illinois (MLSNI).
Agents, Highest Dollar Transaction Volume for Chicago Condos
| Rank |
Name |
Brokerage |
Volume (Millions) |
Transaction Rank |
| 1. |
Michael Holtorf |
Equity Marketing |
$303 |
1 |
| 2. |
Leila Zammatta |
Magellan |
272 |
2 |
| 3. |
Chris Feurer |
Koenig & Strey |
107 |
3 |
| 4. |
Jeff Lowe |
C21 Sussex & Reilly |
72 |
8 |
| 5. |
Matt Garrison |
Coldwell Banker |
66 |
4 |
| 6. |
Art Collazo |
Koenig & Strey |
57.4 |
5 |
| 7. |
Mario Greco |
Rubloff |
57 |
7 |
| 8. |
Scott Graden |
@properties |
52 |
6 |
| 9. |
Dana DiPasquale |
Baird & Warner |
49 |
10 |
| 10. |
Iris Ade |
MCL |
47 |
NA |
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Chicago’s Best Condo Blog
In Chicago, condos are king. They account for 64% of our city’s residential market, and $7 billion in annual sales. Whether you’re an owner or agent, a buyer, seller or construction worker, please join our conversation and community, and help create Chicago’s best condo blog. To contribute: At the bottom of any post, click Comments. Enjoy your visit. Come back, soon and often. And honor your friends by inviting them to join us. This blog is independent and ad-free.
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- Ric Cox
- Chicago, Illinois, United States
- As a nine-time condo buyer and an editor-turned-entrepreneur, my mission as founder of Condominium Enterprises is to make it fun–for everyone involved–to buy, own and sell condos.
View my complete profile
Market Year to Date: Jan-Feb/08 v. Jan-Feb/07, MLSNI
Active Listings: -1% (13,047)
New Listings: -12% (7,287)
Closed Listings: -24% (1,564)
Median Price: +12% ($313k)
Total $ Volume: -8% ($655m)
Avg. Mkt. Time: -1% (122 days)
Supply (Actives): +7% (9 mos.)
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Condo Superstars!
That’s what we’re calling Equity Marketing’s Michael Holtorf (left) and the other agents who made our Top 10 list for generating the most transactions of Chicago condos in 2007.
Before the drumroll, the list and the Oscars, some context: Behind each of these Superstars is a story, one, with their help, we will tell in future posts. Most of these names are familiar to us from previous years, so they are not one-year wonders.
Some of these Superstars were skilled enough, or lucky enough, or both, to serve as the exclusive marketing representative for a developer and thus received credit on the MLS for every unit sold in a building or buildings. Others almost certainly received credit for units their team members helped sell.
Neither group is comparable to the typical agent, who must recruit sellers and buyers, one by one. By next year, with your help, perhaps we will figure out a way to create a list that has the maximum meaning for the most people.
Whatever their secrets, these Condo Superstars moved mucho condos. For that, we offer each of them our con(do)gratulations.
Combined, these 10 agents participated in 2,640 transactions, 7% of the city’s total. For now, each of them can bask in unfootnoted glory. In future posts, we’ll drill down deeper into the numbers, and add the fascinating footnotes.
As always, our information is based on transactions of condos in the city that closed on the Multiple Listing Service of Northern Illinois (MLSNI).
Drumroll, please, and sound the trumpets!
Agents, Most Transactions* for Chicago Condos, 2007
| Rank |
Name |
Brokerage |
Transactions |
| 1. |
Michael Holtorf |
Equity Brokerage |
681 |
| 2. |
Leila Zammatta |
Magellan |
490 |
| 3. |
Chris Feurer |
Koenig & Strey |
323 |
| 4. |
Matt Garrison |
Coldwell Banker |
228 |
| 5. |
Art Collazo |
Koenig & Strey |
199 |
| 6. |
Scott Graden |
@properties |
178 |
| 7. |
Mario Greco |
Rubloff |
142 |
| 8. |
Jeffrey Lowe |
C21 Sussex & Reilly |
138 |
| 9. |
Joe Zimmerman |
@properties |
135 |
| 10. |
Dana DiPasquale |
Baird & Warner |
126 |
Monday’s Top 10: Agents With Most Dollar Volume
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