"You've Caught the NET!"

Hey, folks, from Chicago!

Often times, change, in virtually any form, is tough for some to take.  Some constituencies always complain!

Civil Rights Legislation! Fair Housing!  Health Care Reform!  You name it!

For every individual singing praises on one side of the fence, there seems to be three others damning it to hell!  Always, it has been this way!

Time then passes, the rules get tweaked, and folks learn to live with the new procedures.

But, in the meanwhile, folks HATE change!

The latest thing to change:  RESPA rules.  New Good Faith Estimate Forms. A New HUD-1 Settlement Statement.

It's all meant to make things more transparent for the buyer.  Avoid surprise charges and "junk fees" at closing.  Make the process more transparent.

But many on the lending side of the ball decry the new rules, although most Real Estate Practitioners have known they are coming since early 2008!

As reported by Real Estate Columnist Mary Ellen Podmolik in the Chicago Tribune, the latest forms, to be required paperwork in all Real Estate Transactions beginning this Friday, New Year's Day, will require a new, easier-to-read Good Faith Estimate of Closing Costs to be provided by the Loan Originator shortly after the buyer makes application for a new loan.

On the new form, key loan terms must be provided in detail.  Any pre-payment penalties or a balloon payment must also be clearly called out.

Each line item on the new, now-multi-page Good Faith Estimate will track back to the borrower's Settlement Statement, or HUD-1 form, at closing.  Specific charges may not change between the creation of the Good Faith Estimate and the closing, while others can increase by a maximum of 10%.

Here's a link to the HUD Website, outlining new rules and providing samples of required new forms.

Loan Originators must also provide at least one alternate for key closing services, items such as title insurance, and a plat of survey.  HUD feels this practice will make comparison shopping for these required services much easier, and save the new homebuyers as much as several hundred dollars in closing costs.

As one might expect, not everyone in the lending industry is embracing the changes.

Some Lenders argue that many of the customary fees will now be aggregated, instead of being separately identified as line items.  Such fees will include underwriting fees and processing charges, previously separated and individually identified.  Also, Real Estate Compensation will no longer be spelled out on HUD-1 Settlement Statements, as it was before.

Also, they contend that the price-change caps might not apply if the borrowers select their own closing service providers, rather than the ones selected by the loan originators themselves.

Finally, in IL, effective January 1, 2010, borrowers will no longer be able to pay high down payment amounts - greater than $50,000 - with cashier's checks at the closing table. 

Under new IL "Good Funds" Legislation, such large amounts must soon be paid by direct bank wire, to reduce losses from fraudulent cashier's checks.  (Here in IL, an exemption will be made for Title Company Checks representing the positive proceeds from the buyer's immediate prior sale).

Some lenders do not have the latest computer software in place to create and print the new required forms, despite the long notice for enactment of the new rules.  HUD plans to be more liberal in their enforcement of the new RESPA Provisions for the first couple of months of 2010, but all lenders will be expected to enact the changes promptly.

Will the new process result in greater transparency to home buyers?  Less cost?  A more streamlined closing process?

Naysayers say, "NO!"  Likely, however, some improvement is likely to a basic system that has not been re-worked in over 35 years.

Please see our post today via BlogChicagoHomes.com.

DEAN & DEAN'S TEAM CHICAGO

Here in Chicago, we're enjoying - or, perhaps, enduring - a White (Weekend After) Christmas!  Anyone know a teen aged kid with a shovel?  Send 'em here!

This post keeps Real Estate Practitioners looking for Listing Inventory in mind . . . but I would imagine the same principals would apply to virtually anyone in a sales, consulting, or advisory business.

Here are the questions for this chilly Sunday -

When your client makes unreasonable demands about their work relationship with you, do you comply?  Do you compromise?  Or, do you simply walk away, and not do business with them?

This time of year, as a Chicago Real Estate Broker looking to add listings to my inventory, I often contact sellers whose listings expired with another Realtor.   The one common thread to these listings, and the sellers - they spent many weeks, usually months on the market without selling their home.

The other common factor has a couple of possible branches to it.

Were the sellers reasonable and respectful of their Listing Agents advice relative to property marketing and pricing?  Or, did they simply list their desires and expectations?

Even worse - did the Listing Agent simply COMPLY with what they felt to be unrealistic demands and expectations, simply to placate their client, only later to let their clients down when their property did not sell?

My concern here is those agents who simply nod their head and comply, and work for a client knowing they will not likely sell their home in the time allowed.  They fear losing a listing if they do not acquiesce.  And, after all, they need the business!

It is these weaker agents - weaker sales professionals - that concern me.  They give other, more professional, candid professionals, and the business of Real Estate Sales and Marketing as a whole,  a black eye.

You might have seen examples of the weak professionals shoddy work -

1.  The seller insists on a too high price for their home - one which is unlikely to result in a sale.  BUT THE WEAK PROFESSIONAL AGREES TO TAKE THE LISTING ANYWAY!

2.  The seller insists on frequent Public Open Houses.  According to statistics, it is extremely rare for Open Houses to actually result in a sale of the subject home.  BUT THE WEAK PROFESSIONAL AGREES TO TAKE THE LISTING ANYWAY!

3.  The seller poo-poos the idea of de-cluttering, or common-sense housekeeping, or simple staging,  BUT THE WEAK PROFESSIONAL AGREES TO TAKE THE LISTING ANYWAY!

4.  The seller demands expensive, extensive print advertising, despite the fact the latest market stats indicate such advertising is unlikely to be effective.  BUT THE WEAK PROFESSIONAL AGREES TO TAKE THE LISTING ANYWAY!

5.  The seller requires every showing be personally accompanied, in an area where such listing-agent- accompanied showings are not the norm.  BUT THE WEAK PROFESSIONAL AGREES TO TAKE THE LISTING ANYWAY!

I think I have made my point . . . yes?

When calling on Expired Listings, I first examine their old, unsalable Listing Price.  When I ask the dismayed unsuccessful seller if this was the price the agent counseled them to list at, I often hear, "No, this is the price I said we need to sell for!"  The agent simply complied, often without much protest.

Now, weeks or months later, the seller is upset.  "No agent can sell my home!"  When the real problem is - one agent was weak, and now the good ones must now pay the price of the seller's poor initial selection.

Listing Agents, how would you prevent such a thing from happening to you and your clients?  Compromising?  Being flexible?  Telling your clients to "Go Climb a Tree?"

I have often contended that much of the unsold inventory on the market today is a direct result of a weaker listing agent simply agreeing to "make the client happy." 

This problem is especially acute in this day and age, when it really is tough to predict what the final sales price is likely to be, as prices, in many Real Estate Markets across the U.S., are still falling.

Several times in 2009, our Real Estate Team has taken listings from what seem to be reasonable clients - right priced, nicely staged, motivated to sell, house always available for showings - only to have the sellers turn on us when the market turned more unreasonable than we originally predicted.

These unsold listings cost us time, money, mental anxiety - and, likely, no future referrals from a disappointed client.

We have walked away this past year from clients with unreasonable price and market expectations - only to see those listings remain unsold with another, more agreeable Real Estate Practitioner.  Other times, we see the same listings with multiple price reductions finally selling - often the original price we suggested when, way back when, at the time we refused their business.

But, still, every single day, other Real Estate Agents take high-priced, poorly-motivated, poorly-staged listings anyway, simply to build their inventory!

What are the rest of us supposed to do about this?  Please share your thoughts!

DEAN & DEAN'S TEAM CHICAGO

Is your Christmas Celebration winding down a bit?

Christmas Day seems to make the rest of this weekend anti-climatic, but there will still be plenty of things to do across Chicago before the big celebrations on New Years Eve.  Our Team Member, Sue Moss, provides a rundown.

Have you gotten a chance to catch any of the Chicago Christmas Theater Productions yet?  if you didn't, don't worry.  Two of the most popular productions are still around:

A Christmas Carol at the Goodman Theater located at 170 N. Dearborn Street.  One of Chicago's very own will be recreating his role as Scrooge in this classic tale of the true meaning of Christmas.  Click here for more information and tickets.

The Nutcracker by the Joffrey Ballet at the Auditorium Theater located at 50 E. Congress Parkway.  Tchaikovsky's classic Christmas ballet is being performed by the Joffrey Ballet of Chicago and accompanied by the Chicago Sinfonietta Orchestra.  Click here for more information and tickets.

Need a good laugh or two to release your Holiday stress?  Then you might be interested in these comedy and/or musical theater productions -

The Annoyance Theater (4830 N. Broadway) in the Uptown neighborhood, will be presenting a collection of humorous, seasonal horror stories in which disgruntled elves plot a revolution and more in their production of Silent Nightmare:  A Christmas Dirge.  This Saturday is the last performance, so click here for more details and obtaining tickets.

Maybe a cross-dressing reindeer is more your cup of tea.  Rudolph, the Red-Hosed Reindeer is being performed at Mary's Attic (5400 N. Clark Street) in the Andersonville neighborhood.  You've been warned - not suitable for kids.  Click here for more information.

There's still time as well to catch Cirque du Soleil's Banana Shpeel over at The Chicago Theater (175 N. State Street) in the Loop.  This production consisting of comedy, dance and songs was written and being directed by David Shiner ("Kooza").  Click here for more information and tickets.

Lastly, and I'm not sure if this is back by popular demand or what, but this Sunday and Monday at McCormick Place (2301 S. Lake Shore Drive) is Mayor Daley's Holiday Sportsfest for those of us who had no will power and put on some extra holiday pounds that we now have to shed.  Click here for more details.

And finally, as we move toward 2010, let us not forget about Friday, December 31^st - New Year's Eve!

Needless to say, as usual, Chicago and its surrounding neighborhoods will offer up an array of NYE festivities for all style preferences, such as dance parties, dress to impress parties, hotel bashes, rockin' concerts and even offbeat picks like bowling bashes, comedy reviews and more.

However, after all the Holiday shopping, I'm on a budget now, but definitely don't want to miss out on any of the NYE celebrations.  So, here's a sampling of "Under $50" ($8 to $50) -

The Call located at 1547 W. Bryn Mawr Avenue, Andersonville

Hunt Club located at 1100 N. State Street, Near North Side

Le Bar located in the Sofitel Chicago Water Tower, 20 E. Chestnut Street, Gold Coast

The Chuckle Bowl Spectacular located at the Lincoln Square Lanes, 4874 N. Lincoln Avenue, Lincoln Square

Dream (1750 N. Clark Street) or Lion Head Pub (2251 N. Lincoln Avenue), Lincoln Park

Vision Nightclub and Excalibur located at 632 N. Dearborn Street, River North

Fat Cat located at 4840 N. Broadway, Uptown

Crobar, 1543 N. Kingsbury Street, Old Town

Blue Bayou located at 3734 N. Southport Avenue, Lakeview

For a full list of New Year's Eve in Chicago go to Metromix.

It's been a pleasure "Entertaining" you in 2009!

Have a Happy, Healthy, Safe & Prosperous New Year!!  See You Next Year!

Here's a link to Sue's This Weekend in Chicago Blog Archive, via BlogChicagoHomes.com.

DEAN & DEAN'S TEAM CHICAGO

Merry Christmas from Chicago, folks!

Presents are all opened.  Dinner is done.  Dessert eaten.  Time to catch up a bit on my posting!

From our Team Member Cathy Mallers, here's this weeks edition of Chicago Neighborhood News.  Written earlier this week, Cathy updates us on the Chicago Neighborhoods of Lakeview, Lincoln Park, The Loop, and Old Town, as well as the Chicago Suburb of Evanston IL.

What are you planning for New Years Eve?  Want to spread the word, across Chicago or to any Chicago Suburb.  Let us know, and we'll help you with your publicity.

Dean's Team offers the Number One Rated Active Rain Blog in Chicago IL!

LAKEVIEW

Wednesday is definitely the night each week to head out for a quick tour of the Wrigley Rink and then off to Rockit Bar and Grill.  Every Wednesday, one of our favorite offerings is a complimentary brick oven pizza with the purchase of a pitcher of beer. 

Okay, so not something for the kids, but it's a great way to wind down after doing all your last minute shopping.  By the way, the kids eat free every Sunday night from 4 to 9 pm.

LINCOLN PARK

This year marks the 25^th year of the Lincoln Park New Year's Day 5k Run/Walk.  This iconic annual run/walk -- now celebrating its 25th year -- is a fave with Windy City sports enthusiasts!

They are anticipating 1500 runners and walkers this year with an 11am start.  A portion of run/walk proceeds will benefit the Lake View Citizens' Council, a non-profit neighborhood organization. In addition, there will be a post-event party at a cozy neighborhood establishment.

THE LOOP

Block 37 is open and we wanted to highlight a yummy new location on the pedway called Beard Papa's.  The image as you walk through the door is a young Santa smoking a pipe. They just opened on Tuesday morning - again a great way to get your last-minute holiday shopping started.

Be sure to take the Red Line or Blue Line to the State Street exit and enjoy some flaky-chewy cream puff shells.  Don't forget to ask to have your cream puffs dipped in chocolate before stuffing them to order with your choice of Madagascar vanilla custard, Belgian chocolate cream, dulce de leche or maybe a little Baileys Irish Cream-flavored ice cream.

OLD TOWN

Adobo Grill is offering its New Year's package now and it's sure to be a doozey.  Don't wait until the last minute to get in on all the fun.

The price per person is $89.00 plus tax and gratuity. This includes unlimited margaritas, beer, wine, and a tequila toast at midnight. There will be a mariachi band and party favors.  Reservations are required and can be made in person or by calling 312-266-7999

EVANSTON

Police Chief Richard Eddington thanked members of the community, members of the Evanston Police Department, Evanston Fire Department and others for participating in a successful blood drive Dec. 14, donating some 210 units of blood to help an Evanston police officer who is in critical condition at Lutheran General Hospital.

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

Enjoy the Christmas Weekend!

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!

Christmas Day in Chicago!  Hard to believe, you dogs - another year is almost in the proverbial pooper scooper, so to speak.

Yes, the Christmas Shopping Season had it's usual hustle and bustle.  For me, and my Human Dad, Team Leader Dean, that meant our annual Father-Son Christmas Shopping Spree - yesterday, Christmas Eve, right after lunch. 

We hit the Linconwood Town Center.  The Best Buy just up the street here on Touhy Avenue.  And then headed back to Dean's Team World Headquarters - on the Mezzanine Level on Lincoln and Montrose Avenues - to wrap a gift or two.

The year 2009 has been an incredible year for our little Real Estate Team.  Watershed, as Daddy Dean likes to call it!

Newfound business - where, this time one year ago, we thought there would be little.  Old connections - one via Facebook and Social Networking - will be life changing.

As Daddy says, you dogs - it is very often, when things are at their bleakest.  When you think all hope is lost.  When you feel there is no way out - the pen is locked - mystically, magically, a new door appears to open.

Over the past year, the Chicago Condominium Market has come down hard.  Single Family Houses, in many of the North and Northwest Side Chicago Neighborhoods we serve most frequently, have lost, in some cases one-quarter of their value.  Second Homes, Investment Properties - very tough to sell or have financed.

Short Sale Properties - those distressed sales where the homeowner now must sell for far less what he owes the bank - have become a daily, grinding part of our lives.  Foreclosure properties as well.  A couple of years ago, few inside or outside of the real estate business never even knew what these were, let alone dealing with the heartbreak of them.

But things are looking up here in Chicago!

First-time home buyers are heading to buy with greater frequency, lured, in part, by the Fed Buyer Credit - now available for some repeat buyers as well.  People are becoming more frugal, and really trying to improve on their credit situation - this might not have happened if the status quo continued, and housing appreciation continued unabated.

Those who can are becoming more charitable, helping those who can't.  And folks who never, ever thought they would be in trouble financially - would never be late with a bill, or a house payment - are.  And everyone seems to understand!

You know, you dogs, Daddy Dean is not a Christian.   He never grew up believing the the Spirit of Christmas - although my Human Mommy, Sue, did.

But, often times, the Spirit of Christmas goes beyond spirituality.  It is more about FAITH.  The Faith that you can not only survive, but that things will get better.  Flourish.  Always.  Forever!

Like the line in old Christmas film Gracie and I watch with Mommy and Daddy each year - "Miracle on 34th Street,"   The original one, with Maureen O'Hara, and a young Natalie Wood.  Always - "You Gotta Believe!"

And that's really The Christmas Miracle.  No matter your religion!

Have a Very Merry Christmas, from Dean's Team here in Chicago - Buddy, Gracie, Dean, Sue, Kathy, Cathy, Janet, and Jeff!

Here's a link to my post today via BlogChicagoHomes.com.

YOUR ACE REPORTER ON FOUR PAWS,

BUDDY HOLLY MOSS & DEAN'S TEAM CHICAGO

Happy Holidays, from Icy Chicago!

Many have criticized President Obama's Home Affordable Mortgage Program for failing to bring Mortgage Loan Modifications to enough distressed homeowners this year.  However, of those who have been granted modified loans, with lower rates, the percentage of those who keep up with their monthly house payments under the new terms is on the rise.

During the Second Quarter, 2009, 18.7% of mortgage loans re-structured into lower monthly payments went delinquent once again after 60 days.  This compares to a staggering re-default level of 30% after three months for the previous four quarters - from the Second Quarter, 2008, through the First Quarter of this year.

As reported by Ruth Simon in the December 22nd issue of the Wall Street Journal,  many of the earlier, less-successful loan mods resulted in minimum reduction of the borrower's previous mortgage payment.  In a few cases, the modifications actually INCREASED mortgage payments to an even less affordable level. 

During the Second and Third Quarters, 2009, however, 80% of re-worked loans resulted in a reduced payment, according to data compiled by the U.S. Office of Comptroller of the Currency and the Office of Thrift Supervision.  Not surprisingly, loans where payments decreased by greater than 20% had the lowest rate of repeat default.

Of course, it is too early to see if the modified borrowers will continue to make their payments on time.  But these early signs might be encouraging.

These latest numbers come against a backdrop of rising delinquencies among homeowners holding Prime Loans - those homeowners with the best credit and payment histories - during the Third Quarter, 2009.  As a whole, 6.2% of all mortgage loans were at least 60 days pas due last quarter, an increase of roughly 17% versus the Second Quarter. 

Of these Prime Borrowers, 3.6% of their mortgages were at least two months late at the end of the Third Quarter.  That's up 3% from the previous quarter, and roughly double the segment's default rate during the Third Quarter, 2008.

The research data analyzed the 13 biggest U.S. Mortgage Servicing Companies.  Together, these services represent about 64% of all outstanding mortgage loans across the country.

Please read our post today via BlogChicagoHomes.com.

DEAN & DEAN'S TEAM CHICAGO

Happy Days!  Are they here again for the Housing Market, here in Chicago, and elsewhere across the U.S.?  Or, will purchase fall back to earth next year, as Fed Tax Incentives end, and Mortgage Interest Rates rise as predicted?

According to data compiled by the National Association of Realtors, and as reported by Kelly Evans in today's Wall Street Journal, residential resales increased to an annual level o 6.54 Million units last month - far higher than they originally predicted, and 39% over last November's total.

Lawrence Yun, NAR's Chief Economist, revealed that 51% of November buyers were first-time purchasers, aided by the Fed $8,000 First Time Homebuyer Tax Credit.  This credit was originally slated to expire the end of last month, but was since extended to all first-time buyer purchases, and a few repeat purchases for a credit of up to $6,500, through April 30, 2010.   

Some Real Estate Practitioners feel, however, that the uncertainty whether the credit would be extended - it wasn't lengthened until November 6th - persuaded many buyers to act quickly, perhaps inflating the rands of new home purchasers last month.

Yun further estimates that foreclosures, short sales, or other distressed properties made up as much as 33% of all home resale purchases last month.

Also on the positive side, NAR's estimate of Homes For Sale Inventory fell 1.3% in November, to just over 3.5 Million Resale Units.  That is an estimated 6.5 months supply nationally, as compared to a 7 month supply in October.  Here in Chicago, across the North and Northwest Side Neighborhoods  our Real Estate Team serves with great frequency, average inventory is a higher 9.1 months.

Median Home Prices have also continued to moderate!  Nationwide, the median sale price for an existing single-family detached home or condo was $172,600.  That's 4.3% lower than one year before, but a marked improvement from the 7.6% year-over-year median price decline in October.

But do these key indicators indicate storm clouds might be on the horizon?  See Mark Gongloff's story in Yesterday's Wall Street Journal.

 - A large percentage of those buying took advantage of a substantial government incentive.  When these fall away, will resales fall as well.  This was the case in the automobile market, after the vaunted "Cash for Clunkers" program ended last summer, leaving New Car Dealers with a huge hangover in the months that followed.

- Mortgage Interest Rates rose again last week, for the third consecutive week, according to Bankrate.com data, as reported in our latest Chicago IL Real Estate Stats Pack post, via BlogChicagoHomes.com.  Experts predict rates will begin to climb next year as the economy beans to improve, and the Fed's program to purchase Mortgage-Backed Securities is scaled back.

- According to the Mortgage Bankers Association, home purchase applications have fallen 21% since the first week in October, and 16% from November, 2008.  Seasonal fluctuation here, or a longer-term trend as interest rates begin to come back up?

- Many of last month's home sales were distressed, selling, in some cases, at bargain-basement prices.  Will this continuing falling price trend - an average of 7% down nationally since this time last year - keep conventional home sellers, or those not forced to sell - away from the market?  Home seller hesitance to market their homes could drop median prices even more!

In the U.S. Housing Market, it is clear that the incentives, the low rates, the more modest home prices have not, in and of themselves, jump-started the moribund market in what many feel to be a more permanent, sustainable way.  Will the expiration of the incentives, and the expected upward creep of Mortgage Interest Rates in 2010, re-apply the brakes?

Recent history says it is possible.  Very possible!

Here's a link to our post today via BlogChicagoHomes.com.

DEAN & DEAN'S TEAM CHICAGO

Good Morning!

Here's our update on Chicago IL Real Estate Market Statistics, based on data compiled and reviewed Sunday Evening, December 20th.

As you might expect as we approach Christmas and New Years Day, Active Listing Inventory has dwindled a bit - some sellers wish to enjoy a bit of "time off" in advance of the holidays - despite the fact real estate does sell this time of year.  

Expired Listings have jumped this week as well - perhaps some sellers deliberately set their listings to expire before the holidays 

On the other side of the ledger, mid-month Closings are down - but will likely spike again next week as sellers and buyers target closing on their homes before the end of the year.  Sales Volume works in tandem.  Average Market Time fell, but so did Average Sales Price.

Absorption Rate - the theoretical time to clear existing homes-for-sale inventory, jumped 5%, but is still far better than earlier this year in the Chicago Neighborhoods we serve on the North and Northwest Sides of the city .  The Percentage of Homes Selling in an Estimated Six-Month Marketing Time Frame jumped last week to over 56%!

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 December 21st       3,508                   57                    59               38

w/e December 14th       3,573                   50                    65               26

% CHANGE                       -1.8                 +14.0%           -9.2%           +46.2%

CLOSED PROPERTIES DATA

                              AVG SALE PRICE     AVG DAYS ON MKT     TOTAL VOLUME   

w/e December 21st       $255,529            139 DAYS              $15,076,211

w/e December 14th       $288,418            186 DAYS                   $18,747,170

% CHANGE                     -21.8%                -25.3%                          -19.6%

THEORETICAL TIME TO CLEAR EXISTING INVENTORY (ABSORPTION RATE) -

w/e December 21st - LAST 12 MOS - 11.61  LAST 6 MOS - 9.25  LAST 3 MOS - 9.10

w/e December 14th   - LAST 12 MOS - 11.91  LAST 6 MOS -  9.30    LAST 3 MOS - 9.05

PERCENT OF HOMES SELLING IN 180 DAYS - 

w/e December 21st - 56.13% (UNSOLD - 43.87%) 

w/e December 14th - 55.50% (UNSOLD - 44.50%)

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

Is increased lender confidence - key to a housing market turnaround, in Chicago and elsewhere - returning?

In some markets across the U.S., that seems to be the case.  Until very recently, virtually every home market across the country insisted on higher down payments, suggesting local housing prices were still sliding downward.

But now, according to an article by Ruth Simon in the December 16th Wall Street Journal, Private Mortgage Insurance Companies, including larger insurer MGIC, seem to be feeling better about market conditions in many areas, and have taken several mid-sized markets off their "watch list."  

For homes in markets removed from their list, borrowers need a minimum FICO Credit Score of 680 to finance 95% of a home's value.  Those still on the list - including, unfortunately, the Chicago Metropolitan Area - the minimum FICO Score remains at 700 for such high-leverage financing.

New markets removed from the watch list, and thus eligible for mortgage financing with as little as 5% down, include Dover DE, Akron OK, Denver CO, St. Louis MO, and New Orleans LA.  Here's a link to the MGIC Special Underwriting Guidelines, via their website, www.mgic.com.

Back in September, Genworth Financial, another Mortgage Insurance Company, reduced its list of declining markets to only five states - California, Michigan, Nevada, Arizona, and Florida.  Since July, the firm has removed 199 metro markets from its "Declining Markets" list.  Keven Schneider, Genworth President, sees home prices stabilizing in many markets.  Although in others, further price drops are likely, he concedes, tighter credit standards, in his opinion, should reduce overall rates of default.

States still facing steep price declines, such as Nevada, parts of California, and Florida, still require higher down payments, more stringent credit standards, and more scrutinized appraisals, however.  Countering the trend last month, U.S. Controlled Mortgage Guarantor and Investor Fannie Mae increased its minimum credit score to 620, up 40 FICO points from the previous 580 level.

Overall, however, the M.I. Company moves show their confidence that many home prices might be, at a minimum, stabilizing. 

One other reason for the slightly more generous lending standards - intense competition from FHA-Backed Loans.  These FHA Loans require no Private Mortgage Insurance (although they do come with a similar Mortgage Insurance Premium for all borrowers), and a down payment as low as 3.5%.

In addition to changes made by the Mortgage Insurance Companies, one major national lender - Wells Fargo Home Loans - is identifying more markets as of lower risk, and reducing down payment requirements in these locations. 

Neil Librock, in charge of evaluating credit risk for Wells Fargo Consumer Finance, sees "moderation" in many of the formerly-troubled markets.  He sees more borrowers in these markets qualifying for loans with less than the previously-required 20% down payment.

Please see our post today via BlogChicagoHomes.com.

DEAN MOSS & DEAN'S TEAM CHICAGO

In the City of Chicago, reduced tax inflows from anything from the General Sales Tax to the hefty, but unpopular, Real Estate Transfer Tax, have forced the city to look at new ways to generate revenue.  Chicago Parking Meters have been privatized, and enforcement made for stringent, in return for a Billion Dollar, 75-Year Lease - very unpopular, but potentially revenue-generating. 

New Chicago taxes have sprung up from sales of bottled water and soda pop.  Taxes on dog licenses have increased.   Some city workers have been furloughed or forced to take mandatory days off.  Despite the public contention that there is still considerable waste in Chicago City Government - bloated staffs of mid-level supervisors remain in many city departments, including in Mayor Richard M. Daley's office itself - the city appears willing to trim certain expenses.

In many Chicago Suburbs, however, cost cutting has taken on a new ferocity, and a new necessity, as local municipalities must bridge any annual budget shortfalls, according to State of IL Law.

As reported in the Chicago Tribune by Reporters Georgia Garvey and Gerry Smith, the Village of Schaumburg IL, where the sales-tax-generating regional Woodfield Mall is located, city officials are considering the first general sales tax in village history.  In the Northern Chicago Suburb of Evanston IL, layoffs will be likely to close an anticipated $8 Million Budget Shortfall.  Consolidating offices or closing city library branches are also on the table.

The far Western Suburb of Naperville IL hired a consultant, at a cost of $60,000, to suggest areas of the city budget which can stand some cuts.  Based on their suggestions, several costly local projects will be trimmed next year.

Elgin IL, far Northwest of the City of Chicago, faces a $5.5 Million Budget Deficit.  It has banned all city officials from out-of-town travel, and is requiring those found guilty of offenses to handle certain additional clean-up projects, like cutting grass on municipal property, or shoveling snow.   Northwest Suburban Hoffman Estates has cut four police jobs in its 2010 budget.  The savings here - about $350,000.  In the last 18 months, an additional 38 full-time jobs have been trimmed by attrition in the suburb.

Another source of revenue, in Chicago and its suburbs - Red Light Traffic Cameras.  The devices are quite unpopular, and it is questionable whether they enhance public safety, in the opinion of many.  However, the traffic ticket revenue, at $100/ticket, has filled city coffers with thousands in new revenue at minimal cost.

See our post today via BlogChicagoHomes.com.

DEAN & DEAN'S TEAM CHICAGO