"You've Caught the NET!"

How's the traffic in the parking lot at the mall, folks?  I don't know, because Sue and I are staying the heck away today.  Good luck, however, if you're among the huddled masses at the big-box stores this afternoon!

Here's this week's Chicago Neighborhood Update from our Team Member, Jennifer Arcand.  This week, she's focusing on the Chicago Neighborhoods of Lakeview, The South Loop, Lincoln Park, and Edison Park, and the Chicago Suburb of Naperville IL.

LAKEVIEW

The Gap is opening a handful of Chicago-area stores on Thanksgiving Day to get a head start on the traditional post-Thanksgiving Holiday shopping kick-off.

This will be the first time Chicago shoppers will find a Gap open before they sit down to Turkey dinner.   It will certainly be a benefit to be able to try on a new pair of jeans, before your Thanksgiving feast begins.

The Gap flagship store downtown on North Michigan Ave. will be open from 11 a.m. to 5 p.m.  Three other stores will be open from noon to 5 p.m. at North Sheffield in Lincoln Park, at Broadway and Belmont in Lakeview and in suburban Naperville, and will have 35 stores open nationwide on Thanksgiving, mostly in Chicago, San Francisco and Los Angeles.

Click here to learn more.

THE SOUTH LOOP

Former President Franklin Roosevelt had Warm Springs, while John F. Kennedy headed off to Hyannisport, and George W. Bush can be found on the ranch in Crawford, Texas.

Historically Presidents frequent set vacation destinations away from the White House.  Barack Obama has suggested that his family getaway could be right here in the Kenwood neighborhood, where he owns a home bought in 2005 for $1.65 million.

During a brief visit to Manny's, the now-nationally-famous South Loop deli the other day, the president-elect shook hands with diners and told one of them he isn't planning to put the house on the market when he heads to Washington in January.

Click here to read the entire article.

LINCOLN PARK

A sacred relic of an Italian-American nun who helped the poor and sick in Chicago was moved Sunday to a new temporary home in a Little Village church.

Parishioners at the Shrine of Our Lady of Pompeii welcomed the relic, a bone of Mother Frances Xavier Cabrini.  She was the first American to be canonized by the Roman Catholic Church.  

"She is one of us," said Bishop Raymond Goedert during the services. "Every piece of Chicago was blessed by her presence.  Chicago is where she lived and died."

Mother Cabrini founded many hospitals, schools and orphanages throughout the country.  In Chicago, she founded the now-shuttered Columbus Hospital in Lincoln Park.  The Cabrini-Green public-housing complex was named in her honor.

Click here for additional information.

EDISON PARK

With its membership numbers fading, Norwood Park American Legion Post 740 started a merger this fall into Edison Park Post 541.

The Norwood Park Post once had its own building.  Subsequently they have leased a space, and later met at the Norwood Park Field House.  After a while, the members were just meeting at individual residences.  Now they are signing up at Post 541.

Former Norwood Park Post Commander Lucille Janssens, who served in the United States Marines during World War II and is 89, is being provided with transportation back and forth to meetings.

Many Norwood Park post members are also veterans of World War II and are into their 80s. There are still others who served during more recent conflicts, including the Korean War, the Vietnam War, the 1990-91 Gulf War, and the current conflicts in Iraq and Afghanistan.

To find out more, click here.

NAPERVILLE

Tommy Nevin's Pub will be serving up a traditional Thanksgiving dinner with all the trimmings to area residents who would not otherwise be able to enjoy the holiday this Thanksgiving.

Food has been donated by Sysco Food Service.  The dinner includes turkey, potatoes, stuffing and pumpkin pie. Marcus Mooney, corporate chef at the pub, said the restaurant has enough food to feed 300 to 400 people.  

The meal will be served from 11 a.m. to 2 p.m. Thursday at the restaurant, 3032 English Rows, in Naperville.

"We are trying to help the less fortunate in the area," Mooney said. "We are looking to get the word out to bring people in who need to have a warm lunch."

For more information, click here.

Have a Chicago Neighborhood Holiday Event you would like us to help publicize for you?  Please, drop us a line!  Give us about a day or two to post it to our blog, and make sure you provide a contact phone number to reach you back in case we have any questions.

Here's a link to our Chicago Neighborhood News Blog Archive.

Enjoy the rest of the weekend, everyone!

CHARGE it . . . but do so RESPONSIBLY!

JENNIFER ARCAND & DEAN'S TEAM CHICAGO

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

Good Morning, you dogs!  One of my invited humans snapped this photo of me last night after Thanksgiving dinner.

I ate the usual -Turkey and gravy.  Sweet potato casserole.  Creamed spinach.  A couple of pieces of homemade pumpkin pie (thanks, Grandma Elaine!)  Didn't realize it would make me so tired!

Do you know what today is?  Of course you do it's

BLACK FRIDAY!

You know, that's the day all those crazy humans, predominantly females, rush the Walmart's, Kohl's, and Best Buy's of this world looking for that CHRISTMAS GIFT BARGAIN OF THE CENTURY!

I wanted to take a break between stores to quickly post my weekly blog.

BTW . . . want a good overview of what's on sale today, including the Door Buster Savings only available for another hour or two this morning?  Check out BlackFridayAds.com, and you'll get the lowdown on most of the big, national chains.

Sales are predicted to be scaled back quite a bit this year.  As you know, in researching these blog posts, me and my Cub Reporter, Gracie Moss, scan the business pages in great depth.  It's a tough economy this year for humans, here in Chicago, and elsewhere.  Job layoffs, tight credit, declining investments and home equity. 

For me, I'm glad I'm just a Little White Dog - I don't have to worry so much about all that stuff - as long as there is enough money left over for Meaty Bones at the end of the day!

But what are many folks buying this year?  Believe it or not, still - wide-screen HDTV's!

Prices are falling on most models, and everyone is getting ready for the big Analog to Digital Conversion next February 17th.  According to PriceScan, an Internet price comparison service, prices on popular 32" and 37" LCD HDTV models fell 2% last September, plus another 5% in October.

Today, on Black Friday, some 32" models will sell for $399 in early-bird savings at several of the big-box stores.  Riddhi Patel, an analyst with iSupply, a Market Research firm, predicts similarly-low pricing is likely to continue deep into the Holiday shopping season, and possibly into early next year.

It's a slowing economy, of course, that is slowing sales for new, high-end TV's.  This year, however, many manufacturers ramped up production commitments several months ago, on projections of strong fourth quarter sales.  This time in 2007, many HDTV brands were in short supply, due to a shortage of HDTV components.

With supplies now higher, in combination with lower demand because of the economy, many TV makers will be forced to discount extensively to move surplus inventory.

Of course, there are dozens of deals to be had today - on clothing, on toys, on jewelry, and on, and on.  But for me, you dogs, I'm lobbying my humans Dean and Sue for a new, kick-butt TV.  That's why I'm out early so I can help Dean pick the best model.

I'm a big Chicago Bears fan, you know, and I want to see all the minute details on the screen as the Bears battle the Minnesota Vikings this Sunday night! 

"Who Let The Dogs Out?" - oops, wrong NFL Team!

Shop wisely - and safely!

See my post today @ BlogChicagoHomes.com.  You'll find a link discussing how the market for high-tech HDTV's is changing to benefit the consumer, from Christopher Lawton's post in yesterday's Wall Street Journal.

YOUR ACE REPORTER ON FOUR PAWS,

BUDDY HOLLY MOSS & DEAN'S TEAM CHICAGO 

From our family to yours - Happy Thanksgiving, 2008!

You know, for a few years now, I have quoted today's headline from Barry Levinson's memorable 1990 film, "Avalon."

The film tells the story of a middle class family, whose patriarch came to Baltimore from Eastern Europe before the First World War, and retells his story, endlessly, to younger generations of his family each Thanksgiving Day.  The movie is set primarily in the late 1940's.

Thanksgiving is a strictly American holiday (no slight to you Canadians - I know you celebrate a Day of Thanks each year as well, in October).  It's a feast day not observed in Europe or other countries.

So when grandmother Eva Kirchinsky (Joan Plowright) asks that question of her assembled family at Thanksgiving Dinner, it's here son, a thirty-something Jules (Aidan Quinn) who provides the answer -

"You give thanks for what you've got!"

For some, however, this year is an exceedingly tough one.  Jobs have been lost by the thousands - perhaps, yours, or that of one close to you.  The real estate market has taken a tumble.  It's tougher to get a loan - personal, mortgage, or business.  Gas prices have returned to earth for now, but will they stay that way?   Food prices higher. 

And most feel, despite the feelings of hope coming with the new Obama Administration coming to power in January, the fix will not be quick.

These days, it's easy to get a little blue focusing on things you do not have.  But look at what you DO have - and, please, be thankful for it.

Consider these six-

1.  We live in a country where, despite increased vigilance, the threat of terrorism is not a daily part of our lives.  We pray for the victims and their families reeling from the terrorist attacks in India over the last day, and our very grateful such hellish scenes, although very clear on September 11, 2001, are not entrenched here.

2.  We enjoy an election process which is open and fair, which sparks hot, fierce debate.  There are few countries on earth where this is the case.

3.  We have friends, and families, who love us very much.   Although many of us go through difficult times in our lives, a comparative few go hungry each day. 

4.  We have good health.  Of course, some of us suffer serious, painful health issues.   But we have the world's best medical care to help you heal.  Again - where else can you go on the planet where the same claim can be made?

5.  We interact with colleagues and business associates who appreciate our contributions each day, as well as a system for bettering ourselves, no matter our beginnings.  This year's Presidential Elections, no matter for whom you voted, are testimony to that. And the business associations we in the Real Estate Profession form in the Active Rain and Localism Communities are unique, and priceless!

6.  We have history, and hope.  As Americans, we have survived hard times, and world wars.  Dangerous weather, and economic uncertainty.  These hardships all come and go.  But eventually, they go!

Several of our clients this year have been impacted profoundly and directly in the struggling housing market here in Chicago.  Whether through their own earlier poor judgment, or just bad luck, virtually everyone has lost much of the equity in their homes, and a good portion of their life savings, during the past year.  Much of our business in 2008 has involved clients having to sell their property for less than what they owe on their mortgage, or who have fallen victim to home foreclosure.   

Those buying a new home has seen their buying power eroded, due to depleted savings, as well as the reduced equity of their current home. 

Others have had to deal with loss of a loved one, or a bitter divorce.  Of course, these adversities happen regardless of the economy, but, this year, they seem to have hit even harder emotionally.

However, despite the adversities, we will survive, and be stronger for the experience.  So, please, folks - hang in there!

"Give thanks to whom?"  Really, give thanks for what you've got.  And you still have a lot to be thankful for! 

You agree?

Enjoy the holiday - be safe, be grateful, and be happy!

DEAN and SUE MOSS,

BUDDY HOLLY and GRACIE MOSS,

The Bartosiewicz's and the Moss's,

The Ardito's, the Archand's, the Zech's,

The Mallers's and the Eck's

& DEAN'S TEAM CHICAGO

Good news on home mortgage rates, folks!  They've headed down, in the past 24-hours alone!

Sorry . . . no improvement yet on the massive inventories of distressed homes available for sale here in Chicago and in many communities across the U.S., and underwriting and credit standards are higher to get these now-cheaper loans. Thousands of jobs have been lost over the last few months, here in Illinois and elsewhere. 

But amid a sea of gloomy housing news over the past few days, this favorable interest rate news is certainly welcome!

As we know, one the key problems recently standing in the way of the U.S. Economy in general, and our Housing Market in particular, is the availability of financing dollars for consumers and businesses.

Yesterday, the Fed moved to break up the log jam of frozen funds for business and consumer loans, including mortgage financing.  They pledged to pump another $800 Billion, mainly from the Federal Reserve, into the nation's credit markets, to help restart bank lending once again.

The Fed's move includes plans to purchase up to $600 Billion in mortgage debt owned by Federal Banks, Fannie Mae, Ginnie Mae, and Freddie Mac - giant U.S. Loan Guarantors and Investors now directly controlled by the Federal Government.  They also plan to provide an additional $200 Billion to investors acquiring securities tied to car loans, credit card debt, small business loans, and auto loans.

This dramatic move inspired investor confidence right away.  Within the last day, rates on many 30-Year Home Mortgages, for purchase of a new home or refinancing your current loan, fell dramatically - up to 0.5%, in many cases. 

One of our loan officer partners at Bank of America here in Chicago, Tommy Gonzalez, reports current interest rates as low as 5.375% for a 30-Year Fixed Rate Loan with 10% down, assuming the borrower has very good credit.  He reports today's rates for FHA-Guaranteed Loans fell as well, to 5.50% for a 30-Year Fixed FHA Loan.  Refinance rates are currently as low as 5.625% for a 30-Year Fixed, Gonzalez continues.

Said U.S Treasury Secretary Henry Paulson, "Nothing is more important to getting through this housing correction than the availability of affordable mortgage finance."  He added that the market for securities backed by consumer debt "came to a halt" last month, making it extremely difficult for many to find affordable financing for everything from student loans to household items.

In recent weeks, investor yields on mortgage-backed securities have increased.  This has the effect of raising the costs to borrow.

Beginning next week, as the Fed begins to purchase securities tied to mortgage debt.  The effect will be to increase the price of this debt to investors, driving down yields, and theoretically bringing down mortgage interest rates.

Michael Feroli, an Economist with J.P. Morgan Chase, said yesterday, "We expect this action will measurably improve conditions in the mortgage markets and will have beneficial effects on housing and the broader economy."

Please read our post this afternoon @ BlogChicagoHomes.comfor more, as well as a link to in-depth coverage from Jon Hilsenrath and Deborah Solomon's article in today's online Wall Street Journal.

DEAN & DEAN'S TEAM CHICAGO

This is getting very old, folks - and although many hope for an end to U.S. Housing woes, statistics indicate we might have more of a road to travel before things in the Housing Market brighten up.

Amid a continued slide in real estate sales nationwide, the Chicago Metro Area, including the City of Chicago, continue to suffer through substantial median price and units-sold declines. 

Within the city, home sales declined 21.6% since October of last year, to 1,535 units sold (combined single family home and condo sales).  The median price for a home or condo within the Chicago City Limits - $260,000 - down 9.1% from one year ago.

During October, 2008, sales in the Chicago Metro Area fell 17.7% over year-ago levels, to 5,397 units sold.  The median price in the Chicago Area dropped 10% within the past year.  The median home or condo sales price - $225,000.

Across Illinois, units sold fell 16.9% within the past year, while the median price statewide fell to $173,000 during the same period.

Nationally, sales of existing homes and condos fell 3.1% in October versus September, 2008, to a revised annual projection of 4.98 Million Units.  The October, 2007 to October, 2008 drop - 1.6%. 

The October National Median Home Price fell 11.3% over the past year, to $183,300, from $206,700 in October, 2007.  That median price was the lowest since 2004, and the percentage drop the greatest since record keeping began in 1968, according to the National Association of Realtors  In September, 2008, the median price across the U.S. was $191,400.

The promise of falling prices hamper sales, as many buyers delay their purchase expecting lower prices in the near term.  Lower sales means high for-sale inventories - projected at a 10-month supply nationally - more in some Chicago Neighborhoods and Suburbs.  In order for inventories to shrink, many experts believe prices must fall even further.

Despite the recent release of bailout money from the Fed, lenders are continuing to tighten their loan underwriting standards.  A Third Quarter survey of Senior Loan Officers by the Federal Reserve indicates about 70% of these loan originators applied higher standards on prime loans issued in September, down slightly from the 75% who responded about tighter lending rules in September.

A weak job market hasn't helped housing either.  Unemployment across the State of Illinois was 7.3% in October, higher than the 6.5% national average, and a climb from the 6.9% IL Statewide Unemployment figure in September.  U.S. Non-Farm Payrolls continue to decline as well.  The U.S. Economy shed 240,000 jobs in October, the tenth consecutive month that employment has declined.

See our post today at BlogChicagoHomes.com, with links to stories by Mary Ellen Podmolik's article in yesterday's Chicago Tribune, and Jeff Bater and Brenda Cronin's article, with historical charts, from today's Wall Street Journal. 

DEAN & DEAN'S TEAM CHICAGO

Mornin', Folks!

Looking in the online Wall Street Journal today, median home prices nationwide continued their slide in October.  But that doesn't mean EVERY HOME, in EVERY NEIGHBORHOOD is falling in the same pattern.

As you may guess, national indices of home prices miss the mark - often, by a wide margin - as a means to predicting prices for individual homes, at the Local and Neighborhood Levels.

Take, for example, the highly-followed S & P/Case Shiller Index of relative home values.  The index suggests a 15% drop in the composite home value within the Top 20 Metro Markets across the U.S. since the beginning of 2007.  In the Chicago Metro Area, their Case Shiller index decline is less severe - roughly, 10%, but still significant.

Fannie Mae and Freddie Mac Government Statistics are somewhat more optimistic - but these don't count sub-prime loans in their formula, and may understate the overall average price declines.

But take a look at the following figures from several well-known Chicago Neighborhoods and a couple of Chicago Suburbs - and note not only the big differences within a local market area, but also the sizable difference from the National Averages or the Chicago Metro Area Index -

CHICAGO NEIGHBORHOOD/SUBURB                            MEDIAN PRICE CHANGE -                                                                                        SF, CONDOS, 2-4 UNIT BLDGS -                                                                                               OCT. 2007 - 0CT. 2008

     CHICAGO LOOP                                                                     (-32.5%)

     CHICAGO NEAR NORTH/GOLD COAST                               (-6.4%)

     CHICAGO HYDE PARK                                                           (-17.5%)

     CHICAGO LINCOLN PARK                                                       +2.0%   

     CHICAGO LAKEVIEW                                                              +3.3%

     CHICAGO LINCOLN SQUARE                                                  +3.1%

     CHICAGO PORTAGE PARK                                                    (-16.9%)

     CHICAGO SUBURB - NILES IL                                                  +4.2%

     CHICAGO SUBURB - NAPERVILLE IL                                      (-3.6%)

ALL STATISTICS COURTESY OF MIDWEST REAL ESTATE DATA LLC, THE MLS SERVING THE CHICAGO IL METRO AREA

Indeed, if you were to research Chicago Home Prices at the Metro Area Level, you might assume that the Chicago Market Median Home Price has fallen approximately 10% within the past 22 months. 

The reality, however - many of our neighborhoods and suburbs have actually INCREASED in value, while others have had their median prices fall.

Few of these statistics, however, mirror the national or regional statistics, highlighting the fact real estate prices, in ANY market, are indeed determined at the smallest possible geography, at the neighborhood and street level.  To take pricing to its logical extreme - only the negotiation between the buyer and the seller, for a specific piece of property, will determine what the property is actually worth.

See our post today @ BlogChicagoHomes.com for more, as well as a link to Carl Bialik's article in the November 20th edition of The Wall Street Journal.

DEAN & DEAN'S TEAM CHICAGO

Good Morning!

Here's the latest Stat Summary on the Chicago Real Estate Market, based on data pulled yesterday evening, November 23, 2008 - 

Active Listing Inventory  showed a continued seasonal drop this week.  Pending Sales still stable - but we have worked with an increasing number of "bargain hunters" looking for good-condition properties at historically-low prices ahead of the winter.   Average Sales Price again fell quite a bit - over 5%.  Indeed, average prices for single-family homes, condos, and two-to-four-unit apartment buildings have noticeably fallen this year in the North and Northwest Side of Chicago Neighborhoods we serve. 

Closed Units and Units Expired washed last week's unfavorable numbers. 

Sales Volume bounced back strongly this week, and is likely to increase again pre-Thanksgiving, as many attempt to close pending sales before calendar month's end.  Average Sales Price up over 6% - but likely not an ongoing trend, let's continue to monitor.

Absorption Rate, or theoretical time to clear existing listing inventory, continues its increasing trend over the last couple of months.  It now stands at 16.5 months, continuing a recent upward trend, and up 3.7% versus last week.  Homes-for-sale inventory remains high in most Neighborhoods in Chicago.  The Percentage of Sale Within Six Month (180 Days) stabilized this week - nearly 40% of listings we monitor here closely sell in a normal six-month marketing time frame. 

Here are archived annual Chicago Neighborhood Statistics, including Units Sold and Price Trends Data, for 1992 through 2007, courtesy of The Chicago Association of Realtors.

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 November 24th             4,662                   40                         51               60

w/e November 17th             4,711                   41                         43               74

% CHANGE                          -1.0%                 -2.4%                  +18.6%         -18.9%

CLOSED PROPERTIES DATA

                              AVG SALE PRICE     AVG DAYS ON MKT     TOTAL VOLUME   

w/e November 24th        $303,648              157 DAYS                   $15,046,048

w/e November 17th        $285,697              144 DAYS                       $12,284,971

% CHANGE                     +6.3%                      +9.0%                             +22.5%

THEORETICAL TIME TO CLEAR EXISTING INVENTORY (ABSORPTION RATE) -

w/e November 24th - LAST 12 MOS - 15.34   LAST 6 MOS - 14.05    LAST 3 MOS - 16.49

w/e November 17th - LAST 12 MOS - 15.38     LAST 6 MOS - 13.94   LAST 3 MOS - 15.90

PERCENT OF HOMES SELLING IN 180 DAYS - 

w/e November 24th - 39.79% (UNSOLD - 60.21%) 

w/e November 17th - 39.94% (UNSOLD - 60.06%)

 SOURCE: MIDWEST REAL ESTATE DATA LLC, AREA MARKET SURVEY DATA

Review our Chicago IL Real Estate Stats Pack Archive via BlogChicagoHomes.com. 

Call our Team anytime for current trends in any Chicago Neighborhood or Chicago Suburb!

Have a very Happy Thanksgiving holiday!

DEAN & DEAN'S TEAM CHICAGO

Hey, hey, everyone!  Server trouble today, I guess - but our Chicago Bears actually won a football game.  So I'll refrain from complaining.

Search Engine Optimization!  Pay Per Click!  Is the often-significant investment in these traffic-building strategies paying dividends for you?  Or, do you develop and implement YOUR OWN STRATEGIES for maximizing organic placement on your blog, and on your main website?   If you do them yourself - how do you find the time, or are you naturally a genius?

I've heard pro and con here.  One thousand experts say you can't achieve the results you want without these two elements today.  This is especially true, they contend, as Google changes its methodology for "scoring" websites - based on "conversion or inquiries" rather than simply keywords. (See Robert and Carol Clay's Active Rain Post, with a link to a very relevant Inman Blog Post, explaining the coming Google changes.)

For about six months, I tested minimal PPC - about $100/month budget - and got some leads.  I've been doing SEO through the highly-respected Compass Internet Systems - about a $290/month investment, and get leads weekly.

Problem is - most of these leads are of poor quality - many buyers are talking to a number of Realtors, and few have turned into paying clients, let alone show up for our first Intro Office Meeting.

Am I doing something wrong here?  Perhaps, not doing enough?

And, please, keep in mind - like you, I don't have unlimited resources here.  It's easy to solve a problem by attempting to throw money at it - but often times, that approach is like firing a shotgun off in the dark: you might hit something, but, more than likely, you'll miss your target.

Would very much appreciate your shares!

DEAN & DEAN'S TEAM CHICAGO

BTW . . . Finally, I've customized our Team Chicago Real Estate Blog.  It wasn't as difficult as I had feared!  Your thoughts and suggestions?  Please click, and let me know.

Hope you're enjoying your Sunday afternoon folks!  Our Chicago Bears aren't doing so well these days, so I'm taking some time off from the Bear-St.Louis Rams game to hit the blogging trail!

By now, you've heard of plans by U.S. Mortgage Guarantors and Investors Fannie Mae and Freddie Mac to modify thousands of its loans held by borrowers at least three months in arrears, who still have the ability to make their house payments with a modified loan at 38% of their household income.

While they are putting the finishing touches on this program, they have decided to stay foreclosure sales and resulting evictions through January 9th of next year.  No foreclosures for the holiday season!

The companies announced Thursday plans to suspend foreclosure sales of many owner-occupied single-family and two-to-four-family apartment buildings between November 26th, 2008 and January 9th, 2009.

Although Fannie Mae and Freddie Mac hold a fairly small percentage of all mortgages held by home borrowers in distress, they hope their example will be adopted by other lenders and mortgage-servicing firms.

Until recently, the long-held position of the mortgage lending industry involved handling delinquent home borrowers one at a time.  This is a costly and time-consuming process, both for the lenders and the borrowing consumers, as average home prices have continued to tumble in many areas across the U.S., and foreclosures have skyrocketed. 

The costs for lenders to take back foreclosed homes, and later sell them at a steep discount, continues to climb quickly.  Hence, their desire to address the problem on a more streamlined, far faster basis.

Freddie Mac presently holds 28,089 foreclosed properties, as of the end of the Third Quarter, 2008.  That's nearly a 136% jump from 11,916 at the end of the Third Quarter, 2007.  Sales proceeds from the sale of these foreclosed homes averaged 29% less than the loan balance due.  The same deficit was 14% one year ago.

Fannie Mae held an inventory of 67,519 single-family foreclosed homes on September 30th - up from 54,173 at the end of the Second Quarter of this year, and 33,729 at the end of 2007.  The net sales prices for Fannie's foreclosed home sales fell to an average of 30% of the outstanding loan balance, from 22% less one year ago.

For more, please read our post today via BlogChicagoHomes.com, with a link to Friday's article in the Wall Street Journal by Aparajita Saha-Bubna.

DEAN & DEAN'S TEAM CHICAGO

Illinois is a state that depends on its manufacturing and construction sectors.  As a result of the sliding economy, the vibrancy of both sectors has severely declined over the past year.

Indeed, for the fifth month in a row, the IL State Unemployment Rate has risen - to a statewide average of 7.3% -and is now over the national average of 6.5%.  IL population continues to grow, so jobs must be created at the rate of several thousand each month just to accommodate the growing work force here.

Let's intuitively relate this to the Real Estate Market - across IL and in Chicago.  Most would assume the fear of losing one's job would put a damper on their plans to purchase a new home.

Statewide, the unemployment rate increased 5.8% versus the month of September - from 6.9% to 7.3%.  The Construction Sector evidenced the most significant drop, losing 4,100 construction-related positions and reducing overall employment in activities related to construction to 254.500.  A total of 15,200 construction jobs have been lost in IL within the past year, and 7,400 of those jobs dried up within the past two months.

Illinois has always had a large base of manufacturing, commercial, and financial employment.  Locally,the job market in Illinois and Chicago has been negatively impacted by slowing demand for goods, reduced purchasing power due to the turmoil in the credit markets, declining retail sales, fewer exported goods, and a sizable drop in residential construction.

Says Maureen O'Donnell, Director of the Illinois Department of Employment Security, "Although Illinois has a diverse economy, the national economic slowdown has had a negative effect on Illinois unemployment and thus we need federal government assistance with an investment in infrastructure and additional stimulus to help create jobs."

Nationally, unemployment jumped to its highest level in 14 years, to 6.5% in October, according to U.S. Labor Department statistics released earlier this month.  With nationwide recession growing deeper, many experts feel the jobless rate in the U.S. could exceed 8% before the end of 2009.

Perception often becomes reality, especially for homebuyers nervous if they can keep up with the likely higher payments on a new home if their job situation becomes tenuous.  Many from Chicago our Team has spoken with have decided to put their home purchase plans on hold until they feel more comfortable with their own job security.

In addition, those considering selling are drawing back, and staying put for the time being, unsure if they'll be able to comfortably afford something new.

See our post from Friday afternoon at BlogChicagoHomes.com, along with a link to James P. Miller's article in last Thursday's Chicago Tribune for more info.

DEAN & DEAN'S TEAM CHICAGO