"You've Caught the NET!"

Hope you're enjoying your Labor Day Weekend, Rainers!

Are you familiar with the Kenwood Neighborhood on the South Side of Chicago?

If you were, you might have driven by this beautiful, 1898 Colonial on the 5000 Block of South Greenwood Avenue, off Hyde Park Boulevard.   If you were to drive there today, however, you would have to observe it from quite a distance back.

This is Barack and Michelle Obama's restored home!  (Photo, and linked description, courtesy of Mark2400 Photo Stream, Flickr.com).

This April, 2007 photo shows little external security.  As you might imagine, security around the historic home has been considerably beefed up recently, now that Mr. Obama is the official Democratic Nominee for President.

The Obama family house is large - nearly 6,200 square feet, and sits on a quarter-acre lot - which is pretty big for a parcel of land in the City of Chicago.  Obama purchased the home back in June, 2005, for over $1.6 Million.

As security has increased near the home, less-affluent neighbors in this diverse Kenwood Neighborhood have had to navigate around the increased security.  Last week, additional concrete barriers and parking restrictions were put in place near the home.  A wrought-iron fence already circles the home, but this has been augmented by additional steel barriers earlier this week.

Law Enforcement Officials here have declined to comment on the new security added, referring any questions to the U.S. Secret Service.  As you would imagine, these folks have been closed-mouth as well!   "Any visible changes in security will be coordinated with the Chicago Police Department and other city officials. We will make every effort to ensure that any adjustments in security affecting area residents will be as unobtrusive as possible."

Still, neighbors have had to make adjustments.  Many neighborhood residents now have to park their cars several blocks away from their homes, and their visiting families and friends have difficulty finding close parking spaces when they stop in.

Said Tamieka Smith, an Obama supporter who lives nearby, "My mother had to park four blocks away yesterday when she came to my house. It's an inconvenience, but he needs the extra protection. Imagine how it will be if he wins."

That's right, I guess . . . one can only imagine!

But would The Obama's still keep their home here in Chicago?  Many neighbors hope so - and they'll bear with the inconvenience.

See our post @ BlogChicagoHomes.com for more info, as well as a link to Deanese Williams-Harris and Steve Schmadeke's story 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!

Are you dogs gonna ROCK this Labor Day Weekend?

Here in Chicago, we've got perfect weather, and a winning Chicago Cubs team.  Enjoy - but don't eat too many bratwurst!  Indigestion - and worse - you all know!

Our newest member of Dean's Team Chicago, my new Pup Reporter, Gracie Moss, spent a lot of time yesterday discussing Adoptions of Orphaned Pets.  As you may imagine, this is a very important story for the two of us - and should be important to you, too!

As you know from our post last week, Dean & Sue picked up our Gracie from a private breeder on the Southwest Side of Chicago.   But, often, many would-be dog and cat owners often head to the local animal shelter to find their new pets. 

For many humans adopting orphaned pets, however, the process can be pure intimidation - and many otherwise-qualified pet owners can be screened out without much of a reason.

Take the case of Katie P.  She's a 22 year old human lady from the North Side of Chicago who, with her boyfriend, recently went to a North Side Animal Shelter to find a new dog. 

When they found a cute border collie-beagle mix, they both fell in love, immediately.  However, the shelter's volunteer clerk sensed they were "too young" and "not responsible."  They were soundly rejected, very depressed, and are now looking to adopt from a professional dog breeder.

Many prospective pet adopters company that shelters use an Adopter Qualification Process, that can, at times, seem like the Spanish Inquisition!  Often, the agency requires extensive applications be completed, apartment leases and condo rules be attached, and home visits scheduled.  Sometimes, potentially-leading open-ended questions are asked - "If your new dog pees or poos on your new living room rug, what would you do?"

(Team Leader Dean and our Mega Mommy Sue already know the answer to that question - that's why Dean seems to be losing more hair each day Gracie has been here, and Mommy is more tired at the day!)

Each year, three to four million pets are adopted at animal shelters each year across the U.S., according to the Humane Society of the United States.  About an equal number are put down, for lack of a qualified adoptive family.  Many animal advocates strongly feel the number of shelter animals euthanized can drop dramatically if more common-sense adoption rules are put in place.

 "It's hard to get it right," conceded Jamie Damato, a 20 year animal shelter veteran around Chicago.  "There's no question that these organizations have the best interests of the animals at heart, but they shouldn't be playing God."

Many operators say the scrutiny is essential to ensure that the pet is safe and won't be returned.

"You have no idea how traumatic abandonment is for animals," said Jim Borgelt, President of the Chicago Animal Shelter Alliance, a coalition of 15 "no-kill" shelters. "Of course, we want animals to find homes, but we don't want to do it without any regard for the end result."

Alliance shelter members adopt between 14,000 and 15,000 dogs and cats annually. Of those,  roughly 750 are returned.

Many feel, however, that shelter screening has indeed become too strenuous.  Emily Weiss, who has a PhD in animal behavior and is a senior director with the American Society for the Prevention of Cruelty to Animals (ASPCA), was once rejected by a shelter.

However, the adoption rules might be coming down to earth a bit.  In Washington DC, required home visits pre-adoption have been dropped.  Here in Chicago, our own Anti-Cruelty Societyhas stopped rejection of prospective cat owners considering to have their new pets declawed.

In 2007, the Chicago Anti-Cruelty Society placed 5,775 pets into new homes, and rejected less than 5% of all applicants.

To ensure a good fit of pet to family, the ASPCA and Weiss developed an assessment tool called "Meet Your Match".  The test identifies certain personality traits in both animals and humans. If you work at home, for example, you might not want a "personal assistant"-type cat who will be in your lap and on your keyboard.  Or, if you don't have the patience to pick up Puppy Poo, you might not want to adopt a little brown Peke named Gracie!

At five test sites, the program reduced feline euthanasia by 40% and increased adoption by 50%, according to Weiss.

Despite recent changes, however, many pet owners say the decision whether to allow an adoption still seems to turn on demographics, such as occupation, marital status, living in an apartment or not having a fenced yard.

Some prospective adopters complain of shelter volunteers getting almost "parental" in explaining how to take care of a dog or a cat.  Others feel they were inappropriately screened out based on insufficient income.  Many give up attempting to adopt from a shelter, instead opting for a private breeder.

Well, you know where Gracie and I stand, paw to paw, on this issue!  Anything that reduces the number of unwanted pets that need to be put down each year because nobody wants them is worthy of consideration, and of refining the screening process for pet adoption, as necessary.

But what say you?  Bark us a line!

And see our post from yesterday at BlogChicagoHomes.com for more info, as well as a link to Bonnie Miller Rubin's article in last Sunday's Chicago Tribune.

YOUR ACE REPORTER ON FOUR PAWS,

BUDDY HOLLY MOSS & DEAN'S TEAM CHICAGO

(Along with his PUP REPORTER - GRACIE MOSS)

Greetings, AR!

Here's some Chicago Neighborhood News for this week, courtesy of our Team Member, Jennifer Arcand.

Each week, we'll post news from select Chicago Neighborhoods and Suburban Chicago Communities.  If you have anything you'd like to add, please send it to us in an email.

ROGERS PARK

According to CTA officials, a likely extension of the Yellow Line north from Dempster Station in Skokie would either be rail or bus along an existing right-of-way or a bus along Gross Point Road and Skokie Boulevard. 

A crowd of about 50 in Skokie were told that the options were narrowed from 11 possibilities and the extension would go no further north than Old Orchard Road.

The Yellow Line currently consists of two stops: the Dempster Station in Skokie and the Howard Station in Chicago's Rogers Park, connecting to the Red and Purple lines.  A new Yellow stop has been approved for Oakton Street in downtown Skokie with construction set to begin in 2009.  Click here for the entire article.   

UPTOWN

Borders Uptown located at 4718 N. Broadway has listed their top five selling books. 

You May Have Heard About Her, by Stephenie Meyer (Little, Brown,) series and in order of popularity are the top four books:

Breaking Dawn - The fourth and final book in the young-adult "Twilight" series about a teenager and her vampire boyfriend.

Twilight - The first book in the young adult series featuring vampires and romance.

Eclipse - Book No. 3 in the vampire love saga for young adults.

New Moon - The sequel to "Twilight" continues the story of Bella Swan and her vampire boyfriend, Edward Cullen.

Watchmen by Alan Moore and Dave Gibbons (DC Comics,): A graphic novel first published in 1986 touches on Cold War and nuclear arms race themes.

Click here for more information. 

EDISON PARK

Graduates of Oriole Park School's Class of June, 1958 had a chance to come back and discover what's new about their old school during their reunion.

"When I walked in the door, I realized how linked this community is, and how it supports the school," said Assistant Principal Kenneth Fitzner.  "Having community groups to partner with the school is unusual.  The achievement at the school is phenomenal -- we're the number two neighborhood school in the city.  We get tremendous families moving into this area."

Among some of the enhancements made were the following:

• A revamped music program now offering students hands-on exposure to guitars and keyboards, and expand fine arts and drama.
• Oriole Park was one of the first schools in the city to add a Chinese language curriculum.
• With the regional gifted center move out of the Edison (Park) school building this year, Oriole Park School has inherited equipment from one of the former science labs and converted two classrooms into a new science lab where the curriculum can add more hands-on experiments.

Click here to read more.

OAK PARK

With almost every new discovery of the emerald ash borer comes a swift extermination: infected ash trees are removed, tossed in a wood chipper and used for mulch.

The pesky insect turned up for the first time in Chicago in June, and recently has been discovered in River Forest, Burr Ridge, Oak Park and Sugar Grove.

But even as the metallic green pest has broken the hearts of tree lovers, its victims are being recycled and used in everything from Little League baseball bats to renewable energy.

This weekend, the Morton Arboretum in Lisle will present an exhibition featuring furniture made from infected ash trees across the Chicago area.

Click here for all of the details.

Enjoy the Labor Day Weekend - safely!  Let's catch up on Chicago Neighborhood News again next week.

Here's a link to my Chicago Neighborhood News Archive via the Dean's Team Blog Center, BlogChicagoHomes.com.

JENNIFER ARCAND & DEAN'S TEAM CHICAGO

Hello, fellow AR folks! 

We're in a good mood here in Chicago, as our beloved Cubs pulled a come-from-behind victory over the Philadelphia Phillies.  The win came in dramatic fashion, as Cubs Third-Baseman Aramis Ramirez belted a Grand Slam Home Run in the 8th Inning. 

Wow - my head is still spinning, and I was there!

Walking the six blocks home, I kept thinking about a Chicago Tribune article I read today, saying that, even now, many Chicago and Chicago Area Homesellers still think the sluggishness of the real estate market here is grossly overstated. 

Indeed, many presume, prices have not fallen as much as some in the Real Estate Community have led me to believe.  And even if they have - my property is DIFFERENT!

This attitude creates a bit of a problem for the Chicago Housing Market: stubborn sellers keep their prices too high - there are often more than enough desperate Real Estate Practitioners that will agree with them, for a signed Exclusive Listing - while buyers continue to wait on the sidelines waiting for prices to fall further.

Perhaps in markets where real estate has risen then fallen - places like Northern California, Las Vegas NV, and parts of Florida - sellers have "gotten religion" already.  But, apparently, not as much here, where the price rise was not quite as dramatic during the boom times of a year or so ago, and the fall no where near as precipitous.

Chicago MLS Data for the nine-county Chicago Metro Area (from Midwest Real Estate Data LLC) indicates the number of closed transactions between January and July, 2008 have fallen 30% in aggregate since the same period last year.  At the same time, median sale prices have barely budged market-wide, from $250,000 last year, to $247,500 now.  (Of course, all real estate is local - many Chicago Neighborhoods and Suburbs have seen more solid price increases year over year, while others have experienced sharper declines).

During the same comparison period, Average Market Time for single-family homes and condos has increased by roughly 30 days!

When local sellers compare the relatively-stable Chicago Median Prices to the 15.4% median home price drop nationally, they become even more determined to stick it out for a higher price.

It's not just plain ole' stubbornness at work here!

Those who purchased with low-down-payment financing in the past few years have seen their home values go down, and, in many cases, their outstanding mortgages exceed the value of their home today.  They price their home at the high price they feel they need, with enough left over to cover selling costs, and make a small profit for themselves.

The trouble here - the house or condo is only worth what a buyer is willing to pay for it, and no buyer really cares what a seller's previous price of financing level was.   Yes?

From an opposing point of view, as in virtually any market, properties priced aggressively, and at or below today's market level, continue to sell quickly.

This past spring, Anna Colavitti priced her townhome in the Chicago IL Suburb of Schaumburg at $168,000 - roughly 10% less than what similar units sold for in 2007.  She considered two offers, in multiple-bid, within the week, and accepted a cash offer of $165,000 on her unit.

She then started looking for homes with a history of price reductions, thinking she would be able to negotiate a better price on homes on the market awhile, and reduced several times.

Last May, she made a successful offer, in competition with another bidder, for a three-bedroom, two-bath home in Schaumburg.  She offered the current asking price of $300,000 - and got the home!  Subsequently, the home appraised for $307,000 - so she enjoyed some immediate home equity. 

Now, in late Summer, 2008, more sellers are beginning the reality of pricing correctly in today's real estate market.   However, far more stringent lending standards than existed even a few months ago, coupled with slightly higher interest rates, escalating prices for food and fuel, and many consumers worried about the stability of their jobs and the economy, have thinned the ranks of potential buyers.

Will the Real Estate Ship right itself?  How soon?

Absolutely!  At some point, inventories will fall, as prices do.  New loan programs, perhaps with a little help from the government, will become available so a broader, but not universal, spectrum of home buyers can find financing.  Folks will realize that real estate is really THE BEST, LEAST RISKY investment, mid and long-term.

But experts do not expect this to happen quickly.  So keep those seat belts fastened!

See our post today @ BlogChicagoHomes.com, as well as a link to Mary Ellen Podmolik's article in last Sunday's Chicago Tribune, for more info.

DEAN & DEAN'S TEAM CHICAGO

They appear to be from a different age! 

Rolling Bar Cars in the middle of afternoon-rush-hour METRA Commuter Trains, radiating to Chicago Suburbs around quitting time!

I worked at a Downtown Chicago Ad Agency BRE (Before Real Estate), and, years ago, knew these bar cars all too well, often to my regret the following morning.  (METRA also had Smoker Cars as well, but these are very long gone!)

Both were rowdy, jovial places where folks can enjoy a cocktail, bottle of beer, or glass of wine, or two or three, before heading home to their families and children.

Sounds like a scene from that AMC TV Series Mad Men, doesn't it?  In that show, New York Ad Execs from the early 1960's spend their workdays heavily drinking and smoking, yet still turn out a strong creative product.   The characters were a few years removed from the dangers of excessive drinking and the health hazards of smoking, I guess.

Effective this Friday, however, the METRA Chicago Commuter Rail Traveling Taverns will make their last call, as the transit agency will pull Bar Cars from the remaining ten afternoon trains on which they appear. 

Fret not, those of you who like to imbibe on a moving train.  It will still be legal for adults of age to carry on a cocktail purchased at Union or Northwestern Station downtown, or at establishment near any commuter rail station in Chicago or the suburbs.  You just won't be able to PURCHASE the beverage on the train.

There appears two reasons for the Bar Cars reaching the end of the line.

First, METRA officials are becoming increasingly concerned that some riders enjoy a few while commuting, then become impaired drivers when they hop in their cars for the final ride home at their destination stop.

Second has to do with pure space available for passengers.  Removing the bar car, they feel, could free up space for additional train passengers, as ridership on METRA Trains, Chicago Transit Authority El cars, and buses have been surging as the price of gasoline around Chicago has climbed.

Also, the bar service has been set up in one car's vestibule, where the entry and exit doors to that car normally would have been located.  Indeed, bar car patrons have to board the train in another car, and then change cars to get to the bar car.   New Federal Safety Regulations require exit doors on all cars, and discourage changing cars while the train is moving.

After Friday, only New York City will offer traveling bar cars on a U.S. Commuter Railroad.   Bar service will still be available on select commuter trains on the Long Island and Metro North commuter rail service there.  A plan by the New York Metropolitan Transportation Authority that would have banned alcoholic beverages on trains has been dropped, for now.

Read our post today @ BlogChicagoHomes.com for more info, and a link to Richard Wronski's story in today's Chicago Tribune.

Salud!

DEAN & DEAN'S TEAM CHICAGO

Hey - where's the bottom of the housing market?  Precisely, now, when will it occur?   Or, has it occurred already?

In Chicago - we don't know when it will bottom, and all indications are it has yet to happen.  Things are brightening up a bit here, it seems, but we still have a way to go.

Across the country, sales of existing homes rose 3.1% for July, 2008, versus June - to an annualized rate of  5 Million Units, from 4.86 Million Units the prior month.  However, the national inventory of homes for sale increased 3.9%, to 4.67 Million - an all-time record!    The National Association of Realtors pegs the inventory at an 11.2 month supply - nearly double the approximate 6-month "balanced inventory" level.

Here in Chicago, in the North and Northwest Side Neighborhoods we serve most often, recent inventory levels exceeded 28 months!  (See our latest Chicago IL Real Estate Stats Pack for more data).

Data from the latest S & P/Case-Shiller Index of Home Prices indicates a drop in Chicago Metro Area Home Prices of 9.5% through the end of June, 2008, from last year.  These dropping prices may be further holding back home sales, as many buyers are still waiting on the sidelines for prices to drop even more. 

Many other buyers would like to purchase, but can't get approved for financing, as lenders have considerably tightened their standards for financing a home.  Here at Dean's Team Chicago, we have encountered five such would-be buyers in 2008 alone!

Although basic supply and demand economics suggests rising inventories would drive down home prices, many experts feel prices have to fall back even more for demand to strengthen, and prices to stabilize.

As we mentioned, mortgage money is getting tougher and tougher to find, as lenders and Private Mortgage Insurance Companies have increased credit score and down payment requirements.

To make matters worse, the Chicago Metro Area, as well as many other metros across the U.S., are defined as "Declining Markets"by PMI Companies.  Often, at the last minute before the closing, buyers are often asked to come with an additional 5% down payment as a "Declining Market Premium".

A flagging U.S. Economy and weakened employment picture is adding to housing market woes.  Non-farm monthly payroll figures have fallen seven consecutive months.  All the while, average 30-year fixed mortgage rates had crept up to 6.43% at the end of July, versus a 6.32% average fixed interest rate at the end of June.

So where are we headed, and when will it end?  If you're thinking of a return to 2005-06 housing market buoyancy - perhaps not for a while!

See our post at BlogChicagoHomes.com for more information, as well as several Wall Street Journal links from yesterday's online edition that will shed more statistical light.

DEAN & DEAN'S TEAM CHICAGO 

Good morning, AR!

Inflated appraisals during the hot Real Estate Market.  I'm sure they occured here in Chicago, and in your market area as well. 

Many experts blame these overstated valuations for a big part of the weakness in the Real Estate Market today.  Overstated values led to phantom equity, which quickly disappeared after things turned sour in housing all over the U.S. 

Many homeowners now owe more than their home is worth today, as the amount of their mortgage loans were based on their supposedly-inflated property appraisals.  Adjustable rate resets compound the problem, as refinancing no longer becomes an option, and selling the property outright, with enough proceeds to pay off the mortgage liens, very tricky, if not impossible.

For as long as I can remember, lenders who order the appraisals give the appraiser a copy of the contract, highlighting the purchase price.  We at Dean's Team always meet the appraiser with a copy of the contract, again with a yellow highlight over the price, plus a few sold comps to substantiate our own opinion of value.  Both our Team members, as well as the lender, agree that it is our duty to help assure the transaction will appraise for at least the contract price, so the transaction sucessfully closes.

The appraisers, of course, need to research their own comps, complete their own analysis of comparables nearby, and finalize their own property valuation independently. 

But are the actions of some lenders, some Realtors, and some homeowners to "persuade" on price valuation going over the top?

Sara F. Schwarzentraub, president of Inter-State Appraisal Service of La Mesa CA., mentions one client left a message on her office phone complaining that, "If you didn't know you couldn't hit what was needed, you shouldn't have taken the assignment." The number needed by the mortgage company employee was $50,000 to $60,000 higher than comparable values in the area, Schwarzentraub said.

Michael Tsourounis, president of Calvert Appraisal and Realty Services, Owings MD, recently inquired about doing appraisal work for a mortgage company in his area.

"The office manager asked me directly: 'If I sent you out to appraise a million-dollar home and the comps only came in at $800,000 ... but in your heart you knew it was worth a million dollars, what would you bring it in at?' "

The intent here, according to Frank Gregoire, immediate past chairman of the Florida Real Estate Appraisal Board and an appraiser in the St. Petersburg-Tampa area, "is really to find out: Will this guy play ball? Will he be cooperative when we need him?"

According to Bill Garber, Government Affairs Director for The Appraisal Institute, "Absolutely appraisers continue to get pressured" to hit valuation number needed to assure a transaction will close.

Gary Crabtree, of Affiliated Appraisers in Bakersfield CA, is concerned about new rules for U.S. Foreclosure Refinancing, to go into effect on October 1st of this year, will require lenders to write down the value of distressed homes to 90% of their market value to help borrowers refinance their home.   Appraisers may be under pressure from lenders to "inflate property values," Crabtree fears, to minimize the lender's potential losses - although Housing Relief Legislation expressly forbids that.

The Immediate Past President of the Florida Real Estate Board, Frank Gregoire, feels the climate of property appraisals will only change if government regulatory officials crack down on appraisers who inflate their property appraisal reports.  That may be starting to happen, he sees.  Many state regulators are cracking down on appraisers who inflate their property reports.  Also, the new Federal Law authorizes the U.S. Secretary of Housing to impose fines and disciplinary action on those who write inflated appraisals.

Folks, what issues have YOU run into with property appraisals - especially, this year?  Do you feel appraisals for properties you list and sell are being unduly pressured to "appraise out," more than before?  Or, is this whole thing being blown out of proportion?  Please share!

For more info, see our post from yesterday evening @ BlogChicagoHomes.com, along with links to Kenneth R. Harney's article in last Sunday's Chicago Tribune.

DEAN & DEAN'S TEAM CHICAGO

Good morning, Everyone!

Here's the latest Stat Summary on the Chicago Real Estate Market, based on data pulled yesterday evening, August 24, 2008 -

Active Listings have continued their steady run, while Pending Sales continue their mid-summer tumble in the North and Northwest Side Neighborhoods in Chicago we serve.

Closed Sales Volume, Units Sold, and Average Market Time showed improvement this past week.  Average Sales Price also improved somewhat.

Absorption Rate, or average inventory turnover, increased 1.6% this week as well, with current inventory in the areas we serve very at 28.5 months now.    Percentage of Sale Within Six Month (180 Days) shows another improvement this week.

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 August 25th             5,259                  43                         84                 46

w/e August 18th             5,260                  55                         80                 58

% CHANGE                     +-0.0%              -21.8%                  +5.0%            -20.7%

CLOSED PROPERTIES DATA

                              AVG SALE PRICE     AVG DAYS ON MKT     TOTAL VOLUME   

w/e August 25th            $398,818               143 DAYS                      $33,441,925

w/e August 18th            $394,483               161 DAYS                      $31,558,708

% CHANGE                     +1.1%                      -11.2%                             +6.0%

THEORETICAL TIME TO CLEAR EXISTING INVENTORY (ABSORPTION RATE) -

w/e August 25th  - LAST 12 MOS - 19.74   LAST 6 MOS - 19.24     LAST 3 MOS - 28.50

w/e August 18th - LAST 12 MOS - 19.68     LAST 6 MOS - 19.19    LAST 3 MOS - 28.95

PERCENT OF HOMES SELLING IN 180 DAYS - 

w/e August 25th  - 26.64% (UNSOLD - 73.36%) 

w/e August 18th - 26.55% (UNSOLD - 73.45%)

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

Review our Chicago IL Real Estate Stats Pack Archive via our Team Blog Center - BlogChicagoHomes.com. 

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

DEAN & DEAN'S TEAM CHICAGO

Hey, gang!

This is troubling, and I wonder if it is happening around your market as well.

In a nutshell, I know of several heretofore successful, Top Producing Realtors, and some lenders, right here in the City of Chicago and the suburbs, actually taking full or part time jobs to supplement their income in today's weakened real estate market here.

A few others are using their entrepreneurial knack to generate income - anywhere from handling apartment leasing and property management, to selling products as independent reps (without actually purchasing the inventory) on the Internet.

Those who have become employed have taken on sales or banking jobs - not making much money, I would assume.  But perhaps they are bringing home a bit of income to help keep things stable.

I'm not talking about the non-committed or part time non-performers here.  I'm talking about a few of those with a moderate to longer track record of success, now apparently frustrated, and getting tight on funds.

Anything like this going on where you live and work?  Please share!

DEAN & DEAN'S TEAM CHICAGO

Man oh man, times have changed in the world of home financing!

A couple of years ago, FHA insured loans were shunned.  Conventional Sub-Prime Loans were as available as the air, to virtually every borrower.  They allowed those with blemished credit and low down payments to purchase virtually any home they wanted to buy - well, almost.

Piggy Back Loans were also the rage! Using the Piggy Back Option, a borrower could take out a large loan for 80% of the home's market value, plus get an immediate second mortgage for as much as another 15%.

Fast forward to today - August, 2008! 

FHA Loans are just about the only loan option for those with as little as 3% down payment, challenged credit, or those needing down payment assistance from family members or government agencies (Down Payment Assistance programs involving sellers making a contribution to a buyer's down payment - from firms including Ameridream, Nehemiah , and others - are scheduled for phase-out by October 1st of this year). 

Here in Chicago, FHA Loan Ceilings have increased to a minimum of $410,000 (for single-family homes), and up to $788,500 for some multi-family properties making more borrowers candidates for the FHA option.

True, FHA has certain property condition requirements, and many condo associations still have by-laws, including a Right of First Refusal, which put a damper on the use of FHA loans.   But, often, the FHA route offers a more secure, competitive-rate option for many.

Indeed, FHA Loan Applications are booming!  Last week, the Mortgage Bankers Association released data indicating nearly one-third of all new loans involve FHA or other government-insured financing.  One year ago, these loans accounted for only 8% of all new loans originated.

Many financing out of resetting adjustable rate sub-prime loans are also going the FHA route.  Since June, 2007, FHA-insured re-fi loans have jumped 260%!

For more info, as well as a link to Mary Umberger's column in today's Chicago Tribune, view our post today at BlogChicagoHomes.com.

DEAN & DEAN'S TEAM CHICAGO