"You've Caught the NET!"

"FEAR!  It's a scary thing!" 

This sounds like a quote from Baseball Great Yogi Berra, but its true source is unknown.   But fear might be playing a key part preventing quick rebound in the housing market.

Which factors keep the U.S. and Chicago Housing Markets from beginning to rebound?  Fear over rising unemployment.  Reduced confidence in the U.S. Economy.  And the perception - generally true - that mortgage money is available, but often extremely tight for all but the most credit-qualified borrowers.

In their latest survey of Consumer Confidence, research firm The Conference Board surveyed 5,000 households to calculate a Consumer Confidence Index of 38 in December, down from 44.7 in November, and 90.6 one year ago.

At the same time, the Standard & Poors/Case-Shiller Home Price Index fell 2.2% in October (the latest month for which data is available) versus September, and 18% from October, 2007.  The Chicago Metro Case-Shiller Index was not quite as bad, showing a 10.8% decline year-over-year, and a 1.6% drop in October versus September, 2008.  (See the Wall Street Journal Developments Blog today for a summary of the latest National Case-Shiller Index Numbers).

Nationally, three U.S. Metro Areas - San Francisco, Las Vegas, and Phoenix - showed index declines greater than 30% year over year.  Of 20 Metro Areas tracked in the Index, Charlotte NC (minus 3%) and Dallas TX (minus 4.4%) had the lowest declines of all the market areas analyzed.

Regarding their outlook on employment prospects, 42% of respondents to the Conference Board Consumer Confidence Survey indicated jobs were "hard to get" in December, compared to 37.1% in November.  Those responding that jobs were "plentiful" dropped to 6.2% this month, versus 8.7% one month ago.

Interest rate and capital injection programs by the Bush Administration, with the aim of lowering mortgage interest rates, have succeeded to some degree.  as many lenders can now offer 30-Year Fixed Loans of 5.50% or less to their best, most-credit-qualified customers.  But for those with middling credit credentials, and more modest down payments, interest rates have not tumbled as dramatically.

As foreclosures continue to rise, lenders, still licking their wounds from billions of dollars in mortgage defaults over the past year, have steadily risen loan standards for new and re-finance borrowers.  The result?  Less total mortgage money being given out to the general homebuyer market.  This keeps homes-for-sale inventories high, and pushes prices down further on most homes.

According to David Blitzer, Chairman of the Standard & Poors Index Committee, and quoted in Sudeep Reddy's article today in the Wall Street Journal, "We need a lot more people in the market as much as anything else.  The lending standards have to be such that a reasonable number of people can get loans."

Not all is bleak longer term, however.  In aggregate, home prices, according to the Case-Shiller Index, have increased 58% since January, 2000, with New York City showing the greatest index increase - 90% - during this period.  On the other hand, the Metro Detroit price index fell 14% between January, 2000 and October, 2008.

Will the Obama Administration take steps to improve consumer confidence, reduce growing unemployment fears, slow home foreclosures, and increase the general availability of mortgage money?  We'll have to wait and see!

See our post today @ BlogChicagoHomes.com.

Happy New Year - Welcome, finally - 2009!

DEAN & DEAN'S TEAM CHICAGO

Hi, All!

Back in the early 1990's, our Chicago Real Estate Team did a beautiful Personal Video Brochure on VHS Tape, and distributed the video, along with periodic installments of our listings in the area, to our clients and prospective clients. 

We placed the tape in a nice plastic case, with a custom label - and were considered Cutting Edge Marketers, back in the day.

Well, it's the end of an era now, for both business and personal users (i.e, thousands of movie viewers) of the VHS Video Tape Format.  Without tears being shed, according to a story in last Saturday's Chicago Tribune by Geoff Boucher, the last U.S. Distributor, Ryan Kugler of Southern California, has shipped his last VHS tape, and plans to liquidate and discard remaining VHS Tape inventory early in the New Year.

If you come to think of it, the advent of video tape recorders, and the VHS Tapes (and, earlier, BetaMax Tapes) that ran on them, changed the entire entertainment industry. 

Before movies-on-tape, the only way to see a feature film was to go to a movie theater - or, wait months until it came out on TV.  Not available for the TV Replay - more waiting, until it was aired once again.

After video tapes became popular, mom-and-pop rental stores, followed by large chains such as Blockbuster and Hollywood Video, competed for our entertainment dollars as much as large movie houses and dance clubs.  Recent releases along with classic motion pictures were now available to view, in the privacy of your own home, on your own Analog TV Set, anytime - and, often, for far cheaper than admission to the theaters!

The proliferation of videos vastly expanded our personal entertainment options as never before. 

Pioneering entrepreneurs and small business people used VHS Tapes in business.  Training Videos were all on VHS!  (BTW . . . our own Personal Video Brochures - I just found about 50 of the left over tapes down in the basement, and threw out 48 of them, saving the final two just to prove, years from now, the format actually once existed).

Today, even those mini-business-card-sized DVD's some Realtors and others are using are out of fashion.  Live streaming video, via the Internet, is what agents use now for introductions.  And, who knows - that might not even be around a few years from now!

Very soon, across the U.S., VHS will be virtually non existent - with the exception of those old wedding videos and home-recorded vintage TV shows of many years ago.

It's tough to even find a stand-alone VHS player these days!

Japanese electronics giant JVC, who introduced VHS (Video Home System) tapes back in 1977, and one of the largest manufacturer of video tape recorders, stopped making the units last October.  The company, along with other manufacturers, still manufactures hybrid VHS/DVD players, but how long these products will be available is unknown.

In a post from Chad Berndtson on The Channel Wire Blog, he reminds us the last major motion picture to be released on video tape was "A History of Violence," and that came out over two years ago.  Larger retailers, including Target, Wal-Mart, and Best Buy, began phasing out video tape sales in their stores several years before that.

DVD Movie Rentals surpassed VHS rentals for the first time in 2003.  By 2005, only a dwindling fraction of movie rentals were made available on the analog tape format.

At the end of 2008, the discount racks in convenience and grocery stores are filled with older, non-blockbuster movies as before - but all are DVD's, there's not a large, boxy VHS tape to be found anywhere!

And Real Estate Practitioners and other small business people - Social Networking Sites such as Facebook and LinkedIn, Active Rain Blogging, and Twitterhave replaced the need for most types of pre-packaged video introductions anymore.

See our post via BlogChicagoHomes.com for more.

And - have a Happy - and SAFE - New Year!

DEAN & DEAN'S TEAM CHICAGO

Good Morning!  We hope you had a very Merry Christmas!

Here's the latest Stat Summary on the Chicago Real Estate Market, based on data pulled yesterday evening, December 28, 2008 - 

This week's sample is small, and, for that reason, not scientific.  But a couple of things jump out here.

First of all, Active Listing Inventory has been stable the last few weeks, despite declines in Just Sold (Pending) inventory and Average Sale Price.  This might indicate that only those properties at the lowest price ranges are selling this time of year here in the Chicago North and Northwest Side Neighborhoods we serve most frequently.  Closed Properties shows many scheduling their usual end-of-month closings early, in advance of Christmas, but Sales Volume is way down, partly due to the time of year, but also due to the continuing-low Average Sale Prices. 

We would expect Expired Properties to bounce strongly next week, as many agents' Listing Agreements typically expire at year's end.  Average Market Time jumped sharply this past week, but I would expect some moderation to the norm (although a high norm) that we've been seeing the last few months here. 

Absorption Rate, including theoretical time to clear existing listing inventory, continues to worsen. There is now nearly 19 months of inventory in our North and Northwest Side of Chicago Neighborhoods service area.

The Percentage of Sale Within Six Month (180 Days) continues weekly improvement - nearly 41% of listings we monitor here closely sell in a normal six-month marketing time frame.  Hopefully, the trend toward pricing listings correctly to sell them quicker and for a higher percentage of asking price - the downward-revised asking price, on average - will continue into 2009.

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.

In addition, here is an Interactive Median Price Heat Map, from the Chicago Tribune Real Estate Section, covering Every Chicago Neighborhood.  View the map for links to maps for Chicago Suburbs.  It is updated as new data becomes available.

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 December 28th           4,234                   17                         32               43    

w/e December 21st            4,296                   35                         34               53

% CHANGE                            -1.4%             -51.4%                  -5.9%         -18.9%

CLOSED PROPERTIES DATA

                              AVG SALE PRICE     AVG DAYS ON MKT     TOTAL VOLUME   

w/e December 28th         $236,412             235 DAYS                     $7,565,184

w/e December 21st          $359,865             140 DAYS                    $12,235,410

% CHANGE                        -34.3%                 +67.9%                           -38.2%

THEORETICAL TIME TO CLEAR EXISTING INVENTORY (ABSORPTION RATE) -

w/e December 28th - LAST 12 MOS - 14.47   LAST 6 MOS - 14.56    LAST 3 MOS - 18.71

w/e December 21st - LAST 12 MOS - 14.66     LAST 6 MOS - 14.26   LAST 3 MOS - 17.90

PERCENT OF HOMES SELLING IN 180 DAYS - 

w/e December 28th  - 40.82% (UNSOLD - 59.18%) 

w/e December 21st - 40.66% (UNSOLD - 59.34%)

 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!

Enjoy your New Year's Celebration - SAFELY!

DEAN & DEAN'S TEAM CHICAGO

Those nasty POTHOLES are back in Chicago once again.  And, according to the Chicago Department of Transportation, we're only at the beginning of Chicago Pothole Season!

For those not as city-fied as those of us here in Chicago, potholes are those growing craters, both large and small, that begin to pop up on our expressways, major thoroughfares, and less-busy residential streets each winter and spring.  They destroy wheel alignment, damage fancy aluminum wheels, and jar the nerves of those who cannot avoid them.

Even though winter is officially only a week old, cold weather and snow, intermittently followed by periods of warm up, have pock-marked many road surfaces in the city, and made them not only irritating, but potentially dangerous as well.

Near our office in the Lincoln Square Neighborhood on the North Side of Chicago, numerous craters have appeared on Western Avenue between Belmont and Foster, on four-lane Irving Park Road between the Kennedy Expressway and the Lake, and on Lincoln Avenue, all the way up to suburban Lincolnwood to the north of the city.

Serious damage is often a result when drivers can't avoid potholes.  Side-swipe accidents - or worse -sometimes result when drivers quickly swerve to avoid them. 

Last week, temperatures here started out near zero.  They rose to just above the freezing point mid-week, turned into the teens over Christmas Eve and Christmas Day, and skyrocketed into the seasonally-tropical 50's Saturday.  Rain melted much of our snow cover locally, causing flooding in some areas.

Today, Sunday, the temperature is back in the high-20's.  Remaining moisture is re-freezing across the Chicago area. 

Chicago Department of Transportation workers are getting about 300 calls each day now over pothole complaints.  They use a cold-asphalt patch as a temporary fill measure, with a more durable hot patch going in when the weather warms next spring.  If calls escalate in January, February, and March, it could over-tax repair crews, and create longer lead times for repair.  For now, however, according to Brian Steele, a spokesman for the Department, crews are keeping up with repair work.

Steele credits a recently-resurfaced Lake Shore Drive for reducing the number of complaints on this storied, but very-heavily-commuted-upon road.  However, LSD represents only a tiny proportion of the 3,800 miles of arterial and residential streets across Chicago - not even considering the extensive Chicago Expressway System, mostly tended to by State of IL Repair Crews.

Find a dangerous pothole in Chicago?  Call "311" in the city to report it and get it filled. 

Slow response?  Let us know via this blog.  We'll get word to the Department of Transportation, so they can get them repaired.  Hopefully - quickly!

See our post from yesterday evening via BlogChicagoHomes.com, with a link to Steve Schmadeke's article in the Chicago Tribune, from Christmas Day,

DEAN & DEAN'S TEAM CHICAGO

For homeowners delinquent in their mortgage payments, January, 2009 will usher in a frightening time.  Effective January 9th, the Fannie Mae and Freddie Mac Foreclosure Moratorium, imposed during the holiday season, will end. 

Predictions for thousands of new foreclosure filings, fed by a weak U.S. Economy, a continued freeze in the credit markets, declining home values amidst high homes-for-sale inventory, and the ongoing threat of job loss will cause concern, and sleepless nights, for many others trying to stave off delinquency.

Several Chicago and Chicago Area assistance groups will be proactive in the New Year, while, at the same time, remaining hopeful that the new Obama Administration will take steps to assist many homeowners facing default.

Title Company ATG - Attorneys' Title Guaranty Fund - has manned a hotline for some time for general legal questions on the home buying and selling process.  On the morning of January 10th, between 9AM and Noon, ATG will dedicate one morning to homeowners with legal concerns specific to foreclosure. 

The ATG Hotline - 800-252-0402.

The special calling block will be of highest benefit to those facing the early stages of the foreclosure process, perhaps only recently delinquent, or about to become delinquent.  Lawyers on the hotline will offer free legal help, and also be prepared to refer the callers to local housing counseling agencies throughout the Chicago area. 

Liz Caton, Director of Counseling Services for the Northwest Side Housing Center, will offer five separate community outreach events to fearful homeowners, beginning with one at Truman College in the Uptown Neighborhood of Chicago, 1145 W. Wilson Avenue, on February 7th.  The Center is collaborating with several Chicago Area housing counseling groups as well as a credit union.

In 2008, Neighborhood Housing Services of Chicago provided individual counseling to over 3,600 families in risk of foreclosure around the area - double the number served in 2007.  They lead an expanded team of counselors in 2009, and plan to offer workshops throughout the city addressing concerns of distressed homeowners. 

Says Michael Van Zalingen, the organization's Director of Homeownership Services, "The shame of [foreclosure] is going away when they realize it's not just them.  And when they hear the reasons other get behind, it makes them feel better."

The Chicago Department of Housing plans to continue its program of Borrower Outreach Days next year, and to expand the program to more neighborhoods across Chicago.  Their programs include homeowner workshops, legal assistance, and loan workout sessions with representatives from lenders and specially-trained counselors.  Their most recent program, earlier in December at North Park Village in the North Park Neighborhood on the Northwest Side of Chicago, drew in excess of 350 concerned homeowners.

For more info on Homeowner Help Initiatives in the Chicago Area, and to share those being offered in your hometown, visit BlogChicagoHomes.com, with a link to Mary Ellen Podmolik's article in the Chicago Tribune last Friday, December 26th.

And, please share your comments here.

DEAN & DEAN'S TEAM CHICAGO

Hope you enjoyed Christmas with your family!

I just wanted to share the latest Chicago Neighborhood News, compiled by our Team Member Jennifer Arcand.   This week, Jennifer discusses goings-on in the Chicago Neighborhoods of Lakeview, Lincoln Park, the Chicago Loop, and Norwood Park, and the Chicago Suburb of Naperville IL.

LAKEVIEW

Even in a slowing economy, nothing will dim the spirits of the aggressively cheerful holiday sweater.  This festive garb has launched an event of its own: the ugly sweater party.  Folks young and old, urban and suburban, gather together with a common goal-to don their ugly sweater and toast each other in good cheer.

"Everyone has one that their grandma gave them, and they never have any occasion to take it out of their closet," says Jason Erkes, the president of the Chicago Sport and Social Club, who hosted an ugly sweater party Friday night at Rebel Bar in Lakeview. "It's a chance for these things to see the light of day."  Click here to read more.     

LINCOLN PARK

There are holiday displays in Chicago that are warm and celebrate the season; like the animated department store windows on State Street or the wreath-bearing lions outside the Art Institute.

And then there are some that might be considered "questionable." 

The Santa figures inside Lincoln Park's River Shannon pub, wearing faded red suits and nicotine-tinged beards that spread good tidings from the shelf above bottles of whiskey.   

Or the yuletide decorations at a local Greyhound bus station.  Click here and decide for yourself. 

CHICAGO LOOP

Every year we find ourselves in need of just one more "spur of the moment" Christmas gift.  Why not get the an fail-proof last-minute gifts they are sure to love. 

Garrett Popcorn Shops has reopened a temporary shop at 625 N. Michigan Avenue with its entrance on Ontario Street. Open through Jan. 4, this Garrett Popcorn Shops Holiday Express location is selling 1- and 2-gallon holiday keepsake tins.  There are holiday tins along others including one displaying a Chicago Skyline motif and another commemorative Wrigley Field tin (2-gallon size only for that one).  Small and large bags of The Mix, CaramelCrisp and the new Gingerbread CaramelCrisp also are for sale.  One-gallon tins are $30, 2-gallon tins are $55, a small bag is $5 and large is $7.  Garrett also has Loop locations and a Web site, garrettpopcorn.com.  For more gift ideas, click here.

NORWOOD PARK

Due to fading resources, shrinking membership, declining pledges, and limited incoming revenues in conjunction with increasing operating and building maintenance expenses, two Northwest Side Chicago Presbyterian congregations are planning to merge. The Presbyterian Church of Norwood Park, 5859 N. Nina Avenue, and St. Andrew Presbyterian Church, 7434 W. Berwyn Avenue, are preparing their first service together early January 2009.

Original plans were for both church buildings to be sold and a new meeting place purchased; and for the pastors, the Rev. Brenda Barnes Jamison at Norwood Park and the Rev. Debra Paton from St. Andrew's, to be replaced immediately. However, because of recent reverses in the real estate market, the property sales are stalled, and for the moment, the congregations will meet in alternating months at each church.

A new name for the combined congregation is still to be determined.  Click here to learn more.

NAPERVILLE

Just in time for your holiday travel, work on the system-wide roadway rebuilding and widening projects is being wrapped up.  The Illinois Tollway is presenting drivers with new pavement system-wide and additional lanes on the Reagan Memorial Tollway, Tri-State Tollway, Veterans Memorial Tollway and Jane Addams Memorial Tollway.

The Illinois Tollway will also suspend all temporary lane closures for construction over the Christmas and New Year holiday weekends from noon on Wednesday to Monday at 9 a.m. and from noon Dec. 31 to 9 a.m. Jan. 5.

A word of caution to drivers, you still need to be aware of new traffic patterns and construction work zones throughout the system where slower speeds may be necessary due to shifts in traffic, narrow lanes or no shoulders.   Motorists must still obey the construction zone speed limit of 45 mph as posted, even if no workers are present.  Click here for the entire article.

Let us know if you would like us to publicize any of your organization's Chicago Neighborhood Events via our blogs.  Just give us a couple of days notice, so we can spread the word for you.

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

DEAN & DEAN'S TEAM CHICAGO

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

Merry Christmas, you dogs! 

This week, I decided to post a day early due to the holiday.  I wanted to capture the mood of the Moss-Bartosiewicz Family Christmas, 2008, while all the fragrant memories are still fresh in my mind - and the taste of the end of Prime Rib is still fresh in my lil' belly!

To me, Christmas in Chicago is an odd collection of TV ads, classic movies, and dozens of humans heading from store to store, fighting crowds for gifts, and often leaving very stressed out. 

(Scouting the stores for this story earlier this week, however, I noticed there were fewer people out shopping, and they seemed to be buying less.  It appears, from this un-scientific Dog's Eye View, that folks are cutting back a bit this year, because of the economy).

But there is something more this year.  I can sense it in my little head.

Despite the near-continuous snow and cold here in Chicago this past week, and the growing fear over the sluggish Chicago Housing Market, the U.S. Economy, and Rising Unemployment - humans still keep the faith.  They share with their families.  And, judging by the high level of activity in Salvation Army Kettles at the entrance of malls and stores - they still share with those less fortunate than they are.

That should be a lesson for us dogs, since loving our humans is the Number One thing we all do.  Yes?

In my own short little life, I have found the true meaning of Christmas to be in your heart.  No matter your religion, it gives you a chance to reflect on what is really important - family, friends who care for you, and, of course, the little four-pawed creatures in your life who help to give it so much meaning.  You know, like ME, and our Lil' Gracie Moss!

And, you know, no matter what things may be like in the short term, the love of your family, your friends, and your faith will make sure you will push through all the tough stuff, and be stronger on the other side.

During this holiday season, you dogs, cherish these relationships.  Nurture them.  Know their value.  Remember, if things are tough for you and your human family right now - hang in there!

Things WILL get better.  They always have!

Check out my annual Christmas Post via BlogChicagoHomes.com. 

Happy Holidays!

YOUR ACE REPORTER ON FOUR PAWS,

BUDDY HOLLY MOSS & DEAN'S TEAM CHICAGO

(and, from GRACIE MOSS - Keep the Season Bright!)

CURRENT OWNER OF 7244 SOUTH PRAIRIE AVENUE, CHICAGO, TO SELL HOME WITH NOTORIOUS HISTORY THIS SPRING!

Perhaps you're the one who already has everything - and everything else all lined up under the Christmas Tree this morning!  Well, just in case you're looking for one more uniquely-Chicago gift, one will be available after the New Year.

The early-1900's era two-flat building where Al Capone lived when he first came to Chicago will be for sale!  Its current owner, Barbara Hogsette has plans to relocate out of state in a few months, and needs to sell.  She will be asking somewhere in the mid- $400's.  You interested?

Check out Google Street View and you'll find the red-brick building blending right in to the other Chicago-style Bungalows and small apartment buildings up and down the street.  It's located in the middle-class Park Manor Neighborhood of Chicago, about 9 miles directly south of Downtown Chicago and The Loop.  Then, as today, the two-flat is in a very quiet residential neighborhood, far from the hub bub of the city.

(Photo courtesy of The Chicago History Museum - CHS DN-19356)

The Capone family purchased the building in August, 1923 for $5,500, according to Cook County Deed Records.  To protect his family from his own nefarious activities, the home was deeded to his wife, Mae, and his mother, Teresa.  After Al Capone died in 1947, his mother remained in the house until 1952, when it was taken over by a neighborhood bank.

When Hogsette purchased the home in 1963, for $29,500, she knew little about its notorious past owner.  To this day, the exterior, and many vintage interior features, remain virtually unchanged to the days when The Capones were on title.  There are three bedrooms on each level, no-longer-available green and white tile in the entry foyer, and long, narrow Chicago-style hallways with dark-stained hardwood floors.

The building also features a full basement with an old wine cellar.  When Hogsette closed on the home 45 years ago, the basement contained a long table and a couple of antique telephones which police believed to be a part of Capone's bookie operation.

Said Hogsette, a retired school teacher, "I've read some things about [Capone], and I've seen the 'Untouchables,' but I never really thought about this being his home.  This is my home. I never thought it was that sensational that he had lived here."

To this day, the home is quite inconspicuous in the neighborhood.  No plaques designated that Chicago Gangster Capone once lived here.  Over the years, Hogsette and others have been resistant to give the home any more notoriety, although unofficial Chicago Tour Buses include the home in drive-by each summer.

Do you want a piece of Chicago History?   Here's your chance!

BTW . . . Our Team would be more than happy to represent you as Buyer's Agents should you buy!

See our post today @ BlogChicagoHomes.com for more, with a link to Joel Hood's story in today's Chicago Tribune.

And have a Blessed Holiday, from Our Team to Yours!

DEAN & DEAN'S TEAM CHICAGO

More snow here in Chicago tonight, slowing everyone's holiday travel plans here.  Be safe in your travels over Christmas!

The dark cloud continues over home and condo sales, both here in Chicago, across Illinois, and nationally. 

Figures released earlier today by the Illinois Association of Realtors for the City of Chicago indicate the sale of single family and condos sold dropped 41.3% in November as compared to 2007 numbers, while the median home and condo price fell 23.3% during the same period.  The current Chicago Median Price is $222,500, down from $290,000 one year ago.

Across Illinois, units sold 33.9% versus one year ago, and the median price fell 13.2%. 

The IL and local figures come on the heals of a discouraging report by the National Association of Realtors indicating a units-sold drop nationally of 8.6% in November alone, versus October, 2008.  The national median home price dropped 13.2% year over year between November, 2007 and this November, to $181,300.  That's the largest annual decrease in 40 years.

NAR figures indicate 4.2 Million unsold homes were on the market last month, representing a theoretical 11.2 month inventory for sale.  This was up from the 10.3 month estimated national inventory in October.

But here is encouraging news!  

Mortgage interest rates are down, on average, from 6.25% for a 30-Year Fixed Rate Loan in November, 2007, to a 6.13% average today.   Last week, the Federal Reserve Board lowered its benchmark Fed Funds Rate to a target between 0 and 0.25%, immediately, yet temporarily, dropping average interest rates to a near-record 5.19% level for the week ending December 18th, according to data provided by U.S. Mortgage Investor and Guarantor Freddie Mac, the Federal Home Loan Mortgage Corporation.

Initially, falling interest rates sparked a surge to refinance by existing homeowners.  Continued lower rates could spur new purchases next year, many experts say, especially if mortgage rates fall near the 4.5% range targeted by the Fed. 

Many also agree, however, that unsold inventory would have to be reduced, and the increase in home foreclosures abated, for a true housing rebound to begin.

Would you agree?  What additional steps need be taken to turn the housing market, both locally and nationally, around to the positive side?

Please share your thoughts!

For more, read our post today via BlogChicagoHomes.com, with links to Alan Zibel's story in today's Chicago Tribune, as well as summary statistical information from the Illinois Association of Realtors, from their Press Release today.

Happy Holidays!

DEAN & DEAN'S TEAM CHICAGO

It is still freezing here in Chicago!  

You want proof?  Watch ESPN for tonight's Chicago Bears-Green Bay Packers football game, and note the steam rising from the field, and from the players on both sides.

While you're watching the game - say a prayer that the Bears will pull this one off tonight and keep their post-season hopes alive.  Will ya?

Much has been said about Mortgage Loan Modification Programs, and their potential to make it easier for those in financial distress to keep their homes and fend off foreclosure.  Have you heard?

Indeed, several large lenders - including Bank of America, J.P. Morgan Chase, Wells Fargo, and Citibank are considering more requests for Loan Mods than they ever have.  Still, however, the process remains cumbersome, and not every loan modification request gets granted.

Often times, those with foresight - who attempt to contact their lender BEFORE they become delinquent in their loan - are less likely to receive modified loan terms than a borrower who is several months late, and approaching loan default.  Why, lenders might think, should they give you easier-to-afford terms if you're keeping up with your payments anyway?

This might make good business sense at first, but does overlook the likelihood of a near-future default by a candid borrower.

To determine if a specific borrower would qualify for a modified mortgage loan, they look at their monthly house payment as a percentage of their total gross household income.  It that house-payment-to-income ratio exceeds lender guidelines - typically, 31 to 41% for most lenders - a loan modification program is considered.   However, if the ratio is lower and more favorable, the loan modification is more likely to be denied.

Of course, there are always mitigating circumstances.  If the borrower has endured some sort of hardship - loss of a job, divorce, prolonged illness, physical disability, or the death of a spouse, the application for loan modification stands a better chance for approval.  Most lenders require a written, signed "hardship letter" as part of your application.

To create a loan modification that is win-win for both parties, the bank aims to collect as much as possible of the original loan amount, while, at the same time, working out a payment schedule that the borrower is likely to keep current with.

Common loan modification programs may offer an extended period for principal payback (often as much as 40 years, rather than the original 30), a reduction in the interest rate, and a deferral of the principal payments due.

Very few loan modification programs offer actual principal reduction, or forgiveness of debt.  For banks, giving back this actual equity is a very last resort - one often taken only in the more desperate situations of short sale or foreclosure.

Approval time varies, depending on one's individual financial situation.  Some seeking loan modification are approved immediately; others must wait longer.

Check out the U.S. Department of Housing and Urban Development's website for more information on Mortgage Modification programs, as well as connections to a not-for-profit Mortgage Counselor who can help nervous borrowers successfully apply for a Loan Mod with their lender. 

Our post today via BlogChicagoHomes.com provides more details, as well as a link to Marcie Geffner's article in last Sunday's Chicago Sun-Times.

DEAN & DEAN'S TEAM CHICAGO