Well, when you add it all up, there is a consensus that the US housing market will see some meaningful growth in 2012.  If you have sat on the sidelines waiting for bottom of the housing market, experts are saying that we have already hit it and that the housing amrket should see positive growth in the future.  You always have to make sure that you are choosing the right time to buy a home ensuring that you are comfortable with your current income, assets and the amount of debt you will be undertaking.  But if everything is a GO and you are just waiting for the right time to enter the market, this could be IT!!

Lawrence Yun, chief economist of NAR, projected the gross domestic product growth to be 1.8 percent for 2011, and believes this number will rise to 2.2 percent in 2012.  He also foresees the unemployment rate declining to 8.7 percent by the second half of 2012.

“Tight mortgage credit conditions have been holding back homebuyers all year, and consumer confidence has been shaky recently,” Yun said at the conference, reported on HousingWire.com.  “Nonetheless, there is a sizable pent-up demand based on population growth, employment levels and a doubling-up phenomenon that can’t continue indefinitely.”  Yun also believes that by the middle of 2012, mortgage interest rates would rise to 4.5 percent.

Updates from the NAR conference predict that new-home sales in 2012 will rise by about 23 percent to 372,000 – a sizeable increase from the record low of 302,000 in 2011.  Housing starts are predicted to rise nearly 8 percent to 630,000 – a rise from 583,000 starts in 2011.

“Very favorable affordability conditions will dominate next year as well, which will probably by the second best year on record dating back to 1970,” Yun said.  “Our hope is that credit restricitons will ease and allow more homebuyers to take advantage of current opportunities.”

To exemplify this fact:  My company, ReMax Elite, listed a beautiful home in Clarendon Hills in the morning and I sold it that afternoon to a city couple looking to move to the suburbs.  They had been out with me a few times prior and liked the homes I showed them but this one had everything they were looking for.

So, if you are contemplating selling, now is the time, as there is pent-up buyer demand.  Take advantage of that fact now.

Call us today at 630-325-5555  to assess the saleabilityof your home.

http://www.hinsdale-homes.com/chicago-area-real-estate/chicago-real-estate-areas.asp

For more information, please call us at 630-325-5555

As the holidays approach, the giant Asian factories are kicking into high gear to provide Americans with monstrous piles of cheaply produced goods — merchandise that has been produced at the expense of American labor. This year will be different. This year Americans will give the gift of genuine concern for other Americans. There is no longer an excuse that, at gift giving time, nothing can be found that is produced by American hands. Yes there is!

It’s time to think outside the box, people. Who says a gift needs to fit in a shirt box, wrapped in Chinese produced wrapping paper?
Everyone — yes EVERYONE gets their hair cut. How about gift certificates from your local American hair salon or barber?

Gym membership? It’s appropriate for all ages who are thinking about some health improvement.

Who wouldn’t appreciate getting their car detailed? Small, American owned detail shops and car washes would love to sell you a gift certificate or a book of gift certificates.

Are you one of those extravagant givers who think nothing of plonking down the Benjamins on a Chinese made flat-screen? Perhaps that grateful gift receiver would like his driveway sealed, or lawn mowed for the summer, or driveway plowed all winter, or games at the local golf course.

There are a bazillion owner-run restaurants — all offering gift certificates. And, if your intended isn’t the fancy eatery sort, what about a half dozen breakfasts at the local breakfast joint. Remember, folks this isn’t about big National chains — this is about supporting your home town Americans with their financial lives on the line to keep their doors open.

How many people couldn’t use an oil change for their car, truck or motorcycle, done at a shop run by the American working guy?

Thinking about a heartfelt gift for mom? Mom would LOVE the services of a local cleaning lady for a day.

My computer could use a tune-up, and I KNOW I can find some young guy who is struggling to get his repair business up and running.

OK, you were looking for something more personal. Local crafts people spin their own wool and knit them into scarves. They make jewelry, and pottery and beautiful wooden boxes.

Plan your holiday outings at local, owner operated restaurants and leave your server a nice tip. And, how about going out to see a play or ballet at your hometown theatre.

Musicians need love too, so find a venue showcasing local bands.

Honestly, people, do you REALLY need to buy another ten thousand Chinese lights for the house? When you buy a five dollar string of light, about fifty cents stays in the community. If you have those kinds of bucks to burn, leave the mailman, trash guy or babysitter a nice BIG tip.

You see, Christmas is no longer about draining American pockets so that China can build another glittering city. Christmas is now about caring about US, encouraging American small businesses to keep plugging away to follow their dreams. And, when we care about other Americans, we care about our communities, and the benefits come back to us in ways we couldn’t imagine. THIS is the new American Christmas tradition.
Forward this to everyone on your mailing list — post it to discussion groups — throw up a post on Craigslist in the Rants and Raves section in your city — send it to the editor of your local paper and radio stations, and TV news departments. This is a revolution of caring about each other, and isn’t that what Christmas is about?

By:  Bill Styczynski of Styczynski, Walker & Associates

I started my firm back in 1980, when mortgage rates were in the double digits and architects weren’t hiring. I was young, enthusiastic and ready to conquer the world. My story is probably similar to principals of other small, residential architectural firms.

I started a firm focused on energy-efficient solar design. As interest in solar work faded, our work became more conventional and had steadily grown in size and reputation. I enjoyed my work, our office staff and clients. I felt I would gradually reduce my role in the firm as I reached retirement age, although I always insisted I would work until I was 80 as long as I still enjoyed it.

In 2007, Styczynski Walker & Associates, our architectural firm, was starting to feel a slowdown. We felt the firm was well poised to survive a slowdown with a diversified mix of clients and projects, including custom single-family homes, additions, renovations, commercial projects and a design/build program which was just starting to gain traction. Having survived multiple recessions starting from the early ’80s, we were prepared for a slowdown but never expected the drop off the cliff we were about to experience.

At the time, we had 10 to 12 employees, a nice 3,600-sq.-ft. office in Chicago’s western suburbs, and a track record of steady growth over almost 30 years. Personally, I had learned to delegate responsibility, allowed several staff architects to control their own projects, developed numerous quality control systems and worked at broadening our client base. The most ambitious project was to build a home for my family that was also part of a luxury home tour and would be utilized to promote our design/build capabilities.

Recession After Effects

As many in the industry know, the collapse of the housing and financial markets devastated the residential market. As it all unfolded, I felt I was in an uncontrollable free fall. By the time things bottomed out, we were at about 20 percent of the income levels we had before the crash. Privately funded projects disappeared, accounts receivable became uncollectable, we couldn’t afford to pay the office rent, and I had to lay off much of my staff for the first time. I have always thought of my office staff as family and I can vividly recall many sleepless nights, staring out in the darkness trying to figure out what to do.

I made many mistakes — using all of my retirement money to help fund the firm and keep the office operational. The emotional attachment to the firm clouded my business judgment. The best advice I was given after the fact was whatever happened in the past was history and I needed to look forward toward the future.

By June of 2009, I had reduced our staff to four individuals in addition to myself. Everyone agreed to work reduced hours and agreed it was better than being unemployed. We set up an office in my home, utilizing a garage area where I used to keep a couple race cars. My hobby and passion for racing cars was put on hold. My wife returned to work to help make ends meet, and her long-arm quilting room was converted to our conference room. Our home now felt more like a bed and breakfast than a private residence, but again, my staff was like family and we needed to cut costs and adapt to survive.

Focus on Positivity

The market had definitely changed. It felt as if our architectural services had become a commodity. Fees were severely undercut; we took on a multitude of smaller projects to survive and were fortunate to have a few new homes, additions and commercial projects. During the lulls, we used the time to develop new marketing materials and looked at new ways to gain enough market share to meet our financial goals. Although to be honest, budgets and the business plan had to be adjusted on a monthly basis. At times I felt I should just shut down the firm and drive a bus for a living.

So where are we now? Quite honestly, we are still experiencing a roller coaster ride of projects and emotions. Although it doesn’t always show, I am an extremely optimistic person with plenty of drive. There are still projects out there and we spend more time than ever to obtain a signed contract. At times I feel we are only one significant project away from turning the corner, only to have the rug pulled from under our feet.

Our plan for the future is to stay in our current location for at least another year, maybe two. Moving forward, it is important to keep our expenses as lean as possible, stay flexible, respond to changes in the market and be diversified. I also feel that open communication with my staff has helped them understand the challenges we all face.

Where will we be five or 10 years from now? My guess is we will be back in a real office, with a staff of no more than eight, probably doing more design/build work, but with a clear memory of this humbling experience. I do know that whatever form the firm does take, it will be based on our care and dedication to our clients and employees, a commitment to quality services, and the flexibility to change and reinvent ourselves as the world around us changes.

A. William Styczynski is president of Styczynski Walker & Associates, an architectural firm specializing in custom residential design and small- to medium-size commercial projects. A licensed architect with a bachelor of architecture degree from the University of Illinois-Chicago, Styczynski has more than 32 years’ experience in the architectural field. He is NCARB certified and a Certified Green Building Professional. The firm has won numerous design awards including five prestigious Crystal Key Awards from the Home Builders Association of Greater Chicago. Contact Styczynski by sending an email to editor@rdbmagazine.com.

http://www.rdbmagazine.com/print/Residential-Design-and-Build/How-I-Survived-the-Housing-Slowdown/1$5154

Lots of cars!!??  This one has a “4″ car garage.

In-town, private cul de sac location on double lot = 145 x 126.

Important Info on Home Sale Profits:

The 3.8% Medicare surtax won’t apply to all home sale profits after 2012.  Many readers tell us they’ve received e-mails or read newspaper articles asserting that gains on all homes sales will be hit by a 3.8% tax.  That is incorrect. 

Most gains on sales of primary residences will be exempt.  Only the portion of profits that exceeds the $250,000 or $500,000 exclusion will be subject to the tax.  And only higher incomers will owe the surtax…singles with adjusted gross incomes over $200,000 or joint filers with AGIs above $250,000.  The 3.8% surtax is levied on the smaller of the filer’s net investment income (including taxable capital gains) or the excess of the taxpayer’s adjusted gross income over the threshold amounts. 

But profits on sales of rental properties and second homes will be hit by the surtax, assuming that the seller’s adjusted gross income is large enough.