Good News Today in Crains!

Dec. 22, 2009

By Eddie Baeb

Chicago-area home sales jump 72% in November

(Crain’s) — Chicago-area home sales soared 71.6% in November compared with the same month last year, according to the Illinois Assn. of Realtors.

CHICAGO-AREA SALES
Below is a monthly year-over-year comparison of home sales (single-family and condo) in the nine-county Chicago area.
Month	2009	2008	Change
January	2,965	3,927	-24.5%
February	3,082	4,326	-28.8%
March	4,260	5,759	-26.0%
April	4,747	6,094	-22.1%
May	5,634	6,927	-18.7%
June	7,140	7,806	-8.5%
July	7,427	7,408	0.3%
August	7,009	6,917	1.3%
September	6,862	6,477	5.9%
October	7,286	5,467	33.3%
November	6,826	3,978	71.6%
Source: Illinois Assn. of Realtors

 

The group cited pent-up demand from buyers, low interest rates and the federal tax credit for first-time home buyers as the reason for the fifth straight monthly year-over-year improvement for the Chicago metro area.

Home sales in November and October of 2008 were extremely low as the worst of the nation’s financial crisis was hitting.

“November’s sales surge reflects the rush to beat the tax-credit deadline,” Mike Onorato, the association’s president, said in a press release. The tax-credit deadline was extended from November through April 30, 2010.

Median prices in the Chicago area, however, continued to fall.

In November, the region’s median price – where half the homes sold for more and half sold for less – was $189,000, down 9.1% from $207,995 in November 2008.

Total sales in the region, including single-family homes and condominiums, were 6,826 compared with 3,978 in November 2008.

In the city of Chicago, November sales were up 69.9% to 1,859 compared with 1,094 homes sold in November 2008. The median price in the city was $215,000, down 3.4% from November 2008.

Statewide, home sales totaled 10,361 in November, up 64% from the same month last year. The statewide median price was $155,000, down 4.3% from November 2008.

Last month, the average interest rate was 4.93% for a 30-year fixed-rate mortgage, according to the Realtors’ release, down from 5.0% in October.

The Illinois Assn. of Realtors’ sales figures include new and existing homes. The nine-county Chicago Primary Metropolitan Statistical Area consists of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.

Market Updates Dec 11th 2009

“HI HO, HI HO, IT’S OFF TO WORK WE GO!” And even those who have been feeling grumpy about the weak labor market found something to smile about last Friday. The official Jobs Report for November was released – and the improving numbers were a big surprise to the markets. According to the Labor Department, only 11,000 jobs were lost in November, despite expectations of 125,000 jobs lost. 2007.  Adding to the favorable news, the Unemployment Rate improved to 10.0%, when expectations were for it to remain at the 10.2% level. While the news was good for the economy and helped Stocks improve sharply, it wasn’t so favorable for Bonds…and as a result, home loan rates moved slightly higher on the news, continuing their worsening trend for the week overall.  In other news, based on early numbers, 195 Million shoppers hit the stores and websites on Black Friday, which was up from last year’s 172 Million. Cyber Monday – the online equivalent of Black Friday – also showed an increase in web shoppers, up by 6% from last year. It appears that the shopping traffic was up, but the dollars-per-shopper may be down a bit. This might be indicative of not only consumers being conservative…but also the fact that with all the deep sales taking place to incent buyers, fewer dollars may be spent to get the very same merchandise as a year ago.

SPEAKING OF THE HOLIDAYS…YOU CAN STILL DECORATE FOR THE HOLIDAYS WITHOUT BREAKING THE BANK. TAKE A LOOK AT THE MORTGAGE MARKET GUIDE VIEW ARTICLE BELOW FOR CREATIVE, COST-EFFECTIVE TIPS FOR SPRUCING UP YOUR HOME THIS SEASON.

Forecast for the Week The week ahead starts out a bit sleepy in terms of economic reports, with no major releases due until Thursday when the Initial Jobless Claims report and the Balance of Trade report will both arrive. Friday will bring another shot of economic news when the Retail Sales Report – the most-timely indicator of broad consumer spending patterns – is released. We’ll also get a look at the Consumer Sentiment Index for an updated snapshot of how consumers are feeling about the economy. In addition to these reports, the markets will be watching the latest round of Treasury auctions. This week’s auctions include longer-term maturities such as 10-year Notes and 30-year Bonds that compete with Mortgage Backed Securities or Mortgage Bonds. So as we’ve been seeing of late, the auctions could cause some volatility, depending on how well they are received.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

Economic recovery gained traction in late fall…..

Dec. 02, 2009

(AP) — The economic recovery gained traction in late fall as shoppers spent a bit more and factories bumped up production. That assessment Wednesday by the Federal Reserve marked its most upbeat view since the economy tumbled into recession two years ago.

The Fed’s new snapshot of business barometers nationwide found that conditions have generally improved since the last report in late October.

Eight of the Fed’s 12 regions surveyed reported some pickup in activity or improved conditions, the Fed said. Those regions were: Chicago, Boston, New York, St. Louis, Minneapolis, Kansas City, Dallas and San Francisco.

The four other regions — Philadelphia, Cleveland, Richmond and Atlanta — described conditions as little changed or mixed.

The new report adds to evidence that the economy is rebounding after the worst recession since the 1930s.

The main challenge for Fed Chairman Ben Bernanke, who will be on Capitol Hill on Thursday seeking confirmation for a second term, is to sustain the fledgling rebound, especially after the benefits of government support fade next year.

To that end, the Fed is expected to hold a key bank lending rate at a record low near zero when its meets on Dec. 15-16. Economists predict the Fed will keep rates at super-low levels well into next year.

With Wednesday’s survey also finding that inflation remains under control, the Fed has leeway to hold rates at record-lows. The central bank hopes that will entice people and businesses to step up spending, which would bolster the economy.

Although the jobs market remains lousy, the Fed survey found some scattered signs of improvement in some markets.

Holiday hiring expectations nationwide were mixed, the Fed report said. And most private economists predict that even as the pace of massive job losses slow, the nation’s unemployment rate — now at a 26-year high of 10.2 percent — will continue to climb into next year. Some predict it will rise as high as 11 percent by the middle of 2010 before slowly drifting down.

The Fed warned last week that it could take five or six years for the job market to return to normal.

That’s why Bernanke and others think that consumers — while appearing to hold up fairly well now to all the negative stresses — may turn more cautious in the months ahead, restraining the recovery.

Consumers in late November spent more, with general merchandise and auto sales improving across much of the country, the Fed report said. Unsure of customer demand, most merchants were keeping stocks fairly lean during the holiday season. Yet some retailers suggested that they have recently become more optimistic about the holiday sales outlook.

The Fed survey also found that manufacturing conditions generally showed some improvements.

Many manufacturers said they were “optimistic about the near-term outlook.” But makers of construction-related materials were still pessimistic, mostly because of expectations that problems in the commercial real estate industry will be prolonged.

In fact, commercial real estate conditions continued to deteriorate, the Fed report said. Most regions were plagued by rising vacancy rates, downward pressure on rents and little, if any, new development.

By contrast, the housing market — sales and construction activity — improved across much of the country, according to the Fed survey. A collapse in the housing market, which dragged down home prices, thrust the country into a recession. A sustained turnaround in housing is a key ingredient for a lasting economic recovery.

South Loop News November 2009

South Loop News November 2009

H1N1: Information is the Best Defense!

Symptom	Cold	H1N1 Flu
Fever	Fever is rare with a cold.	Fever is usually present with the flu in up to 80% of all flu cases. A temperature of 100�F or higher for 3 to 4 days is associated with the flu.
Coughing	A hacking, productive (mucus- producing) cough is often present with a cold.	A non-productive (non-mucus producing) cough is usually present with the flu (sometimes referred to as dry cough).
Aches	Slight body aches and pains can be part of a cold.	Severe aches and pains are common with the flu.
Stuffy Nose	Stuffy nose is commonly present with a cold and typically resolves spontaneously within a week.	Stuffy nose is not commonly present with the flu.
Chills	Chills are uncommon with a cold.	60% of people who have the flu experience chills.
Tiredness	Tiredness is fairly mild with a cold.	Tiredness is moderate to severe with the flu.
Sneezing	Sneezing is commonly present with a cold.	Sneezing is not common with the flu.
Sudden Symptoms	Cold symptoms tend to develop over a few days.	The flu has a rapid onset within 3-6 hours. The flu hits hard and includes sudden symptoms like high fever, aches and pains.
Headache	A headache is fairly uncommon with a cold.	A headache is very common with the flu, present in 80% of flu cases.
Sore Throat	Sore throat is commonly present with a cold.	Sore throat is not commonly present with the flu.
Chest Discomfort	Chest discomfort is mild to moderate with a cold.	Chest discomfort is often severe with the flu.

New Area Code For Chicagoland Area

Due to increased demand for telephone numbers, the Illinois Commerce Commission approved the addition of a new area code, 872, for the same geographic area as the 312 & 773 area codes. Everyone should now begin dialing all local calls using 1+area code + 7-digit telephone number. Effective November 7, 2009, all calls must be dialed using this new dialing procedure.

What is the New Dialing Procedure?
To complete local calls, the new dialing procedure requires callers to dial 1 + area code + telephone number. This means that all calls in the 312 or 773 area codes need to be dialed using 1 + area code + telephone number.

When will the Change Begin?
Beginning November 7, 2009 you must use the new dialing procedure for all local calls. After this date, if you do not use the new dialing procedure, your call will not be completed, and a recording will instruct you to hang up and dial again. All customers should begin using the new dialing procedure before November 7, 2009.

Why is the Change Necessary?
To ensure a continuing supply of telephone numbers, the 872 area code is being added to the area served by both the 312 & 773 area codes. Since more than one area code will now serve the same geographic region, 1 + the area code must be used when dialing any telephone number—including calls within the same area code. Beginning November 7, 2009, new telephone lines or services may be assigned numbers with the new 872 area code.

What Will You Need to Do?
In addition to dialing the 1 + area code + telephone number for all local telephone calls, you may need to:

• Update any preprogrammed 7-digit telephone numbers in your handset to include the 1 + area code, as well as any text or email alert services.
• Reprogram all services, automatic dialing equipment, or other types of equipment that are programmed with a 7-digit telephone number to include the 1+ area code. Some examples are life safety systems, fax machines, Internet dial-up numbers, alarm and security systems, security gates, speed dialers, call forwarding settings, voicemail services, and similar functions.
• Check your websites, business stationery, advertising materials, personal checks, contact information, and your ID tags to ensure the 1+ area code is included.

What Will Remain the Same?
Your telephone number, including current area code will not change.

• The price of a call, coverage area, or other rates and services will not change due to the overlay.
• What is a local call now will remain a local call regardless of the number of digits dialed.
• You will still dial just three digits to reach 911.
• If 211, 311, 411, 511, 611, 711, and 811 are available in your community, you will still dial them        with just three digits.

Proposed Changes For FHA………

FHA had announced new changes to take place on October 1 regarding among, other items, spot approvals for condominiums.  The change implementation date has now been changed to November 2 of this year.  My sources tell me at issue is that FHA wants to place the responsibility on the lenders for the condo approvals in terms of FHA acceptability   Word is (and you heard it here first) that all the major lenders in the USA have refused to accept this responsibility.  Lenders could potentially find themselves in the position of having closed and funded loans, and then have FHA say they are not acceptable under FHA guidelines and not FHA insurable.  FHA is overwhelmed with the project and spot condo loan requests and wants to get the work off their staff.  So, it’s back to the drawing board on these changes.  I’ll let you know when more information is available.

Southloop News Oct 2009

I Don’t Know Why I Go To Extremes

Soutloop News Sept 2009

Sept09 SOUTHLOOP