"You've Caught the NET!"

Good Morning!

Here's our update on Chicago IL Real Estate Market Statistics, based on data compiled and reviewed Sunday Evening, November 22nd 

Stability seems to be the key in most indicator numbers this week.  In the North and Northwest Side of Chicago Neighborhoods we frequently serve,  Active Listings Inventory showed little change.  Pending Sales fell - predictable as the Thanksgiving Holiday approaches. 

Average Sales Price and Average Market Time held about steady, while Sales Volume gave back last week's gain, and a little bit more.   Units Sold figures were flat, while and Listings Expired jumped - perhaps, by design, as the holidays approach. 

Absorption Rate - the theoretical time to clear existing homes-for-sale inventory, continued its declining trend.  It is now just short of 9.3 months - a very, very encouraging trend. 

The Percentage of Homes Selling in an Estimated Six-Month Marketing Time Frame increased once again last week - it is now over 52%!

Here are archived annual Chicago Neighborhood Statistics, including Units Sold and Price Trends Data, for 1995 through 2008 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 November 15th        3,725                   35                    84                53

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!

DEAN & DEAN'S TEAM CHICAGO

It wasn't all that long ago that Condo Buyers here in Chicago, and across the U.S., had many financing options available.  As recently as a couple of years ago, buyers with marginal credit could put low - or, sometimes, no money down.   Stated income and piggyback loans prevailed.

For those with less than the customary 20% down payment, financing using funds backed by FHA, with its myriad of rules for approval, was a less attractive option.

Today, however, condo buyers have far fewer options.  Perhaps, no options if they have somewhat blemished credit, and little down payment.  Other than FHA Financing.

FHA Loans require as little as 3.5% down.   Many closing costs - including the roughly 1.9% Mortgage Insurance Premium - can be financed into the loan. Buyers purchasing single-family homes are subject to appraisals which often mandate basic repairs - serviceable roofs and mechanical systems, no peeling lead paint or broken windows.  Usually, the seller of such detached homes makes these repairs prior to closing.

Condo buyers, however, often have the building in which they are purchasing very carefully scrutinized.  The building has to be financially solvent.  Have good reserves.  No pending lawsuits or special assessments.  And, under a long-standing rule, there can be no Right of First Approval by the Condo Association in order to get a building approved for FHA.

Under rules originally approved to take effect earlier this month, since moved to December, and again until next February 1st, the Right of First Refusal Requirement will be waived. 

An old process of Spot Approving specific condo units in cases in which the entire complex does not have prior approval will be eliminated, in favor of a new system of complex-wide approval by FHA Authorized Direct Endorsement Lenders. 

Changing the FHA rules too soon, administrators feared, might confuse an already struggling condo sale market.

It is hoped these two changes will streamline the process of obtaining an FHA loan - at this point, the only viable low-down-payment option.

But, as reported in last Friday's Chicago Tribune by Real Estate Columnist Mary Ellen Podmolik, other changes will make the FHA Borrower Approval Process a bit easier right away.

Under previous rules, no more than 10% of the units in complexes with more than 30 units could be encumbered by an FHA Mortgage.  Effective immediately, that maximum concentration has increased to 50%, through the end of December, 2010.  In certain cases, up to 100% of the units could have FHA Financing - although requirements for such approval are quite stringent - read the U. S. Department of Housing and Urban Development Mortgagee Letter 2009-46-A for specifics.

Each complex must be at least 50% owner-occupied for approval.  A new refinement - incomplete buildings need show that only 50% of the pending sale units, or those sold prior to completion of construction, have been sold to owners planning to live in their new units.

Finally, under old FHA Rules, for a new condo construction or rehab project, 90% of the units in a complex had to be sold in order for the building to qualify for spot approval, and the association itself would have had to be turned over to management of the new condominium association for at least one year.  That rule has now changed to 30%, although it will increase to 50% beginning January, 2011.

Here in Chicago, sales of Downtown Condominium Units are weak, and could use a bit of help that the FHA Approval Changes will provide.  So far in 2009, only 424 units in the Chicago Loop and in nearby neighborhoods have gone under contract.  That's just over half of the 845 units sold to this point last year.

Across IL, for single-family homes and condominiums, the maximum FHA Loan Amount will remain at its 2009 level of $417,000. 

Normally, limits increase or decrease with changes in the median home price in a particular metro area. However, guidelines of the Federal Housing and Economic Recovery Act prevent the cap level from being reduced, despite considerable fall-off in home and condo prices here in Chicago and the Chicago Suburbs over the past year.

See our post today via BlogChicagoHomes.com.

DEAN & DEAN'S TEAM CHICAGO

Good Sunday Evening from Chicago, folks!

No matter where you live, or where you work, Short Sale Properties are as much a fact of like for those working or buying Real Estate as the U.S. Economic Recession itself.

A couple of years ago, one of our former Team Members, frustrated with a bank disapproval after a lengthy wait, swore them off completely.  Her Listing Client ended up in foreclosure, losing his house, after her seemingly-patient buyer, then another, each got tired of waiting - nearly five months after the original contract was signed by the distressed seller.

These days, ignoring the presence of Short Sale Properties is very shortsighted.  In some of the Chicago Neighborhoods and Suburbs our Real Estate Team serves, over half of the available properties on the market are either selling short, or already bank owned.

On the Listing Side, many prospective clients are delaying going to market unless and until they really need to.  And, when they need to, it is over matters of distress.  Often, for these people, selling short is the only reasonable alternative.

If you study what exactly a Short Sale is - the seller turning over his house to a prospective buyer for less than what is owed on the mortgage, in order to stave off foreclosure, it seems like a successfully-completed short sale would be a win-win for everyone involved.

The seller removes an oppressive debt.  The buyer gets a good-condition home at an attractive price.  The lender avoids the high costs associated with foreclosure.  And, finally, the community does not have to see a depreciating, deteriorating, boarded up home right down the street.

If it is a win-win, however, why do banks not yet seem to want to win their share?

The waiting game played by some of the largest banks - several months in most cases - seems specifically designed to increase the chances of alienating prospective buyers. 

From the perspective of the frustrated seller, and his Realtor and Attorney, Customer Service is usually poor, with less than competent clerks spearheading the process.  During one recent transaction we had with the Bank of America, the phrase "10 Business Days More" was an almost-scripted, boilerplate response to our every questions of how long it would take to get to the next step.

Two weeks ago, we finally got through to a Second Stage Loss Mitigation Professional at BOA.  But, at this time, we have no written confirmation that the current buyer we have will stick with us for the couple of more weeks it will likely take to get final approval  If we DO get approval at all!

On this one deal, which we have been working on since late June, the seller has not had the money to pay his mortgage.  He was unable to procure a tenant to rent his property.  It has remained vacant, without house payments made, since the time the temperature around here was in the 70's - at night!

A buyer walking away at this critical point - unless we can find a qualified replacement buyer right away - would almost certainly result in foreclosure procedures happening right away.

Now, some Real Estate Practitioners have found clever ways to "game" the system.  They sometimes find a patient investor, right away, who writes a low offer.  They might also have another buyer - perhaps less patient - waiting in the wings.

If the investor writes a low offer and it is accepted, he buys the property at a considerable discount.  If the offer gets counter-offered, they buyer might counter back - but if the negotiation is not successful, the listing agent now has some idea of what bottom-line sales price would be acceptable to the bank.  He quickly finds a replacement offer - and sometimes gets it through.

The strategy here - playing a game!

Another tactic - should the first buyer walk away, delay notifying the bank of the impatient buyer.  Do so, and risk the insensitive lender shredding the entire file, and restarting the clock again - likely, another six-month wait.

Instead, should a buyer walk away, immediately lower the price to the level of the previously-successful offer, and do everything you can to find a new buyer right away.  Then, try to replace the buyer with the new one, at this most critical juncture in the short sale process.

Again - another game!  A game you, as well as the seller, the bank, and the buyer, could lose.  And if you do?

All that hard work.  All that patience.  All for naught!

No matter which way you slice that - it makes NO SENSE!

You agree?  Please share your thoughts, as well as your experiences!

DEAN & DEAN'S TEAM CHICAGO

The Holidays will be here before you know it!  In Downtown Chicago, on The Michigan Avenue Magnificent Mile, the celebration started today!

Our Team Member Sue Moss provides a rundown, and also outlines Thanksgiving Week Activities here in Chicago.

The City of Chicago rang in the start of the Holiday season today with the 18^th Annual Magnificent Mile Lights Festival on Michigan Avenue between Oak Street and Wacker Drive.

If you have never attended this event before, it's a full day of fun activities with live music from 11:00 a.m. to 4:00 p.m. at the Harris Stage.  Mitchel Musso, co-star on "Hannah Montana", will be performing at 2:00 p.m. as well as the pop group Plain White T's taking the stage at 3:00 p.m.

And, you definitely don't want to miss the street-lighting procession of over one million lights along North Michigan Avenue at 5:30 p.m. with Mickey Mouse as the master of ceremonies!  Word has it that Ashley Greene, lead actress in "Twilight" will be appearing in the ceremony along with other celebrities.

A fireworks display over the Chicago River at Michigan Avenue at 6:55 p.m. will wrap up this year's festival.  I can't think of a better way to kick-off the Holiday season than this.  So, click here to download your Holiday Activity Guide - there's much more than what I mentioned here!!

Also taking place this Saturday from 2:00 p.m.-4:00 p.m. at the Palmer House Hilton is the Lighting of the Lobby Christmas Tree with the Joffrey Ballet.  Come out and meet the cast members of this year's "Nutcracker"!

This year's City of Chicago Christmas Tree Lighting Ceremony will take place on Wednesday, November 25^th, at 4:00 p.m.  Head on over to the Daley Plaza (50 W. Washington St.) as Chicago-native, Bonnie Hunt, flips the switch with Mayor Daley.  A Chicago tradition for the past 96 years!!

If you're like me and want to get a head-start on your Holiday shopping, the 7^th Annual Winter Arts and Crafts Expo opens to the public this Saturday at the Evanston Art Center (2603 Sheridan Rd.) and runs through December 22^nd.  The Winter Expo features a variety of original works by over 100 artists -- a perfect place to shop for everyone on your list!  Click here for more information on getting those unique gifts.

And finally, no, I haven't forgotten about Thanksgiving.  How could I?  I host Thanksgiving dinner for family & friends.  So, you just might run into me this Saturday, 2:00 p.m., over at The Chopping Block in the Lincoln Square neighborhood for their How to Carve a Turkey demonstration!  I don't think I need to say anymore.

And for all those who will not be in a kitchen this Thanksgiving, do your cook(s) a big favor and gather everyone up in the household and take them to the 76^th Annual McDonald's Thanksgiving Parade in the South Loop over at State Street and Congress Parkway.  By the time you get home, you'll have a delicious traditional Thanksgiving meal waiting for you - YUM!

Have a Great Thanksgiving!

Read Sue's This Weekend in Chicago Blog Archive, via BlogChicagoHomes.com.

DEAN & DEAN'S TEAM CHICAGO

Good Evening from Chicago, folks!

In this week's edition of Chicago Neighborhood News, our Team Member Cathy Mallers covers the Chicago Neighborhoods of Lincoln Park, Lakeview, Old Town, and The West Loop, as well as the Chicago Suburb of Naperville IL.

Any special holiday plans, parties, or events you would like Dean's Team to help you publicize?  Let us know - we'll gladly help spread the word.  Our Team offers the Number One Related Active Rain Blog in the City of Chicago.

LINCOLN PARK

You know, breakfast really is the most important meal of the day.  Why not enjoy it with the best accoutrement, bacon.

Tomorrow morning, bright and early, a new "breakfast/lunch/brunch temple" opens at 3210 N. Lincoln Ave.  The name of this soon to be nefarious locale, Bakin' & Eggs.  And this place is all about the bacon.  They have a bacon flight, so you can sample applewood-smoked, cured and jalapeño bacon in one fell swoop.

LAKEVIEW

Southport Corridor continues to be one of the places to shop and dine in the Lakeview neighborhood.  Festivities run from 5-8 pm.

This Thursday store front Holiday lights will be turning on at 6pm.  Come join the festivities sponsored by the Lakeview Chamber of Commerce.  You'll enjoy complimentary drinks and snacks, listen to strolling musicians, discover unique gift ideas for friends and family, and much more!

WEST LOOP

Cook County Hospital is a mainstay in the community in the Southwest Loop area and has been the talk of the town recently.

Jones Lang LaSalle discussed a report with the Cook County board's construction committee to convert the empty location into offices yesterday morning.  While office space may be inexpensive, the least expensive would be converting the building to a dorm.  There's more to the report and discussion here.

OLD TOWN

You've Gotta Get It, Pro Patio, and Garrett Popcorn will be raising money for Child Cause^TM this Thursday, November 19^th.

As the holiday giving season starts to kick off, you can head over to Spoon Bar located at 1240 N. Wells Street from 6-9pm.  Your donation of $25 gets you three hours of domestic beer bottles, well cocktails and wine.

The Child Cause mission is to support kids around the world affected by AIDS, unsafe drinking water and homelessness.

NAPERVILLE

David Carlson was an antique dealer and owner of Nook and Cranny on south Vincennes in Chicago. For years, David's business also occupied booth #63 at the Antiques on Jefferson Mall in Naperville.

When David died last year, his daughter, Emily, moved the contents of the seven storage lockers to her workplace loft at 2010 W. Fulton where she is hosting an Antiques Estate Sale starting this Friday through Sunday from 8am to 3pm each day.  The inventory is vast and varied.

Here's a link to Cathy's Chicago Neighborhood News Blog Archive, as featured on BlogChicagoHomes.com.

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!

Hey, hey you dogs!  Sorry for the delayed post this week - things seemed to get too carried away in my Posting Pen this week.  But I'm back now, and ready to type!  Thanks for Keeping the Faith!

Oprah Winfrey! 

She's saying she'll be ending production of her world-renown show in 2011.  Leaving Chicago?  Well, that's not known for sure yet.  But if she did, it's likely to leave a big hole in the city, and in the West Side of Chicago Neighborhood where her own Harpo Studios, where her show is taped each day, is located.

As reported by Chicago Tribune Reporter Phil Rosenthal in yesterday's Trib, Oprah started her groundbreaking talk show at the Chicago ABC Affiliate - WLS-TV Channel 7 - back in 1984.  At that time, she took over as host for low-rated AM Chicago, and began build ratings and her local audience.  The Oprah Empire, best as this Lil' White Dog can tell, began to build a couple of years later, in 1986, when the show began its national syndicated run.

Team Leader Dean went to one of those early show tapings by mistake, back in 1985.  Walking by the Channel 7 Studios late one spring morning, he was on his way to get a cup of coffee - a morning meeting was canceled.   A man in a blazer, with a megaphone, was recruiting audience members for the morning's show - he needed 15 more, and it was 30 minutes before the taping was to begin.

Dean said, "What the heck?"  He had some time, and watched the show from the studio audience.  He said it was a bit of a scramble for the guy in the blazer to fill the audience - she was not yet popular, even in her home town. 

The show dealt with local politics - a major brewhaha between then Chicago Mayor Harold Washington and old-guard alderman fighting the fledgling mayor for city power.    Washington was the first African American Mayor of Chicago - and Oprah was just beginning to make her mark here.

As Dean related to this reporting dog, the show did not seem that remarkable.  People watched the show, Oprah thanked them afterward, and everyone left.

That's a far cry from today - where loyal viewers wait weeks or months for tickets, or bid them up via the Internet.  They come from far and wide to see the show taped at Harpo Studios - and, usually, stick around Chicago to see what else the city has to offer.

Over the years, Daddy Dean and I have gotten many calls from out of towners asking if we could use our considerable clout to get them a ticket to see O.  Truth be told, this Lil' White Dog has little pull with the Oprah folks at Harpo.

But Winfrey's presence in Chicago has undoubtedly helped improve the image of our city.  She has advocated the city she has called home for so many years - most recently at this year's season premiere - Michigan Avenue was partly closed for this mega-event.  Oprah Fans remember all the fanfare!

Before Oprah, the West Side Chicago Neighborhood where Harpo Studios was located was populated by abandoned retail fixture stores, long-vacated warehouses, and ramshackle apartments.  Today, it is downright chic - nice restaurants, latte shops, several pricey boutiques.   And condos.  Many, many luxury and loft condos - with residents attracted by the newfound allure of the community.

Will Oprah actually leave Chicago, as she debuts here Oprah Winfrey Cable Network (OWN) in 2011?  If she does, will the neighborhood in which her multi-billion dollar operation is headquartered take a hit?   We dogs surely hope not!

In 2009, in a tough economy, the City of Chicago has taken a hit.  Several major trade shows announced plans to move their major conventions elsewhere, outside of town.  And no one involved can deny that everyone involved was shocked when Chicago did not win the 2016 Summer Olympics.  Oprah was one of the major celebrities - along with fellow Chicagoan, President Barack Obama and The First Lady - who pitched for the games.  They didn't succeed, as we all know!

So, Oprah, take this plea from me and my fellow canine compatriots:  Don't Leave Town!  Indeed . . .  we need you!

Even though many of us in the four-pawed set often watch Animal Planet when you're on each morning!

See my post today via BlogChicagoHomes.com.

YOUR ACE REPORTER ON FOUR PAWS,

BUDDY HOLLY MOSS & DEAN'S TEAM CHICAGO

Good Evening!

Here's our update on Chicago IL Real Estate Market Statistics, based on data compiled and reviewed Sunday Evening, November 15th. 

This past week has seen continuing stability in the Housing Market in the North and Northwest Side of Chicago Neighborhoods we serve with great frequency.  Active Listings Inventor showed little change.  Pending Sales - about the same versus last week. 

Average Sales Price is up, however, as is, unfortunately, Average Market Time.  Sales Volume rebounded a bit over last week.   Units Sold and Listings Expired - generally, steady! 

Absorption Rate - the theoretical time to clear existing homes-for-sale inventory, ticked up a very slight amount- it remains just over 9.6 months. 

The Percentage of Homes Selling in an Estimated Six-Month Marketing Time Frame jumped to over 51% this past week.  Earlier this year, that percentage was just over 30%!   It's been a long time since the number of homes selling during an Estimated Six-Month Market Time eclipsed 50% here in Chicago!

Here are archived annual Chicago Neighborhood Statistics, including Units Sold and Price Trends Data, for 1995 through 2008 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 November 15th        3,776                   42                    82                35

w/e November 8th          3,794                   47                    99                31

% CHANGE                       -0.4                  -1.1%                -8.9%           +12.9%

CLOSED PROPERTIES DATA

                              AVG SALE PRICE     AVG DAYS ON MKT     TOTAL VOLUME   

w/e November 15th     $282,077            172 DAYS                    $27,296,816

w/e November 8th       $254,536            142 DAYS                    $25,199,064

% CHANGE                     +10.8%                 +21.1%                          +8.3%

THEORETICAL TIME TO CLEAR EXISTING INVENTORY (ABSORPTION RATE) -

w/e November 15th - LAST 12 MOS - 13.38   LAST 6 MOS - 10.21  LAST 3 MOS - 9.62

w/e November 8th   - LAST 12 MOS - 13.13  LAST 6 MOS -  9.91    LAST 3 MOS - 9.58

PERCENT OF HOMES SELLING IN 180 DAYS - 

w/e November 15th - 51.09% (UNSOLD - 48.91%) 

w/e November 8th  - 49.10% (UNSOLD - 50.90%)

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!

DEAN & DEAN'S TEAM CHICAGO

Folks, it seems pretty obvious that if you want drive an automobile - anywhere - you better have a valid Driver's License.  Duhhhhh!

But here, in Chicago, as reported in the Chicago Tribune by John Byrne, 22,904 tickets were issued in the city for driving without a valid Driver's License. 

And some of these unlicensed drivers have caused serious, if not fatal, traffic accidents.  One such driver without a license, James Cox, was cited for a traffic accident which resulted in the death of a 27-year-old pregnant woman on the West Side of Chicago in October.  Records show Cox was cited 12 times for unlicensed driving, with minimal fines imposed.

Alderman Tom Allen, of the 38th Ward on the Northwest Side of Chicago, sponsored the ordinance.  It takes effect January 1st.  It increases the fine for driving without a driver's license to $500, plus a $165 City Tow Fee to impound and subsequently release the car.  Total penalty - $665.

The Alderman acknowledged his ordinance is far from a cure-all.  But he added if Mr. Cox was faced with thousands of dollars of driving fines, he might not have been behind the wheel to cause an accident which resulted in a fatality.

Often, in Chicago Politics - common sense is not the leader.  On the other hand, it often follows tragedy!

Read our post today via BlogChicagoHomes.com.

DEAN MOSS & DEAN'S TEAM CHICAGO

Years ago - many years ago - say, back in the early 1990's, Real Estate Prognosticators predicted a surge in homebuying interest if only mortgage rates fell.  They did, and the market climbed!

The broken threshold they were hoping for - 10% - came in 1991, when interest rates for a 30-Year Fixed Rate Home Loan fell to only 9.9%.  At that time, 18 years ago, many potential homebuyers reached for their check books (they still used "Check Books" back then), grabbed the Sunday Paper (folks still read Sunday Papers back then - there was scarcely an Internet), and  hit the bricks, happily, looking for a New Home Bargain.

Fast forward to 2009!  Unemployment is the highest it has been across the U.S. since 1983.  Foreclosures and distressed property sales are skyrocketing.  Home Values are still falling.  And even ultra-low Mortgage Interest Rates can't quickly turn the market around!

Despite the fact that interest rates for the week ending the first week in November, interest in mortgage loans for buying a home dwindled.  According to the Mortgage Bankers Association, applications that week for new loans fell a seasonally-adjusted 11.7% from the prior week.  That's the lowest level since December, 2000.  (See Mary Ellen Podmolik's Chicago Tribune story for more details).

There was a bit of good news for lenders, however,  Refinance loans - those looking for a better rate on their current home - increased 11.3% during the same week.  The MBA identified 71.5% of loan applications that week as re-fi loans, versus 66.1% the last week in October. 

Currently, Mortgage Interest Rates for Fixed-Rate Loans range between 4.90 and 4.97% for the best qualified borrowers.  For those without perfect credit and strong down payments or home equity, rates and loan fees are higher.

See our post today via BlogChicagoHomes.com.

DEAN & DEAN'S TEAM CHICAGO

Hey, gang, from Chicago!

The rumors of my demise have been greatly exaggerated!  I'm still here, and still posting - just getting back into the swing of things after a fun filled week of training and mentoring others here at our Keller Williams Market Center, in the Lincoln Square Neighborhood on the North Side of Chicago.

Now that the week is over, our Printing Press is back in business - as is the lil' press of Famous Blogging Doggie, Buddy Holly Moss, with his post coming soon!  Thanks for your patience, folks - please, stay tuned, and Keep The Faith!  OK?

In the flood of news recently to extend the very popular First Time Homebuyer's Tax Credit - which offered up to an $8,000 IRS Check to many first time homebuyers beginning last February - some long-time homebuyers also have reason to cheer!

Effective upon President Obama's signature, on November 6th, many existing homeowners looking to find a new home were also given a bit of a financial boost.   For those who contract for their home purchase transaction between November 6th and April 30th, 2010, many may qualify for a fairly sizable $6,500 tax credit - either an offset against income taxes due, or a straight tax refund.   The new home purchased must close no later than next June 30th.  See Kenneth R. Harney's story in the Chicago Tribune for more details.

Similar to the First Time Buyer Credit, however, the credit for current homeowners does have a few strings attached.

First, only those who have resided in their previous home for five consecutive years out of the past eight years qualify for the credit. 

Also, the new home must be your new Principal Residence - no credit offered for second homes, vacation homes, or in-town condominiums.  However, there is no requirement you must sell your first home - the old homestead can be rented out to a tenant, or your old home can become your new "second" home - you will still qualify for the Fed incentive.

Purchasing a more expensive home is not a requirement - buyers still qualify for the credit if they are buying a smaller or less expensive property.

The new home can cost no more than $800,000, and the credit caps out at 10% of the home purchase price.  To receive the full credit, therefore, your new home must cost at least $65,000.  In Chicago, that is very easy to do; few homes here sell for less than $65K!

There is an income cap - $125,000 for single taxpayers, $225,000 for married couples filing jointly.  This is up significantly from the old First Time Homebuyer Program caps of $75,000 and $125,000 respectively.

Virtually any type of residential dwelling will qualify under the program - single-family homes or condos, condominiums, mobile homes, even house boats that would function as your primary residence.  Even some two-flat buildings might qualify, if the entire building were to be occupied by the purchasing owner.

If you buy and close before the end of 2009, the credit can either be taken off the '09 Income Tax Return you file next year, or off paid 2008 taxes, by filing an amended return.

Buy in 2010?  Again, you can take the credit off of 2009 taxes, or those filed in 2011, for next year's taxes.

Once the credit expires next year, will it again be extended?  Those in the know say, "Not Likely!"  We happen to agree!

So go for the credit now!  Our Team expects a big surge in home buying interest among current homeowners who qualify, especially as the extended deadline approaches next spring.

Please see our post via BlogChicagoHomes.com.

DEAN & DEAN'S TEAM CHICAGO