"You've Caught the NET!"

Entrepreneurs: Here's the next big construction craze in Illinois -

SMOKING HUTS - THAT'S RIGHT!

When Smoke-Free Legislation was enacted January 1st of this year across Chicago and throughout Illinois, smokers were forced outside, no matter the weather, to enjoy their cigarette breaks. 

The new law prohibits smoking within 15 feet of a building entrance or window that opens - so smokers have to "hit the huts."  Further, these huts have no doors - smoking is prohibited in any "enclosed area."

This one was recently installed at THK Corporation in suburban Schaumburg IL.  The photo was taken by Terry Harris for The Chicago Tribune, January 24, 2008.  It was published in The Tribune today.

There are no precise estimates for new orders of these smoking shelters since the Illinois smoking ban took effect, but several manufacturers, such as Tafco Corporation in Melrose Park IL and Duo Guard Industries in Canton MI, say business is soaring.

Many of these shelters provide space heat - but, as you may imagine, are used far less often in colder weather months in Illinois.  Chris Corrado, General Manager of the Pair A Dice Casino in East Peoria IL suggests, "clearly when conditions get to negative [degrees], let's face it, it can be challenging."

An incentive for smokers to quit perhaps?  Stay tuned!

Check our posting today at BlogChicagoHomes.com for more information, and links to today's Chicago Tribune article by Liam Ford.

DEAN & DEAN'S TEAM CHICAGO

Hey, everyone!

I live here in Chicago, and love living here.  But those of you from other places may look at this with your jaws wide open!

Are you a real estate developer, or perhaps an affluent individual, wanting to build a new home or condo project in many affluent Chicago Neighborhoods?   Plans call for a structure too large to be allowed under current zoning regulations?  What's the solution?

Pick up the phone, call your local Alderman - and file for a Zoning Variance!  Per long-standing practice here in Chicago, the City Council usually defers neighborhood up-zoning decisions to the alderman.  Hence, those well connected, it would seem, could have a better chance of constructing larger, previously-non-conforming structures in very attractive neighborhoods.

Many real estate investors and developers applaud the practice, saying it encourages investment and development in neighborhoods across the city.  The long-time Mayor of Chicago, Richard M. Daley, defends the practice, and opposes any zoning reform.

However, many long-term neighborhood residents vehemently oppose up-zoning - saying it radically changes the character of their own streets, and even cuts off sunlight to their homes.  Some call the current process a breeding ground for corruption - indeed, many alderman have been criticized here for accepting considerable campaign contributions from those desiring up-zoned parcels.

Take a look at our posting today on our Team Blog Center - BlogChicagoHomes.com.   Also read the continuing story in The Chicago Tribune, today highlighting Mayor Daley's reaction, for further detail, a database of recent zoning changes in residential neighborhoods across the city, photo galleries, and related video.

Chicago is a big, beautiful city - robust, and growing.  Our Team members, and my wife and I, have lived here our whole lives.    We invest in real estate here, and real estate developments, on a regular basis, in diverse Chicago Neighborhoods.

In 2008, however, some things make this Chicagoan wonder, if perhaps some act like it's still 1928!

Would love your own thoughts, especially those of you from out-of-town.

DEAN & DEAN'S TEAM CHICAGO

Back a couple of years ago, when the market was roaring, seemingly without end, here in Chicago and in other parts of the country, many appraisers may have felt some pressure to increase their appraised values - sometimes substantially - to make sure the loan went through.  One such appraiser in California, Jennifer Wertz, refused - and has now filed a lawsuit against one of the country's largest mortgage lenders, Washington Mutual. 

Last May, when Wertz was completing one appraisal, she was asked by her manager to change her opinion on the market stability for the neighborhood in which the subject property was from "declining" to "stable."  She disagreed, providing basis for her opinion.  When she refused to change the appraisal, she became effectively blacklisted by her employer from doing appraisals for WaMu loans.

In blogs and online forums across the country, many other appraisers are echoing Wertz's sentiments.  Bakersfield CA appraiser Gary T. Crabtree identifies inflated appraised values as a "significant contributing factor" in many cases involving mortgage fraud, short sale, and foreclosure. 

Here in Chicago, I have heard one end of irate phone conversations from other Realtors with banks, and some appraisers, upset that their loans did not appraise at the purchase price.  We have all heard stories of real estate agents attempting to manipulate current list price to get a property to appraise at an over-market value - in some cases, with cash back going to the buyer.  Others provide comps to appraisers they meet for a property appraisal, to substantiate the contract sales price.

Legislation currently being considered in Congress would considerably increase penalties for intereferance with an appraisal, or for anyone who offers inducements or punishments to appraisers for not stating a particular value and market conditions.

Any of this going on where you are?  Are the times changing?

See our post today at BlogChicagoHomes.com for more detail, as well as a link to an article by Chicago Tribune Reporter Kenneth R. Harney in yesterday's paper.

DEAN & DEAN'S TEAM CHICAGO

Welcome to the Working Week, Everyone -

Here are updated Chicago Real Estate Market Stats for the week ending January 27, 2008.  In summary, fewer new listings than I would anticipate for this time of the year, sluggish pending sale figures, and continued high time on market.

Absorption Rate here on the North Side of Chicago now approaches, in aggregate, 35 months, and probablity of sale within 180 days marketing time frame - just better than 1 in 4!

Communities and clients we serve reside, or plan to reside, in the Chicago Neighborhoods of The Chicago Loop, The Gold Coast, River North, Lincoln Park, Lakeview, Uptown, Edgewater, North Center, Lincoln Square, Albany Park, Ravenswood, Wicker Park, and Bucktown. 

Also, these Great Chicago Neighborhoods: Logan Square, Rogers Park , West Ridge, Portage Park, Jefferson Park, Norwood Park, Sauganash, Edgebrook, and Edison Park.   Plus All Chicago Suburbs. 

SINGLE FAMILY, CONDOS, AND SMALL MULTI-UNIT PROPERTIES - NORTH SIDE OF CHICAGO, NORTH OF ADDISON STREET, WEST OF ASHLAND AVENUE

                             ACTV LISTINGS        JUST SOLD         CLOSED        EXPIRED

w/e January 27th              4,306                  36                   35                40

w/e January 20th              4,200                  45                   38                70

% CHANGE                         +2.5%              -20.0%          -7.9%         -42.9%

CLOSED PROPERTIES DATA

                              AVG SALE PRICE     AVG DAYS ON MKT     TOTAL VOLUME   

w/e January 27th          $317,766                 188 DAYS                  $11,121,833

w/e January 20th          $352,377                 134 DAYS                  $13,390,350

% CHANGE                        -9.8%                   +40.3%                          -16.9%

THEORETICAL TIME TO CLEAR EXISTING INVENTORY (ABSORPTION RATE) -

     LAST 12 MOS - 11.51      LAST 6 MOS - 19.43     LAST 3 MOS - 34.71

PERCENT OF HOMES SELLING IN 180 DAYS -  25.40% (UNSOLD - 74.60%)

SOURCE:  MLSNI, AREA MARKET SURVEY DATA

Write or call with any questions!  And - send your buyers and investors to Chicago (listing referrals welcome, too, of course - we'll just have to work even harder and stronger for these sellers)!

DEAN & DEAN'S TEAM CHICAGO

Happy Sunday, Gang!

Over the years I have been selling residential real estate here in Chicago, I have found one routine that ultimately makes me more money than anything else.  The routine -

CONSISTENT TELEPHONE FOLLOW-UP!

I provide quick news to my clients on market trends here on the North Side of Chicago, check in on the family, and remind them if they need our Team's help, or if they know anyone who does, to call me, or have those they know contact me.  Rather soft sell - they know we're always there for them, and, predictably, they call me back when they need our help. 

Each business day, I call between 12-15 Valued Clients (never say "Past" clients - because "Valued" Clients will always be with you!)  Plus, any FSBO's or Expired Listings we might be able to help.

Within the last few weeks, however, since the beginning of the year, the tone of the responses I get has changed - rather negatively, and the aggregated comments cause me concern.

My clients say things like, "The Real Estate Market Really Sucks, huh?"  Or, "I don't see how you folks are surviving in today's real estate business."  Or, "have you thought about teaching or training - nobody is buying or selling real estate these days, right?"

Of course, we need to take these shoot-from-the-hip comments with a grain of salt - after all, we know what the media has been reporting since the sub-prime crisis began last year, and, even before that, when the Real Estate Market here in Chicago and across the U.S. transitioned from a Seller's Paradise to, perhaps, a Buyer's Playground.

But we know - perception often creates reality, and we Real Estate Practitioners will either fail, survive, or flourish based on how we respond to these perceptions.

In a nutshell, here is a Status Report on Today's Real Estate Market here in Chicago and the suburbs -

"You'll sell for less than you thought you would, and

You'll get more for your money when you buy (assuming you've got good financial credentials), and

Five years from now, you'll thank me profusely for my advice - assuming you FOLLOW it!"

Let's take a look at the situation today from two points of view - prospective sellers, and prospective buyers.

From the tone of recent conversations - some PROSPECTIVE SELLERS are throwing in the towel!  Gone are the days when they say, "my buddy down the street got SO MUCH for their home."  It is now replaced by, "We're going to hunker down and stay put until the market gets better (i.e. - the way it was a couple of years ago)."

Forget the fact their family is growing, and their current place is too small.  Let's talk in the spring, or next year - the market is bound to get better - right?  Fact is, if they would have taken that tone one year ago, in early 2007, here in Chicago, their sale price would have been between three and nine percent this year, in 2008, depending on the neighborhood in which they live - and the trend is likely to continue for a while, according to local and regional "experts."

Many sellers don't look at it from THIS ANGLE - when real estate supply and demand do approach balanced inventory levels,  the houses they are looking to buy now - which can be had for considerably reduced prices - will INCREASE as well!  Most don't see this - they think when THEIR CURRENT HOUSE increases in price, the new house they are considering to buy will magically stay price unchanged!

The equity build, for the new house and new neighborhood they are considering, could be rapid in a couple of years - and they will be missing out on that.

Therefore, they are not losing, net-net, nearly as much as they think!  We have to get past human nature, however - for many, it is a big EGO BLOW to realize your current house is not worth nearly as much as you thought it would be.

Let's take a look at the perspective of PROSPECTIVE BUYERS.  Here's where it gets a bit crazy!

Mortgage interest rates are low - down considerably from last year (see my recent AR post, as well as one on our Dean's Team Blog Center - BlogChicagoHomes.com).  However, fewer people can qualify at these best advertised rates, because of far-more-stringent underwriting standards.  The two-year-old mentality among some potential buyers of high-leverage, low-down loans cannot be in reach for many with slightly-imperfect credit credentials - so they are forced to pay higher rates when they borrow for their new place.

The not-too-old trick of tapping home equity in the form of a Home Equity Line of Credit (HELOC) to buy a new home won't work anymore around here in Chicago,  and in many other places - equity has eroded, and a quick market time to sell your old place virtually non existent, without an aggressive price.

Couple with this the growing buyer belief that they can get ANY house at a deep discount, then BEAT THE SELLER'S DOWN during the inspection period with repair requests and credits, and any purchase negotiation that ends in something other than a "fire sale" price often leaves doubt and remorse in the mind of the buyer!

And - many buyers, reading the Wall Street Journal on occasion, feel the market has yet to hit bottom!  Wait a little more, and prices will go down even further!  DON'T BUY NOW - WAIT, WAIT, WAIT!

If they wait too long, however, there will be no guarantee that these perceived "bargains" will be around as real estate inventory starts to balance and prices start to again rise - perhaps quickly, and without notice, in the most desirable areas.

To be successful this year, folks, we can't ignore seller and buyer's perceptions!   Those in our business who will be most successful will focus on seller's LIFESTYLE MOTIVATIONS for the move they are considering, stress the LONG-TERM BENEFITS of not putting their dreams and plans on hold - and reminding these skittish clients that the End of the World is still a long way off!

I would love to know what you think!

DEAN & DEAN'S TEAM CHICAGO

Oh boy, my clients here in Chicago and the suburbs are reading the papers and surfing the web again!

They remind me 30-Year Fixed Mortgage Rates have dropped - in some cases as low as 5 5/8%, for purchases and re-fi's.  With they buyer's market here in Chicago, some want to run right out, pick up a steal of a home, finance it cheaply - and perhaps resell it in a year or two for big money appreciation and profit.

Others simply want to refinance their current adjustable rate home loans, taken our a couple of years ago when they purchased with low or no money down, before their current rates begin the reset cycle later this year.

Many lenders are saying "no" to both groups - as underwriting standards have tightened considerably, as we all know.  Until legislation changes things, the jumbo loan threshold still stands at a modest $417,000, or higher-than-advertised rates apply.  With new Fannie Mae and Freddie Mac guidelines, scheduled to take effect in March, those with previously-acceptable FICO credit scores in the 600-680 range are being hit with additional fees or rate surcharges.

And those with low equity in their current or proposed home, or those require a "stated" or "no doc" loan (many Realtors, perhaps) are finding considerable barriers to the best rates.

Of course, those to feel the biggest crunch are those whose rates will reset to substantially higher amounts - bumping their monthly payments up, in some cases, by $100 monthly, or more!   In many Chicago Neighborhoods, selling quickly, even at break-even, it not an option for those finding themselves highly-leveraged, and the re-fi option is just not available to many.

It appears you do need good financial credentials, and some money toward equity, to take advantage of the current situation - yes?

See our posting in our Dean's Team Blog Center - BlogChicagoHomes.com, for more info as well as a link to Michael Oneal and Mary Umberger's article in today's Chicago Tribune.

DEAN & DEAN'S TEAM CHICAGO

The U.S. Housing Market news continues to be dower from Wall Street - 2007 units resold down 13%, median sale price down 1.8 percent nationally last year.

Things slowed down in Chicago as well in 2007, but median prices actually INCREASED in the single family home and condo sectors.

A few summary statistics -

A total of 5,046 properties were sold in the North and Northwest Side Chicago Neighborhoods we predominantly serve in 2007 - a decrease of 19.2% versus 2006 resale figures.

The median sales price for Single Family Homes sold and closed last year in these same areas - $477,595.  This represents an INCREASE of 2.1% from prior-year levels.

The median condo price for 2007, same Chicago Neighborhoods, was $256,078 - up 4.0 percent from 2006.

The median price for two-to-four-unit apartment buildings, same neighborhoods, actually DECREASED last year by 5.3%, to $507,316.

For the last three months of 2007, the aggregate Absorption Rate in our Chicago North and Northwest Side Neighborhoods was a staggering 32.2 months.  Slightly fewer than 31.5% of residential properties listed in the areas we serve sell within a six-month listing and marketing time frame.

Check out our Blog Center - BlogChicagoHomes.com - for more information and relevant links.

Don't just "fasten your seat belts" for 2008, folks.  Get out there and help these fine prospective clients this year - buyers and sellers!

Take Care, and Keep Warm!

DEAN & DEAN'S TEAM CHICAGO

MORE ON THE CHICAGO IL REAL ESTATE MARKET, AND OTHER THINGS CHICAGO, FROM THE POINT OF VIEW OF A LITTLE WHITE DOG!

A hearty growl to everyone, from the Frozen Tundra - 3 below zero - on the North Side of Chicago!

You did know I'm a Cub fan, didn't you?  Sad, but true!  They say it's genetic - my human dad - Dean's Team Leader Dean Moss - is a Cub fan, big time!  Season ticket holder - which explains why is often so forlorn!

But this crazy talk out of Wrigley Field - it's making the little white hair on the top of my head stand straight up!

First, the Tribune Company, current owners of the Cubs and Wrigley Field, want to sell Naming Rights to this, one of the most storied ballparks in the country, if not the world.  Might as well sponsor Notre Dame Cathedral in Paris!

Then came Dean's annual Cubs Season Ticket Bill - up 28% this year, for a baseball team that hasn't won the World Series since before radio was invented - 1908 - 100 very, very, very long years (that's 700 dog-years, folks!)

Now, someone wants to build a fancy schmancy nine-story Hyatt Hotel, with accommodations for 135 guests, plus a separate rental building with roughly 150 apartments, 100,000 square feet of retail space, plus parking for 500 cars - right across from Wrigley Field!  Within spitting distance, even!

The developer, Steven Schultz, owns the land, currently home of such neighborhood institutions as The Salt & Pepper Diner, and The Goose Island Brewery.  He is working out a plan to re-develop it, seeking the blessing of community residents and Chicago Alderman Tom Tunney. 

Although some feel the project would lead to unbearable congestion, others applaud it, saying it would add even more livenliness to one of the most vibrant neighborhoods on the North Side of Chicago.  It would also provide a much-needed supermarket, and a rarity here - available parking.   Existing businesses in the affected building would be re-established in the new campus when construction is complete.

My human daddy, Dean, was one of those who protested the installation of lights for night baseball here 20 years ago (absolutely true!), but all of these new developments are driving us "Baseball Purists" crazy.

What happened to the days when you could grab a ballgame, in an intimate, in-city park, and you didn't have to take out a second mortgage or a secured line of credit in order to buy the pups a foam finger and a couple of cold pieces of pizza?  Long gone, I guess!

For more information, as well as cool video and the full story in yesterday's Chicago Tribune, click your right front paw on the Dean's Team Blog Center - BlogChicagoHomes.com - for today's post.

Progress - whoa!   Or, at least, stay the heck away from this section of Chicago's Lakeview Neighborhood - at the corner of Addison and Clark Streets.

YOUR ACE REPORTER ON FOUR PAWS,

BUDDY HOLLY MOSS & DEAN'S TEAM CHICAGO

Hey, gang -

I'm not big on talking politics on a public forum like AR - but my frustration level is getting pretty high.  Tell me I'm not crazy, or tell me if I am!

Congress and The President are tying the ribbons on a $150 Billion Economic Stimulus Package hoping to revive the economy, big time, quickly.  Will it help, or has the horse already left the barn, and has the level of fear in this election year become too much to bear for these Washington politicians?

First, check out the full story in today's Wall Street Journal here.

Three of the key provisions -

1.  Sizable Tax Rebate Checks, of between $300 and $1,200, depending on taxable income, marital status, and number of kids, to be sent to most taxpayers in May.  (Here in Chicago, when people get money in advance of an election, some fat guys chomping cigars usually get indicted!)

2.  A temporary increase in the guaranteed loan amounts Fannie Mae and Freddie Mac can purchase, ostensibly increasing the Jumbo Loan Threshold from the current $417,000 level to as high as $730,000 in the most affluent housing markets.

3.  An increase in business deductions up to 50% for some capital expenditures.  Small business people, like, say, us Realtors, might be able to enjoy an increased expense deduction limitation - up to as much as $250,000, from the current limit of $125,000.

Now, it's not a done deal yet.  Although these measures are expected to pass the House without the usual committee wrangling, the Senate has yet to completely weigh in.  Some say provisions extending unemployment benefits, increasing road repair budgets, and building public assistance programs such as Medicaid and food stamp programs will be points of debate in the Senate.

But, if passed - will all this really help - or is it just a band-aid?

Will the moderate tax rebates encourage thrift, or help all distressed consumers pay down their nearing-default home mortgages, or will it just give them a reason to buy that new 62" flat-screen HDTV, for twice the rebate amount, putting the difference on a credit card?

Will the increase in the Jumbo Loan Limit really help those who cannot afford a mortgage rate reset on that high-leverage, interest-only, adjustable rate loan, the one that, perhaps, they never should have gotten a couple of years ago?

As a small business man, I am all for increasing tax deductions on business expenses - but I get the feeling detailed rules may heavily restrict new, meaningful deductions us "little guys" will actually be able to enjoy.  Further, I'm curious - what percentage of small business people actually spend $250,000 on annual expense items, and, for those that want to try - might this merely involve more credit taken on by many of us?

So, again, folks - is this all a real solution, or a booster-chair designed to help one political party or another win certain elections this November?

Really, everyone - ask anyone - I am just a nice guy from the North Side of Chicago!  I'm not a crazy zealot.  But - geez - I'M SO CONFUSED!

Are you?

DEAN & DEAN'S TEAM CHICAGO

A Giant Sinkhole, filled with 8-foot sections of Chicago City Sidewalk, complete with parking meters, street signs, and street light poles, and a rushing, river-like torrent of water - all in the middle of a major North Side Chicago street.  Very surreal - but very real.  Occurring without warning!

About 1:30 on Tuesday Morning, January 22nd, a 36-inch water main burst beneath Montrose Avenue, at Honore Street, in the East Ravenswood Neighborhood of Chicago, roughly 3/4 mile from our Keller Williams office in Lincoln Square. 

Luckily, no one was hurt, although several basements were flooded and businesses disrupted on both sides of this busy neighborhood artery.  Riders on the platform of the nearby Montrose Station of the Brown Line L watched with amazement as the main was capped and repair work begun early during the morning commute on Tuesday.  Incredibly, water service in the area was not disrupted, as city water service is arranged in a grid pattern, and other water supply mains in the area still functioned normally.

Although the specific point of the breach has not yet been determined, early indications point to a failure in the nearly 100-year-old cast-iron water supply pipe that runs beneath Montrose.  A similar failure occurred in Summer, 2007, on the South Side of Chicago.

City officials estimate that nearly 20% of the 4,300 miles of water main pipes that run beneath Chicago streets are in need of prompt replacement.  Newer iron alloys are far more resistant to the city's seasonal extreme temperatures.   Chicago replaces these aging pipes at the rate of about 40 miles each year.

Often times, seeping or bubbling water in nearby alleys or parkways provides some warning of an impending main breach.  No such warning here!

Much has been written about the problems of older, apparently-ready-to-fail city infrastructure in major Eastern Cities - Boston, New York, Philadelphia.  But the problem also exists here in Chicago as well, as we are sure it exists in older cities and older structures across the U.S.

Please check out our posting today on our Team Blog Center - BlogChicagoHomes.com.  For more on this story, including photo galleries of repair work in progress and relevant videos, check out today's story in The Chicago Tribune.

DEAN & DEAN'S TEAM CHICAGO