The Olympics are starting this week and I'm here to tell you that the lessons learned in Beijing are definite improvements.
Beijing was the first Olympics broadcast via the Internet and was definitely a step in the right direction for the future of watching the games. With the latest advances, however, Microsoft is trying to create a true TV experience for viewers.
One of the main features will be the option to use your online experience similar to your Tivo experience. You can pause, rewind, and replay during a live broadcast. NBC will be using Silverlight (Microsoft's answer to Adobe Flash) to stream in up to 720p high-definition quality. You will need to have an extremely good connection for this to work.
You will get traditional advertising throughout the games, but now you don't have to wait for pay per view or the recording to become available. Either way you decide to do it, don't get caught at work and GO TEAM USA.
CATHY MALLERS & DEAN'S TEAM CHICAGO
Even though our beloved
Chicago Bears did not make the cut this year,
Super Bowl Sunday is, and always will be, a national tradition celebrated by young and old, male and female alike.
This year's Super Bowl is being held in Miami, with the Indianapolis Colts and New Orleans Saints crushing one another for the ultimate title - to be #1. So don't be left out this Super Bowl Sunday. If you haven't been invited to a Super Party - XLIV, there are plenty to choose from. Here are a few samplings -
Metromix/RedEye Super Bowl Showdown held at Duffy's Tavern & Grill in the Lincoln Park neighborhood. This upscale sports bar has 40 TV sets and three large screens. Your $20 food and drink package, from kickoff until the end of the game, includes a buffet, draft beer, wine, well drinks and soda. Exchange your empty bottle of Bud Light for a square in the Super Bowl Grid for your chance to win cash prizes. Click here for more information.
Super Bowl at Yak-Zies (The Original) is located at 506 W. Diversey Parkway in the Lincoln Park neighborhood. In honor of the Saints, Yak-Zies is designating itself "Where Saints get their wings." While munching on your wings and washing them down with either a $3 mimosa or a $4 bloody mary, you can watch the game on one of their 17 individually controlled flat screen TVs. Click here for more information.
Super Bowl at the Full Shilling is located at 3724 N. Clark Street in the Lakeview neighborhood. The Shilling's specials include $2 Miller Lite drafts, $10 Miller buckets, $3.50 Absolut bloody marys, $3.50 bombs, as well as 35 cent wings and $3 cheeseburgers with fries. You even have a chance to win a 32-inch flat-screen TV. Click here for more information.
Super Bowl at the Pony is located at 1638 W. Belmont Avenue in the Lakeview neighborhood. A free half-time buffet as well as game-time raffles for a chance to win over $250 in prizes is being offered along with $5 20-ounce Miller and Coors drafts and $4 Jameson shots. Private HD TV's are available for all sporting events as well. Click here for more information.
Super Bowl Bash at Casey Moran's is located at 3660 N. Clark Street in the Lakeview neighborhood. A $25 meal package includes food (buffet) and drinks (Absolut cocktails, well drinks and Miller Lite bottles) lasting from kickoff until the final whistle. Take in the game at one of their 30 52" plasma-screen TVs -- there's not a bad seat in the house! Click here for more information.
Super Bowl Sunday Tailgate Party at Harry Caray's Tavern in Wrigleyville at 3551 N. Sheffield Avenue. A $30 food and drink package includes an all-you-can-eat buffet stocked with football favorites as well as domestic drafts and call drinks. The half-time prize is two tickets to Harry Caray's upcoming Blackhawks Bonanza on February 9th. Reservations are recommended! Click here for more information.
Super Bowl-ing Sunday at Lucky Strike Lanes located at 322 E. Illinois Street in the Streeterville neighborhood. The big game can be seen on their 32 big screen TVs with food and drink specials being offered throughout the game. Click here for more information as well as prizes being given away.
For those who have no interest whatsoever in the "big game" or even have a clue as to what football is, Simone's Bar, located in the Pilsen/Little Village neighborhood, will be hosting a No Boys Allowed Anti-Super Bowl Bash. So, instead of watching the big game, you'll be watching past episodes of "Sex and the City". Click here for more information and specials.
And finally, to assist the Chicago Bears in obtaining the title next year, Mahoney's Pub & Grille in the River West neighborhood will be hosting the Super Chili Bowl this Saturday to benefit the Bears Offensive Coordinator Search Fund. Need I say more? Click here for more information.
WILL I BE SEEING YOU AT YAK-ZIES?
SUE MOSS & DEAN'S TEAM CHICAGO
Usually we try to give you current information when talking about our local news and events. This week we want to remind everyone that because Valentine's Day is on a Sunday, it might better to plan ahead. Here are some locations that are offering their own twist on the celebration.
LAKEVIEW
Hearty Restaurant is offering some great beverages to enjoy with your Valentine's brunch. Drinks like the Tuscan French 75 or Rose Water Sparkler are perfect for pairing with crepes for brunch. You'll start off the morning with the warm and fuzzy feeling of bubbles and good eats.
LINCOLN PARK
Okay, you have to love this one just because it pays true homage to the essence of Valentine's Day. DMK Burger Bar is accepting limited reservations for Sunday with the secret word: Aphrodite. They are offering a preset menu of deviled eggs, lobster soup, burgers, truffle fries, a pair of chocolate cupcakes and strawberry shake that comes with two straws.
LOOP
This one may be up the alley of those who are not currently with a Valentine of their own. Bar Louie has a great offer for those who are sharing Valentine's with the friends. Bring a picture of your former love. If you let them shred the picture of your ex, you'll get a free cocktail along with their two for one brunch deal.
GOLD COAST
Located in the heart of the Gold Coast, aptly named Eve restaurant is offering their "aphrodisiac" inspired menu. You can dine on items like Swan Creek pork belly with grilled watermelon or surf and turf braised rabbit and a lobster-rabbit chorizo crepinette with blood orange. The menu is dazzling as is the atmosphere.
OAK PARK
Get your Lady and the Tramp vibe going at local Mancini's. With a location in the heart of Oak Park's downtown area, it's perfectly located to stop for a meal and the head to a movie. Though they are well known for their pizza, their pastas and salads score high in the rankings as well. It's a local favorite so plan ahead.
CATHY MALLERS & DEAN'S TEAM CHICAGO
In this current real estate market many people are deciding to stay in their homes instead of moving up to a larger space. We need to create ways to use the space we have more efficiently.
Add a second rod in the closet. Put a shelf or two above the rods. Put hooks on the wall and back of the door.
Clean out the closets twice a year. Try every item on. Clothing doesn't fit? Donate it. If you haven't worn an item for six month, get rid of it!
Store out of season clothes and extra linens under the bed. Use risers to raise the bed five or six inches to gain even more space.
Use dead space in the kitchen. There are cabinet organizers available for spices and cleaning supplies. Use a wooden roll around cart with drawers and shelves for small appliances and utensils.
A line of decorative hooks hung on the wall can store coats, purses, and scarves. Many come with a shelf on top, creating even more space.
Use trunks made of wood, metal, or wicker to function as a coffee or end table and provide loads of storage inside.
Add inexpensive cabinets in the basement. These can hold off season clothing and other items to free up closet space upstairs.
Weatherproof boxes can have dual functionality by storing outdoor items and also be used for seating.
We can be happy in the space we're in with a little thought and creative solutions for storage.
KATHLEEN WEAVER-ZECH & DEAN'S TEAM CHICAGO
With all the devastion in Haiti, it's a shame to have to report this. So all you nasty swindlers out there, I'm on a mission to make sure you don't take the assistance from people truly in need.
I came across this information from one of the many news sources I like to read. It's called Charity Navigator. In essence, this group rates nonprofits on how responsibly they operate. They look at the day-to-day operations as well as the long-term foundation of the organizations to show viability over time.
One of the easiest ways to look at a non-profit is by reading their annual audit. Each year, qualifying 501(c)3 organizations are required to file their tax documentation publicly in order to maintain their status.
For our friends in Haiti specifically, if you're not sure, check out the website. Or you can take the easy route and send a $10 donation via text message to HAITI at 90999.
CATHY MALLERS & DEAN'S TEAM CHICAGO
Good Afternoon!
Despite recent declines in Homes For Sale Inventory, and moderation in Mortgage Interest Rates and Median Home Prices, Chicago is not out of the woods yet - likely, the Real Estate Market here will remain sluggish.
Why?
Unemployment, in Chicago and across IL, remains very high! So does the percentage of homeowners here either delinquent in their house payments, or at some stage of foreclosure. Until the prospects for job growth improve, and the universe of foreclosures and short sales drops, supply and demand will not be balanced in Chicago. Marked Real Estate Market improvement will not lastingly occur.
Read our post today via BlogChicagoHomes.com for further insight..
Here's our updated Chicago IL Real Estate Stats Pack for last Monday Morning, February 1st.
Communities and clients we serve, reside, or plan to reside, include 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 January 31st 3,430 52 61 33
w/e January 24th 3,411 64 40 27
% CHANGE +0.6% -18.8% +48.8% +22.2%
CLOSED PROPERTIES DATA
AVG SALE PRICE AVG DAYS ON MKT TOTAL VOLUME
w/e January 31stt $234,829 166 DAYS $14,324,569
w/e January 24th $225,619 124 DAYS $9,024,760
% CHANGE +4.1% +33.9% +58.7%
THEORETICAL TIME TO CLEAR EXISTING INVENTORY (ABSORPTION RATE) -
w/e January 31st - LAST 12 MOS - 11.04 LAST 6 MOS - 9.77 LAST 3 MOS - 11.85
w/e January 24th - LAST 12 MOS - 11.03 LAST 6 MOS - 9.54 LAST 3 MOS - 10.58
PERCENT OF HOMES SELLING IN 180 DAYS -
w/e January 31st - 50.24% (UNSOLD - 49.76%)
w/e January 24th - 55.33% (UNSOLD - 44.67%)
SOURCE: MIDWEST REAL ESTATE DATA LLC, AREA MARKET SURVEY DATA
OBSERVATIONS
Is the Chicago Real Estate Market beginning to recover?
Although Active Listing Inventory has been stable for several weeks, Pending Sales have remained low, week to week.. Closed Sales picked up, uncharacteristically for mid-month. Sales Volume, although up considerably versus last week, remains low compared to recent weekly averages. Average Market Time continues high, Average Sales Price - reflective of pricing trends in the Chicago Area as a whole - continues its declining trend.
Absorption Rate - the theoretical time to clear existing homes-for-sale inventory, continues its weeks-long march higher, a very disturbing trend. The Percentage of Homes Selling in an Estimated Six-Month Marketing Time Frame fell considerably over last week. Also troubling!
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.
RATE & MARKET WATCH
Average 30-Year Fixed Mortgage Rates fell once again last week - by 0.02%, to 5.13%, for the week ending January 27th, according to data reviewed and compiled by Bankrate.com. One year ago, in January, 2009, the Average 30-Year Fixed Rate stood at 5.48%, also according to Bankrate.
Many suggest the continued low mortgage rates, combined with the expanded Fed Tax Credit for First Time and some Move-Up Homebuyers may breath life into the housing market this Spring. This might be especially true for less expensive properties - most of which sell to those not needing to sell their current home in order to buy.
Will the trend continue? We'll monitor activity as the Chicago Weather warms to find out. For more info, here's a link to Chris Kissell's column via Bankrate.com.
Please call or email our Chicago Real Estate Team TODAY for Current Trends Data for any Chicago Neighborhood or Suburb.
DEAN MOSS & DEAN'S TEAM CHICAGO
PRICES CONTINUE TO FALL, BUT CHICAGO IL UNEMPLOYMENT STILL TOPS NATIONAL AVERAGE, AND FORECLOSURES LIKELY TO ESCALATE, THROUGH 2010!
Here's the good news . . . and the bad news!
The Level of For-Sale Inventory in the Chicago Metro Area fell by 6.9% during the Fourth Quarter, 2009, according to The Wall Street Journal and Reporter James R. Hagerty. However, Median Prices for Residential Real Estate here, homes and condos, fell significantly last quarter - 9.0%, according to their study.
The WSJ study estimates the level of Chicago Homes-For-Sale Inventory to stand at 13.8 Months during the Fourth Quarter, 2009. On the North and Northwest Sides of the City of Chicago, where our Real Estate Team works extensively, we calculate current homes for sale inventory at 11.9 months. These inventory levels are not only high - they seem to be increasing. Several weeks ago, our Team calculated current home inventory levels at less than 10 months.
Further, the Unemployment Rate here in the Chicago Area still stands at 11.0% - not the highest level for Metro Areas across the U.S., by any means. But it's still considerably higher than the 10% National Average Rate. Most Real Estate Experts agree - if a potential home buyer fears on Friday, that he won't have a job on Monday . . . he won't make an offer on a home over that weekend!
Here in Chicago, an estimated 14.5% of all homeowners are either at least 30 days delinquent in their mortgage payments, or at some stage of the home foreclosure process. That compares favorably to the Miami-Ft. Lauderdale FL Area, where over 28% of all homeowners are delinquent and in distress - the result of a super-heated Real Estate Market during the Housing Boom of a few years ago, and more rapid price depreciation since. But it is still high compared to the Portland OR, Minneapolis-St. Paul MN, and Seattle WA Metro Areas, where the Mortgage Delinquency Rates are 8.2%, 8.6%, and 8.8% respectively.
Across the U.S., an estimated 13.2% of all homeowners are behind in their monthly house payments.
Unfortunately, continued weak employment figures threaten even greater loan default, and many more foreclosures dumped into a struggling-to-recover housing market. Foreclosed and other distressed properties will drive down prices even further. many experts predict.
DEAN MOSS & 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, you dogs! You know, I'm getting a bit tired of all the Text Messages my Lil' Sister, Gracie Ella Moss, has been getting recently! Every time she finds a new boyfriend, there is a constant din of "Luv U Lil' Furball" and "Got Bonz?" over my cell phone.
Geez . . . can't she get her own plan, for crying out loud?
You know, for years, the majority of us dogs, and most humans as well, have become very irritated at those "Early Termination Charges" imposed by the big Cell Phone Carriers. AT & T, Sprint, T-Mobile, and Verizon Wireless have had them for years. So has Chicago Regional Carrier U.S. Cellular.
Now, even search engine giant Google is getting on the Early Termination bandwagon. Buy one of their new, nifty Nexus One phones, with the super-cool Android Operating Platform, but cancel early? You'll be hit with a $200 Early Termination Fee from carrier T-Mobile, plus an additional $350 fee from Google itself.
Woof . . . that's up to $550 in Cancellation Charges if you don't keep your plan for at least two years!
Within the last couple of years, the big carriers have eased off a bit - most have discounted the Termination Penalty a bit, on a pro-rata basis, if you cancel with only a year or less left on your contract. Often times, however, if you are just dissatisfied with your carrier's service, or want to take advantage of a slick new phone or discounted price deal offered on another Cell Phone Network, you simply have to wait it out . . or, pay a stiff penalty!
But now, according to Reporter David Sarno in The Chicago Tribune earlier this week, the practice of charging stiffly for Early Termination has drawn the ire of the Federal Communications Commission. They have sent letters to each of the major contract carriers questioning the process, and whether it is truly fair to the U.S. Consumer. The firms' answers will be treated confidentially.
Cell phone carriers contend the Early Termination Charges, along with Long Term Cell Phone Contracts, allow the companies to discount the cell phone handset itself, resulting in wider acceptance and use of the phones. They contend lower handset pricing ensures consumers can purchase the latest and best phone hardware and technology, without a stiff handset price.
The practice is far different in most countries in Europe and Asia, where consumers pay full retail for the handsets, and later acquire a SIM Card so they can easily swap among carriers.
As the Only IL Dog with a Real Estate Broker's License, I have become quite a heavy cell phone addict. I would do more texting as well, but for me it is often to hit those tiny keys with my little paws!
But, in my lil' opinion, a balance has to be struck, one which is more fair, to we dogs in the profession, as well as our associated keyboard-punching humans!
You think?
Enjoy the weekend, you dogs!
YOUR ACE REPORTER ON FOUR PAWS,
BUDDY HOLLY MOSS & DEAN'S TEAM CHICAGO
As we close out January 2010, it's going to be another cold one here in Chicago. But that's why we love living here - right?
Well, the secret to surviving a Chicago winter is, as the saying goes, "if you can't beat ‘ole man winter, then join him!" So, two possibilities this weekend are -
Snow Days Chicago - a three-day winter festival in Grant Park. Over 27 beautiful and unique sculptures, made entirely out of snow, will transform the City into a winter wonderland. Snow sculpting began this past Wednesday with selected Teams and wraps up at 3:00 p.m. on Saturday. Don't forget to cast your vote Saturday between 11:00 a.m. and 4:00 p.m. for the "People's Choice Award". The Awards Ceremony, open to the public, will take place Saturday at 6:00 p.m. at the Chicago Hilton and Towers in the Waldorf Room.
Besides the snow sculpting competition and the high school snow sculpting exhibition, Snow Days also features dogsled racing and weight pulling demonstrations, a snowboard rail jam and kids' activities at the Activities Igloo. So bring your whole family out for a full-day of fun in the cold! It's free too!! Click here for further information as to times and any last minute major changes due to unsafe weather conditions.
Did you happen to miss out on the Polar Bear Club New Year's Day Swim at North Avenue Beach? Guess what - you can redeem yourself this Saturday at the 9th Annual Lakeview Polar Bear Club's Polar Plunge at Oak Street Beach (1000 N. Lake Shore Drive). Participants are to meet at 11:30 a.m. for a pre-plunging photo shoot before frolicking in the icy waters of Lake Michigan at high Noon. After you thaw out, Galway Bay Pub will host an evening after-party from 9:00 p.m. to midnight. Besides serving up drink specials, raffle tickets will be sold for $2 each to help raise funds for two local families in need of support. Click here for helpful hints for you Polar Bears as well as information on the two local families.
On a much warmer note, the Windy City Rollers Season Opener is Saturday at the UIC Pavilion (525 S. Racine Avenue). It's a double-header evening for the roller derby league beginning with Hell's Belles vs. Double Crossers, followed by Manic Attackers vs. The Fury. Our ladies team reigned #1 in the Women's Flat Track Derby Association's North Central league in 2009! For more details and ticket information, click here.
Lastly, there's the Winter Music Festival at Uncle Fatty's Rum Resort in the Lakeview neighborhood. This week long bash, along with the adjoining bar The Coach House, features cover bands, DJ's and drink specials. Click here for the music line-up, and stop staring at your four walls!
Don't let ‘ole man winter get you down in the dumps!
SUE MOSS & DEAN'S TEAM CHICAGO
OF OVER 7.5 MILLION UNDERWATER HOME OWNERS, ONLY A SMALL PERCENTAGE APPLY FOR LOAN MODS, AND FEW ACTUALLY RECEIVE THEM!
Going back not more than 4 years or so on the North Side of Chicago, strong, annual, unabated appreciation for homes and condos seemed pretty automatic. Even in neighborhoods on the outskirts of rapid development or vintage rehab, a minimum 3% annual appreciation could be counted on for over a decade.
Before the mid-1990's, and as far back as most in Chicago remember, meteoric appreciation was never a given, but stability in home prices was taken for granted across the years..
Not so today, in modest Chicago Neighborhoods such as Rogers Park, on the Far North Side along Lake Michigan, where rapid construction of new row house units and renovation of 75-year-old vintage homes and apartment buildings into luxury residences seems to have over-saturated the market. According to some local estimates, more than 50% of these recently-built or improved properties. encumbered by high-leverage mortgage loans, have their left their owners underwater.
Today, the negative difference between market value and outstanding loan balance exceeds tens of thousands of dollars!
What options do these distressed homeowners have?
Some have investigated taking advantage of the Fed's Home Affordable Mortgage Program. The program, introduced in early 2009 through the U.S. Treasury, is geared to reducing interest rates, and resulting monthly payments, for qualified homeowners in trouble. For the most part, successful applicants have their Interest Rates reduced. Outstanding Loan Balances are typically not written down.
However, in order to qualify, prospective homeowners have to prove they have a good-paying job, and that their estimated market value has not fallen more than 25% below their loan balance - a tall order here in the Rogers Park Neighborhood, and elsewhere.
Further, according to Wall Street Journal Reporter James R. Hagerty, red tape and paperwork has discouraged many from participating in the Loan Modification Program. Currently, prospective Loan Mod Applicants must provide recent check stubs, a letter detailing the reason for their hardship, and copies of their last two years tax returns. Until all docs are received by the bank, borrowers are sometimes granted temporary loan modifications, contingent on lender receipt of all required documents.
Delays and confusion caused by lender requirements, combined with sloppy systems for receiving required documentation by some banks, have left many would be loan-modified borrowers out in the cold. Indeed, as of the end of 2009, out of an estimated 900,000 borrowers offered temporary loan modification, only about 66,000 have gotten their loan modification made permanent.
Nationally, as of the end of September, 2009, roughly 7.5 Million Households - a staggering 14% of all home mortgage loans - were either delinquent in their house payments at least 30 days, or were at some stage of the Foreclosure Process, according to the Mortgage Bankers Association. For some severely "upside down" in home value versus mortgage balance, the decision to simply "walk away" is often seriously considered.
With new changes, effective June 1st, no Loan Modification can be started without necessary documentation already received. The objective here - to avoid the problem of starting a loan mod program on a trial basis, only to later deny permanent modification on the mortgage loan.
However, it is unclear whether this procedural change will actually result in more successful modifications being written.
Further, some experts feel the only road to permanent relief to underwater homeowners is to reduce principal balances due, on both the first and secondary mortgage loans, to bring them more into reality with market pricing in today's market. That, however, is less likely to be adopted on a wide scale.
DEAN MOSS & DEAN'S TEAM CHICAGO
There are about 5,000 or so possible
ingredients that make up dust. Dust mites feed on the skin cells that we and our pets shed every day. Tiny particles of soil and sand join fibers from clothing, carpet, drapes and furniture. Add in mold spores, pollen and bits of plants and insects and you have an allergy aggravating miasma.
Old carpets shed fibers and hold onto dust. Consider replacing old carpets or better yet replace with hard surface flooring. Every time you walk across a carpet your feet knock particles into the air. With forced air heating these particles float with the air currents throughout the house. Carpets and padding will deteriorate over time, becoming brittle and breaking into fine particles which contribute considerably to dust.
Replace your old furnace filter with a high efficiency pleated one. Change it once a month. Vacuum often but make sure you use a HEPA filter, otherwise you're just spreading around the dust. Duct cleaning is not really necessary unless you just had remodeling done or if they have never been cleaned.
Always use a sturdy mat with a rough surface outside the door so everyone can clean their shoes before entering. Put outdoor clothing in a closet and keep the door shut.
We all love our pets but like it or not they are a source of much dust. Launder their sleeping areas frequently, and bathe and groom animals regularly.
KATHLEEN WEAVER-ZECH & DEAN'S TEAM CHICAGO
TIMING OF CHANGES CAN LIMIT PURCHASE OPTIONS, INCREASE COSTS IN A STILL-TROUBLED REAL ESTATE MARKET!
It wasn't that long ago that low-down payment home borrowers, as well as those with less-than-perfect credit, had a number of places to go for their mortgage loans. As credit markets collapsed, housing values tumbled, here in Chicago and elsewhere, options for these borrowers dwindled.
In many cases, the only option available now is an FHA-Backed Loan, with it's lower overall FICO Credit Score and Down Payment requirements.
Using an FHA Loan, buyers have been able to purchase with as little as 3.5% down for their primary residences. The FICO Credit Score floor was a very buyer-friendly 500, although most lenders imposed stronger credit requirements for FHA Loans they issued - generally, around 620 Minimum FICO Score.
Buyers could also request a credit toward closing costs from the seller of up to 6% of the negotiated home purchase price, although this often drove the final price of the home higher than if no seller concession had been requested.
To cover the risk of such a loan, all FHA loans required a Mortgage Insurance Premium, paid up-front, of up to 1.75% of the loan amount. This sometimes-sizable premium could be added to the amount financed by the buyer.
In addition, new FHA homeowners had to pay an additional 1/12 of the initial MIP on a monthly basis, often adding a couple of hundred dollars to the new homeowner's monthly payment.
For Condo Buyers, New or Existing Condo Projects not having prior approval by the FHA could be Spot Approved for individual unit sales, assuming the project itself had no Right of First Refusal for board purchase in their By-Laws, and the association was fiscally sound and predominantly owner occupied.
Beginning later in 2009, however, according to Chicago Tribune Reporter Mary Ellen Podmolik, FHA Rules are about to get tougher.
For condo buyers, the FHA Spot Approval option is being eliminated effective February 1st. To qualify for FHA funding, the complex itself must have been approved in advance of the offer, or before a loan can be closed. If the condo project is not currently approved, a projected long FHA Approval Timeline could forestall new buyers.
Buyers with lower than 580 FICO Credit Scores will now have to ante up a 10% Down Payment, up from the prior 3.5% level. This should not impact many new FHA Buyers, however, as most lenders impose a higher 620 Minimum FICO Score anyway. Some lawmakers, however, have proposed a minimum 10% Down Payment Requirement for ALL FHA buyers, to better stabilize portfolios of FHA loans.
This Spring, the FHA will start requiring 2.25% for up-front Mort age Insurance Premium, a 28.5% increase from current levels. It is not certain at this point how much the additional Monthly PMI Payments, added to Principal and Interest Due each month, would be increased as well.
Finally, the Maximum Seller Contribution to Closing Costs for FHA Loans would be cut in half - to 3%. In essence, those buyers with little availability money to go toward closing costs will be impacted here.
The FHA plans to impose its new FICO Score requirement sometime this summer. The Maximum Seller Contribution reduction to 3% will likely be imposed at about the same time.
Do the FHA changes represent stumbling blocks for many potential homebuyers, at a time when the housing market is trying to recover? The next few months will tell!
DEAN MOSS & DEAN'S TEAM CHICAGO
ACROSS CHICAGO AREA, FOR 2009, HOME SALES DOWN ONLY SLIGHTLY VERSUS 2008!
Is the Chicago Area Real Estate Market beginning to show signs of stabilizing?
Improving numbers for year-over-year Units Sold - the aggregate for sold condos and single-family homes across the Chicago Metro Area - has been on the upswing since last July. As a result, this resurgent Second Half, 2009 for home sales means overall units sold here fell only 0.2% from 2008.
According to data complied by the Illinois Association of Realtors, as reported by Mary Ellen Podmolik of The Chicago Tribune, 5,752 single-family detached homes and condos were sold last December. That's one-third better than home sales during December, 2008.
IAR figures show a total of 69,290 homes were sold and closed last year.
Unfortunately, however, this Chicago Silver Lining also has a dark cloud.
December prices were still down considerably over year-ago numbers. The Chicago Area Median Price for December, 2009 for condos and detached homes dropped 10.4% over one year earlier - to $183,000.
Looking at the full year, 2009, the Median Chicago Area Home Price tumbled even more strongly - 18.3% versus 2008. The one-year aggregate Median Price in the area was $196,000 at year end. One likely culprit - staggeringly-high levels of bank-owned foreclosed properties, as well as homes selling for deep discounts via Short Sale.
Statistically, a "median" is the level at which half of the units sold were priced above, and half below.
In terms of Units Sold, the strongest year-over-year sales gains occurred in Cook County, the county which includes the City of Chicago. Despite a 10.7% county wide drop in Median Home Price last December, Cook County saw a 43% in units sold versus December, 2008.
Units Sold figures for the Suburban IL Counties surrounding Chicago - Lake, DuPage, Kane, McHenry, Will, and Grundy - also showed significant gains in Units Sold in 2009 versus 2008.
Here in the City of Chicago itself, 2009 totals were considerably more subdued
For the year, Chicago Condos and Home Sales dropped 7.4% , to 19,401 Units. The 2009 Median Home Price in the city - $225,000 - a 22.4% decline versus 2008.
The extension of Home Buyer Credits to First Time and some Repeat Home Buyers to include properties under contract before April 30, 2010 may spike home sales through early 2010. However, high IL and Chicago Unemployment Figures - statewide, at 11.1%, considerably above the U.S Average, may temper interest among potential buyers. Further, IL has shown 24 months of continued job declines through last month.
Across the U.S., according to Wall Street Journal Reporter Jeff Bater, existing home sales fell 16.7% in December, versus economists expectations of an approximate 11.6% fall off. High rates of unemployment continue nationwide, dampening housing market recovery. At the same times, lenders continue to tighten credit requirements for new home loans.
DEAN MOSS & DEAN'S TEAM CHICAGO
This week we wanted to highlight those events that are relevant to entertainment and, especially, raising funds for Haiti. Hope you enjoy these events.
NORWOOD PARK
So it's a little early but now is a good time to get in to see a VIP screening of the movie Valentine's Day. Metromix is sponsoring a special advanced screening based on your submissions of a special play list.
Simply send your email to metromixpromotions@tribune.com containing a link to the completed list titled "My Ideal Valentine's Day Date." For full instructions click here.
LAKEVIEW
This Saturday, go to the Rink at Wrigley for a skate to benefit the victims of the earthquake in Haiti (proceeds donated to the American Red Cross). The skate will go from 8:30 a.m. to 10:30 a.m. and be open to the public.
The suggested donation is $20 per individual or $40 per family and Congressman Quigley will be matching all donations.
LOOP
Hearts for Haiti, live music gives way to a DJ-fuelled party featuring Joe Kollege, Corey Vicious, Steve Bravo, Timbuck2 and 33 1/3. Proceeds and donations (medical supplies and cash) benefit Doctors Without Borders and International Child Care earthquake relief efforts.
LINCOLN PARK
We've all heard about the devastating events in Haiti and now local tavern, Duffy's is hosting a benefit for the Red Cross.
From 7-10pm Duffy's is providing a $30 package to include a buffet, all drafts, call drinks, wine, soda and a donation to Haitian Relief.
OAK PARK
Hope for Port-au-Prince, Haiti. Get your hair washed and styled with all proceeds to benefit the Red Cross' efforts to help earthquake victims. Cash, clothing and water donations are also accepted.
The fundraiser also takes place at Yehia's locations: 1455 E. 53rd St., 1380 E. Hyde Park Blvd.; 529 S. Dearborn St.; 4001 W. Flossmoor Rd., Country Club Hills; and 328 Madison St., Oak Park.
CATHY MALLERS & DEAN'S TEAM CHICAGO
Now is the time to mark your calendars for another anticipated mega-launch by Apple.
This Wednesday, Apple is slated to announce its new tablet device at 12:00pm CST. As for a preview of some of the rumors, here is what Engadget has to say.
The tablet will come with a virtual keyboard -- kind of a no-brainer if it's gonna be a keyboard-less tablet and not, say, another laptop.
Apple's been talking with The New York Times, Conde Nast, and HarperCollins / News Corp. over how they could collaborate. When asked, NYT Chairman Arthur Sulzberger would only say "stay tuned."
Electronic Arts has been working closely to prep games for the tablet. We know of a number of gaming journalists who've gotten invites to next week's event, and given Apple's heavy games push over the past year or so, this wouldn't surprise us in the least.
A reaffirmation of earlier murmurings about potentially swapping Google for Bing as the default search engine. Maps, too!
Those TV subscription rumors? Apparently the gang in Cupertino have been pitching a "best of TV" service that would package the best four to six shows per channel.
A web-based version of iTunes, tentatively called iTunes.com and potentially launching in June, for buying music outside of the dedicated app. Additionally, there'd be a new initiative "to populate as many webs ites as possible with 'buy' buttons, integrating iTunes transactions into activities like listening to internet radio and surfing review web sites." No mention if music will be downloaded or streamed from the cloud, but we can definitely see how Apple's recent Lala acquisition would play into this in the future -- in fact, we've already seen it start to bear fruit.
Here's a weird one: Apple has supposedly designed the tablet "so that it is intuitive to share." One such experiment is virtual sticky notes that launch for the intended recipient by facial recognition via built-in camera.
There is sure to be quite a lot of coverage for this event moving forward and here's the site with streaming video from the event.
