"You've Caught the NET!"

Reports suggest the National Hockey League is ready to announce this coming winter's Second Annual Outdoor Winter Classic may be played in Chicago - at Wrigley Field, home of the Chicago Cubs!

(BTW - could it be the World Champion 2008 Chicago Cubs by January?  Stay tuned here!)

Although the official announcement won't be made until next week, Comcast Sports Net - Chicago's major Sports Network - reports the deal is just about done!

The game will be played here in January - usually a very frigid time of the year in Chicago - and at Wrigley Field, where no sporting event of this nature has ever been hosted (a few professional boxing matches were held at Wrigley years ago, and Wrigley Field was the home of the Chicago Bears from the 1920's through 1970 - but never a home for hockey!)

The 2009 Outdoor Winter Classic will match up the Chicago Blackhawks with the Detroit Red Wings - two of the "Original Six" Teams comprising the National Hockey League.  See this Wikipedia article for more info on the "Original Six."  The date of the game has yet to be announced.

NHL Commissioner Gary Bettman originally considered New York's Yankee Stadium for the 2009 event.  The old stadium is hosting baseball for the last time this year, and will be replaced with a new Yankee Stadium next door beginning next year.  The hockey event would have been the last official sporting event here - but a "variety of issues," according to Bettman, make a New York game not viable.

See our post today at BlogChicagoHomes.com for more info, as well as a link to a story and video by Chris Kuc in yesterday's Chicago Tribune.

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!

Here I am in my special "Blog Writing" Office - getting ready to work on this week's post!

You'd probably think a Little White Dog like me, with my short little legs and all, would have no interest in bicycles.  Mais, non! (Bet you didn't know I spoke French, did you?) 

I not only like to ride with my Designated Humans, sidecar-style, as a wingman.  I also have my on Buddy Bike - with 6" knobby tires, and a bright Cubbie Blue titanium-alloy frame.  Set me back a lot of bones, you know.

Have you ever had your bike stolen?  The cable lock cut - or lost an unlocked bike you were only going to leave unattended for a minute or so?

Our Team Leader Dean did - and it broke his heart!  A Schwinn Sting Ray model - high-rise handle bars, Banana Saddle, and in Racing Gold.  Baseball cards in the spokes.  The loss made him very sad, he related to me, during the Summer of 1965!

Most bicycle thefts go unreported - most owners simply chalk up their loss to fate, and go out and buy another.  But bicycle thefts are high, and rising, nationwide.  Over 230,000 bikes were stolen last year across the U.S.  Although Chicago Police don't keep specific records for stolen bicycles, the manager of the popular Kryptonite Bike Locks found that Chicago has the second-highest rate of theft in the country - behind New York City.

Unlike stolen cars, few bikes are chopped up for their parts.  Instead many stolen bikes end up at flea markets, or pawn shops, across Chicago.  Some are posted at Craigslist Chicago.  A few of the pricier models will post on EBay, for big bucks.  Most buyers don't even know these often-repainted bikes, with their serial numbers removed or altered, are HOT!

A heavy-duty bar lock, like the U-Lock, is the best protection for your bike on the street.  It's solid steel design makes cutting extremely difficult - nearly impossible, for most - although some sophisticated thieves have found ways to duplicate the U-Lock's cylinder keys.  The majority of cable or link chains - the kind we used when we were kids - are easy to cut with a bolt cutter.

To render your bike not immediately ridable, fasten your bike tightly to a bike rack or post, and remove the front wheel or seat   Highly-visible bike racks might deter less-experienced thieves - but always try keep an eye on your bike, whenever you can.

Register your bike with locally- and keep a record of the bike's serial number!  (Experts suggest you engrave the serial number in a secret place on your bicycle, so you can easily identify your bike should it be recovered - top thieves grind off easily-visible bike serial numbers). 

Should your bike be stolen, register it on the Chicago Stolen Bike Registry, and on Craigslist - so potential purchasers of resale bicycles could determine whether they are buying stolen property.

Be careful, you dogs, when parking your bikes while running off to handle important business!   A little caution will ensure you'll have your bike around all summer.

And be safe, too!  Just a tip from Officer Buddy!

See my post @ BlogChicagoHomes.com for more info.

YOUR ACE REPORTER ON FOUR PAWS,

BUDDY HOLLY MOSS & DEAN'S TEAM CHICAGO

Findings from the Quarterly Survey of Home Prices, published by the Federal Housing Finance Board, show First Quarter, 2008 Chicago Average Home Prices increasing by 16.4% over the First Quarter, 2007. 

Although the Chicago Real Estate Market is very large and diverse, and contains numerous pockets of varied growth or decline, the Average Home here cost $341,500 at the end of March, up from a year-ago average of $293,400.

Based on the survey data, Chicago is now the ninth most expensive real estate market in the U.S. based on the average price - ahead of the Boston MA Metro Area.

Nationally, the Average U.S. Home Price increased 0.8% within the past year - to $320,500, from $318,000 one year ago.

There is a difference of opinion as to which price range levels are experiencing the stongest price variance versus March, 2007.  Zillow.com, with it's "Zestimates" automated valuation formula, projects that the biggest price declines, as a percentage, have occurred in the highest 20% price tier.

LaVaughn Henry, Director of Economic Analysis for PMI Mortgage Insurance, however, believes price declines have been strongest for less-expensive homes.  He quotes S&P/Case-Shiller Housing Price Estimates from their latest Tiered Pricing Study, covering 17 of the biggest U.S. Metro Markets.  The reason for the sharp drop off in lower-end homes in 12 of the 17 markets studied, he feels, might be attributable to the decline of sub-prime mortgages.  In recent years, many lower-end property buyers used sub-prime loans to finance their home purchases.

See our post today at BlogChicagoHomes.com for data on average price changes for other selected markets.  It links to Lew Sicheman's story in The Chicago Tribune from last Sunday, May 26th, and even more detailed Average Home Price information.

DEAN & DEAN'S TEAM CHICAGO

Since the beginning of 2008, Fannie Mae and Freddie Mac began to score U.S. Zips and Market Areas into those showing stability, and those in decline, based on sales price and units sold statistics versus last year.

Although few declining market areas have been identified here in Chicago and our suburbs, the effect has been devastating for some buyers. 

Having an appraisal with the "Declining Market Area" box checked, as has happened recently on one of our condo sales in the West Rogers Park Neighborhood of Chicago,  often resulted in a required "down payment premium" from the lender - usually, 5%.  Many times, the bad news didn't come to the buyer until right before a contract Loan Commitment Date.  At that time, for many, it was hard to come up with the additional down payment required by the lender.   The transactions often fell.

Effective June 1st, however, in an attempt to stimulate weak real estate markets across the country, Fannie and Freddie are suspending the use of the "declining market" scores indefinitely.  No matter the sales trend in a particular local market, the large U.S. Loan Funding Organizations will approve loans up to 97% of purchase price - subject to underwriting requirements, but not subject to the old "declining market" label.  Last minute increases would not be required!

Cry "hooray?"  Sadly, not yet!

The major Private Mortgage Insurance companies, who insure lenders for their risks in offering loans with LTV less than 80%, are not on board.  Despite pleas from senior Fannie Mae and Freddie Mac management, PMI companies will continue to use geographic market rankings to affect their decision as to whether to insure certain mortgage loans.  In some cases, the application of declining market data will actually EXPAND, to effectively exclude certain types of higher-risk mortgage loans.

MGIC, the highest-volume MI Underwriter in the U.S., and it's Senior Vice President, Michael J. Zimmerman, said his firm is "not contemplating any changes."  Further, MGIC recently expanded its list of declining markets.  It also drastically cut back its mortgage insurance offerings for certain higher-risk, lower-equity loans.

PMI Group,another major PMI Company, has stopped insuring cash-out refi's or investor loans in areas on its proprietary "distressed zip code" list.   Mortgage Insurer AIG United Guarantywill no longer provide coverage to lenders on condominiums in hundreds of "declining market" ZIP codes.

Asked whether his firm might re-evaluate its declining markets policies in response to the changes at Fannie Mae and Freddie Mac, Genworth Financial spokesmanTerry Souers responded, "we will take them into consideration to see if additional steps are necessary."

Many Real Estate Practitioners feel that the initiative taken by Fannie Mae and Freddie Mac is long overdue in today's sluggish real estate market in many areas of the country.  Without cooperation from U.S. Private Mortgage Insurers, however, most low-down buyers will still have problems obtaining their home loans, and closing on their purchases. 

FHA Guaranteed Loans might be an option for some, but not all, of these low-down-payment borrowers.

See our post today @ BlogChicagoHomes.com for more, as well as a link to Kenneth R. Harney's article in the Sunday, May 26th Chicago Tribune's Real Estate Section.

DEAN & DEAN'S TEAM CHICAGO

Crazy weather here in Chicago these days, folks!  Yesterday - 84 degrees, sunny!  Today - 46 degrees, super-windy, gray and cloudy!  They say Summer will be here before you know it.  Many of us in Chicago are beginning to wonder!

If you read the news on the web, and listen to many Mortgage Professionals, you might think FHA Loans are the "silver bullet" to bring around the housing market.  Have a low down payment, less than perfect credit?  Try an FHA loan!

Have no down payment?   The FHA liberal gifting rules allow for even the SELLER to contribute to your down stroke - subject to certain guidelines, of course.

Declining Market Zip Codes from Mortgage Insurance Companies?  Ultra-closing costs?  NOT WITH FHA!

But all s not perfect in FHA land!

Many FHA loans have personal reserve requirements that are somewhat inflexible.  And their Mortgage Insurance Premium, although it can be blended into your mortgage amount, is sometimes higher than Conventional PMI.

FHA Appraisal Requirements are still very tough - the three FHA sales we completed this year each had a lengthy list of mandated repairs which needed to be completed before closing.  GFIC Electrical Outlets.  Properly-positioned light switches. Maximum roof layers - even for properties sold in distress.

And a real crazy one - peeling paint must be removed and repainted!  Even if there is no chance of lead based paint - for newer properties constructed way after the 1978 Lead Paint ban.  Even it's the middle of winter and any new paint would flake off within days of closing.  It doesn't matter - rules are rules, the appraiser would say!

In this market, many properties are sold in distress situations.  The seller, often facing a short sale or pre-foreclosure, has no excess money to complete FHA-Mandated Repairs.  Sorry - no choice!  No repairs, no sale - irregardless of the discounted price the property sold for!

As they have in the past, many home sellers balk at accepting an FHA-financed loan!  They are afraid they will be bullied into making costly repairs to their home in order to sell.  No flexibility here - again, no repairs, no sale.  And the buyer's offer is summarily rejected.

Resale condos offer the biggest challenges!

The FHA Spot Approval Checklist, via Mortgagee Letter 96-41, written in August, 1996, effectively disallows loans to any condo association with the "Right of First Refusal" on new sales.  Most newer condo declarations deliberately avoid "First Refusal" language. 

But a few of them still have it, including one North Side Chicago Development whose builder decided to put such language in his documents four years ago, to, "avoid the riff-raff that many FHA borrowers are!"  (Believe it or not, that is what the developers Property Manager told me!) 

Fact is, in 2004, when this particular condo project in the Albany Park Neighborhood of Chicago was converted, most low-down-payment borrowers avoided FHA, instead opting for Sub-Prime. 

Anyone find a decent high-leverage, sub-prime loan lately?

New Condo Projects must be at least 90% sold for Spot Approval.  At least 51% Owner Occupied.  Have no more than 10-20% other FHA borrowers within the same project, depending on its size.  No additional phases planned.  No special assessments planned or under consideration.  And a minimum one year since the Condo Board was established.

Any waiver to the slightest variance of these rules?  Nope - according to the FHA Resource Center.  NO FLEXIBILITY.  Sorry - look at another building!

In 2008, we ended up closing ONE FHA transaction so far - only after the Seller re-painted gutter trim, updated GFIC Outlets, and replaced his Roof - all in the middle of winter, at a cost of over $5,000.  Despite the fact he sold at a very low price, in distress.

In the second FHA deal - another single-family home - the seller agreed to settle on normal inspection repairs, but refused additional repairs mandated by the FHA Appraiser.

Our third deal just died - the condo has a special assessment for masonry work, which will be paid in full by the seller at closing.  No dice, however - no special assessments for condo projects being considered for FHA financing.

In the case of many FHA loans, the borrower has no choice but to not buy the home or condo.  In the olden days (say, 2005), lenders would routinely waive or "bend" certain requirements to get the loan funded.  Some of these should never have been done, in retrospect.

But what we have now seems to be the opposite end of the spectrum!

I'm sure, on many transactions, FHA-guaranteed transactions go smooth as glass!  However, here in Chicago, and on our Team - we haven't seen any of them yet!

Here is the HUD Website with links to detailed guidelines for the valuation of homes and condos under FHA standards.

Any thoughts, experience, or advice for a somewhat perplexed Real Estate Practitioner trying to sell a few affordable properties to modest-income families?  Would love you to share!

DEAN & DEAN'S TEAM CHICAGO

Good Morning! 

Enjoy your Memorial Day Holiday, and please take some time to remember the meaning of today.  Many in service of our country have sacrificed their lives to make sure we continue to live free!

Here's the latest Stat Summary on the Chicago Real Estate Market, based on data pulled yesterday evening, May 25, 2008 -

Active Listing Inventory fairly stable from last week.  Although Units Pending Sale ("Just Sold"), was fairly flat compared to last week as well, the number of Sold Units increased by nearly one-third.   Expired Listings were up as well - unsure if this is a trend, or an indication that too-highly-priced listings fail to sell in this market.   Average Sales Priceseems to be roller-coastering up and down over the last few weeks, while Sales Volume showed a very significant, nearly 50% increase, week-to-week, due to more Sold Units.   Average Market Time still stubbornly high.

Absorption Rate, or average inventory turnover, stable versus last week, but still continues high, in aggregate, on the North and Northwest Sides of Chicago.  Currently, the area Absorption Rate continues just under 29 months.

Percentage of Sale Within Six Month (180 Days) got slightly worse this week, and is still very low - reflecting continued-high Average Market Time figures. 

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 May 25th              5,193                  64                      81                   46

Please visit and review our Chicago IL Real Estate Stats Pack Archive via our Team Blog Center - BlogChicagoHomes.com. 

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

DEAN & DEAN'S TEAM CHICAGO

We hope you're enjoying your Memorial Day weekend!  Please take a minute or two to remember those who sacrificed bravely for our country.

Despite the recent downturn in the Chicago Real Estate Market, we have found that the downturn has not affected all areas of the city and suburbs equally.  Indeed, those working in real estate in other larger U.S. Cities seem to be experiencing the same pattern as well.

Here in Chicago, our Downtown Neighborhoods - The Chicago Loop, The West and South Loop, River North, and parts of The Gold Coast are experiencing stable prices, and, in some specific areas, modest growth over the last twelve months.  Indeed, a few of our homes have sold in multiple offers in 2008 - although the market time to get them to that point is often high.

Outlying Chicago Neighborhoods have shown far higher market times for our listings, and lower eventual sales prices than we would have predicted.

The San Francisco, New York, Boston, and Los Angeles Metro Marketsare showing similar patterns of decline in the Metro Area, but growth in some popular in-city neighborhoods.

See our post today @ BlogChicagoHomes.comfor more detail, as well as a link to John D. Opdyke's story in the May 20th Wall Street Journal.

DEAN & DEAN'S TEAM CHICAGO

Good Morning, folks!

Dean's Team just took a new Chicago Loop Condo listing that typifies living in Downtown Chicago - right in the prestigious River North Neighborhood - just north of The Chicago Loop!

The New Chicago Trump Tower, and our famous Terra Cotta Wrigley Building are just steps away, as is a Secluded River Walk right along the Chicago River.  It is close to all the spark, the energy, and the excitement Chicago has to offer, and also near all Expressways and the CTA Red Line L and Express Buses on the Magnificent Mile, Michigan Avenue.

In NYC, you couldn't even DREAM of owning a 45th Floor, Spectacular-View Condo, with an unobstructed River View for anything less than a Big League Baseball Player's Salary.  But here, you'll get a fabulous Chicago River and Classic Skyline View for only $267,500!

Tandem, Heated Garage Parking Space, with direct condo access, also available - room enough for two large SUV's - for $67,500!

Click on our BlogChicagoHomes.com Blog Center for more info, and a link to full listing detail via our dean-team.com website.

We'd love to have you live here - especially when the weather is WARM, and the Chicago Cubs are WINNING!

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!

One of the Annual Rites of The Great Chicago Summer is ready to roll, you dogs!

Chicago's 26-miles of Beautiful Public Beaches, right on Lake Michigan, open for swimming on Friday, May 23rd.  They will stay open, between 9AM and 8:30PM, through Labor Day, September 1st!

Here's a BIG CHANGE since last summer - NO SMOKING ALLOWED on any Chicago Beach!  The fine for taking that drag within 15 feet of Chicago Golden Sand - up to $500!

That's good news for us Little Dogs - who often singe our soft little paws on those cigarettes smokers discard, but fail to completely put out!

It's supposed to top 80 degrees in Air Temperature on Sunday and Monday, Memorial Day.  Before you scamper off into that inviting Lake Michigan water however, remember one thing - it's only 58 degrees now, according to a temperature reading taken today of Chicago's famous Oak Street Beach.  The water temperature is not expected to reach the far-more-comfortable mid-60's until July 4th, or possibly later!

So stick your right front paw in slowly this weekend - test the water, before taking the plunge!

Enjoy your Memorial Day Holiday!

See my post today via BlogChicagoHomes.com to read more, and for a link to Robert Mitchum's story today in the Chicago Tribune.

YOUR ACE REPORTER ON FOUR PAWS,

BUDDY HOLLY MOSS & DEAN'S TEAM CHICAGO

The more things change, the more they remain the same, and you know it to be true -

Price a house for sale correctly - not too high, not with "Negotiating Room" - and it will sell faster, and for a better price, than if you "Tested The Waters" too high!

Have you ever run into the rare situation where a home seller feels that THEIR HOUSE is better than any other house on the market?  You'd be surprised - we here this in Chicago all the time!

Back in the Old Days - let's say, 2005 - pricing a property a little high might have increased the time necessary to generate a Contract for Sale from, say, a couple of weeks, to, perhaps, a month or so.  Market prices in many Chicago Neighborhoods and Suburbs often increased on a monthly basis.  Often times, even those priced a little high just needed a slight price adjustment to make them quickly saleable.

But now, here in the City of Chicago and most suburbs, pricing a home too high can actually add considerable market time, and may actually reduce its eventual selling price!

James R. Knight, a Real Estate Professor at The University of The Pacific in California, cited a late-1990's survey out of Stockton CA, in the northern part of the state.  It indicated that homes with repeated price reductions took longer to sell, on average. 

Once these too-high homes did go Contract Pending, and evenutally sold, the average sales price was 9% less than homes priced right from the start.  Knight continued, "This was during a time when the market was stable; I suspect there would be bigger drops now."

Here in Chicago, an agent from one of the big Downtown Chicago Condo Brokerage Companies explains the web, and its "Saved Home Search" function, similar to the one found on our Dean's Team Web Center, feeds new listings in a buyer's price range on a regular basis every day via email.  Overpriced homes are out of place, and easily spotted - or they are completely missed by prospective buyers because these homes are out of the buyer's target price range.

Indeed, homes overpriced often drive traffic to homes in the neighborhood priced correctly.  Prospective buyers often schedule showings on these pricey places, and then buy a home more market-priced, as they see no additional value in the home priced over-market.

Check out our post today @ BlogChicagoHomes.com for more info, as well as a link to Marilyn Kennedy Melia's article in last Sunday's Chicago Tribune.

DEAN & DEAN'S TEAM CHICAGO