Home-sales activity has started to pick up this summer

Cyndy Hass, a realtor with RE/MAX Suburban's Arlington Heights office, is busy again. One recent weekend she booked eight appointments on listings she has in the $500,000 range.

"It was the biggest weekend that I had in over two years," she admitted.

And people aren't just looking. Hass said properties are starting to sell, as evidenced by the fact that RE/MAX Suburban's escrow deposits increased recently for the first time in a couple of years.

"I honestly believe that finally we are hitting bottom on this market," she said. "Offers are coming in and the phones are ringing again - ever since March."

Looking back, when did the problems in real estate begin?

"I sensed a change in the third quarter of 2006 when the number of relocations I was seeing dwindled and, as a result, the homes I had listed over $1 million were remaining on the market much longer than we expected."

And until this spring, people weren't willing to make major investment decisions or sign a contract for a new house until their current house sold, she said. "But now things are definitely loosening up."

What is selling in the Chicago market?

"The properties that I see moving are those that are prepared for sale and priced to compete, no matter whether they are single-family homes, townhouses or condominiums.

"The successful contracts being put together now involve homeowners who have educated themselves about what is going on in their neighborhood and where our prices are today."

It is also important for sellers to stage their home, update the kitchen and baths and make the decorating neutral if they want to stand apart from the many other homes on the market, Hass believes, because today's buyers don't want to spend the time and money on a lot of projects after they buy.

If you don't have the time or money to spend on improvements before you sell, Hass said that you should expect to take more of a discount on the property than you would have seen a few years ago.

"There are so many homes competing and people are purchasing the homes that offer them the most bang for their dollar."

People are looking at purchasing homes today as more of a business decision and less of an emotional one. If they have to make improvements after the purchase, they are taking into account not only the actual cost of labor and materials, but also the cost of their time to oversee the project.

How does the Chicago market differ from the national market?

Hass stopped at a Florida real estate office recently while visiting the state. It was a Tuesday night and she said the office was buzzing with people. When she asked about it, they said they had written 60 sales contracts that month.

"A year ago in the area we stay in Florida, there were lots of foreclosures on our block. This year they are all gone, so those properties are being sold.

"Up here in Chicago we are also seeing sales again, so the inventory of available homes everywhere is being reduced, but there is still a way to go before we start to see prices increase again."

What differences do you see between the city and suburban markets?

Both the city and the suburbs are governed by the law of supply and demand, so the properties with the right location and the right price are the ones that sell, Hass said.

The city market is primarily made up of condominiums, and quite a few condominiums will be completed soon, so competition for buyers will be fierce, she predicted.

Are first-time buyers taking advantage of the buyer's market?

"I am not seeing as many first-time buyers as I should be with the 3.5 percent FHA interest rates, low prices and the federal tax credit."

There is also an FHA203K renovation loan available, she said, which makes it possible for the buyer of a property to incorporate the cost of necessary renovations into their mortgage and get financing based on the value of the property after the renovations.

"This is the best time to buy in the last 20 years and there are only about 100 days left to take advantage of the $8,000 federal tax credit for first-time buyers and those (people) who haven't owned a home in three years.

"Now is the time to buy."

That is why RE/MAX Suburban if offering seminars for first-time buyers. To see a list of the dates and locations for these seminars, visit www.besthomesite.com.

What steps need to be taken by the state and federal government to strengthen the Chicago area real estate market?

"I would like to see them keep interest rates low and maybe even extend the $8,000 tax credit."