Move UP to Naperville Blog #2

Poorly Designed Town homes

Eileen Landau, ABR, CRS, e-PRO (Realty Executives, REALTORS) — Sun, 29 Jun 2008 12:57:36 -0500

I worked with a townhouse buyer last week...she's over 50...but not a senior.

And as we viewed several properties I wondered about the "new" fashion in town homes in our area. In the past three years builders have been putting up townhomes which are above the garage.

This means that you have to walk up a full flight of stairs. Now, I don't know about you, but I no longer have kids to carry in the groceries. I can't imagine dragging up several bags of groceries every week.

In fact, as the laundry rooms are also on the bottom level, I can't imagine lugging up baskets of laundry either.

What are these builders thinking? Or are they only building for young folks without knee problems? Seems like they're limiting the number of potential buyers.

And, my buyer did buy a townhouse, but where you walk into the house with only one step. And, the kitchen is easily reached from the garage and its hallway. A much more practical floor plan. And, guess what? The laundry room is on the second floor! Smart, don't you think?

Would you like to find a townhome like this? Call me at 630-961-2700 and let's talk.

Countrywide is sued in Illinois

Eileen Landau, ABR, CRS, e-PRO (Realty Executives, REALTORS) — Wed, 25 Jun 2008 11:07:54 -0500

Go Lisa!

Our Illinois Atty. Gen. Lisa Madigan is filing a lawsuit today against Countrywide Financial Corp.

Madigan claims that the lender engaged in “unfair and deceptive” practices which enticed people to get those risky, adjustable mortgages back in the good old days of 2002 to 2006. You know, the mortgages that are now in foreclosure…or close to it.

And, of course, Countrywide is not the only lender who gave away money. So many lenders have or will disappear within the next 18 months, that when the smoke clears the landscape will not be recognizable.

Perhaps, we’ll go back to the old, old days of purchasing a home if we have 20% or more for a down payment. Perhaps, we will have to have a job and an income that makes the mortgage payment affordable.

Imagine that we may have to have money in savings! Yes, savings. A forgotten concept with this generation. If nothing else, this depression in housing and problems in the financial arena should make us all become better financial stewards of our own resources.

As parents we should be teaching our children about savings, rain day accounts, using credit cards sensibly and living within our income.

Can we do it? Can we become examples? It’s certainly worth a try.

A true Rental Story

Eileen Landau, ABR, CRS, e-PRO (Realty Executives, REALTORS) — Wed, 25 Jun 2008 09:53:55 -0500

As many of you know, or are finding out, rentals have become a big part of our business.

So, after doing all the work of finding a rental home for your clients; taking them thru the credit part; collecting certified funds and doing a final walk thru of the property...when do you think you should be paid?

When you give the credit report?

When you give the certified funds?

When you turn over the keys?

At possession?

A month after possession?

Having just done a rental at the end of May, I'm still waiting to be paid! And, it just doesn't seem correct. When we go to a closing in Illinois we receive our commission. So, why should we have to wait on a rental?

Our company is seriously thinking about setting up some consistent regulations regarding rentals. And, I just wish other companies would do the same, as it's unfair to the agents not to get paid (in my opinion) at possession.

What is your company's policy?

How often are you doing rentals now?

Any other ideas?

Naperville Single Family Stats for June, 2008

Eileen Landau, ABR, CRS, e-PRO (Realty Executives, REALTORS) — Wed, 25 Jun 2008 09:33:47 -0500

Eileen's Naperville Single Family Stats for June, 2008

Currently we see the following market statistics:

ACTIVE NAPERVILLE SINGLE FAMILY LISTINGS

Bedrooms #Active Avg LP Avg Market Time

ALL 1391 674,942 193 DAYS

3 290 386,406 156 DAYS

4 893 667,603 192 DAYS

5+ 181 1,224,732 258 DAYS

SOLDS

417 HOMES SOLD

61 PER CENT OF MARKET SOLD

$464,003 AVERAGE SALES PRICE

94 DAYS ON MARKET

So, about a third of listed single family homes have sold in the past six months.

And, the biggest selling range is the four bedroom homes. Notice that prices have dropped by $7,000 in this category. Based upon the Case-Shiller housing monthly housing report, prices have dropped in all the top 20 metropolitan areas.

Buyers with money (either 10% down payment or greater) can pick and choose from a wide selection. And, most sellers will do what they can to help close the sale. In other words, reality is the new word of the year.

Telephone Scams

Eileen Landau, ABR, CRS, e-PRO (Realty Executives, REALTORS) — Tue, 03 Jun 2008 22:25:03 -0500

I have been receiving calls and messages on my cell phone number. It was put on the do not call list long ago.

These callers/companies are making illegal calls and illegal offers. How do I know? Google is my friend.

Whenever I receive a toll-free number or one that I'm not familar with, I do a Google search and a reverse phone search. That generally brings me several pages of information regarding these sleazy callers. And, believe me, they are sleazy.

In fact, one California company was raided in 2007 by the FBI as they were stealing identities. As a result The Federal Trade Commission sued them and the results were filed January 17, 2008, in which the court said that they (the company) was to disclose all the fees and expenses that they would charge. But, from what I'm getting, it hasn't stopped them.

So, if the following numbers come up on your caller ID, don't answer: 877-218-0169 and 978-513-2256.

And, yes, you can file a complaint at www.donotcall.gov

Eileen's Naperville Single Family Stats for May, 2008

Eileen Landau, ABR, CRS, e-PRO (Realty Executives, REALTORS) — Thu, 29 May 2008 15:12:16 -0500

Eileen's Naperville Single Family Stats for May, 2008

Once again the Case-Shiller monthly report shows that prices are down nationwide by as much as 20 percent in some markets, and inventory is up even more.

Currently we see the following market statistics:

ACTIVE NAPERVILLE SINGLE FAMILY LISTINGS

Bedrooms #Active Avg LP Avg Market Time

ALL 1363 673,873 186 DAYS

3 296 381,558 147 DAYS

4 860 675,863 190 DAYS

5+ 180 1,194,897 236 DAYS

56%, or 361 homes, of all active MLS listings have sold in the past six months.

Our prices are coming down as are days on market. Not by much, but every bit helps.

However, did you notice that the average price is lower? (Take a look at my earlier monthly reports)

Where are the buyers? If my experience is any indicator, buyers are renting and afraid to buy because their home value could fall.

Yet, I think that this is actually a good time to buy. There’s not much competition; sellers are ready to sell; and interest rates are still on the low side. If you’re going to stay in your home for more than five years, you’ll do ok. It’s the same principal of buying a stock when it falls and everyone hates it. Takes guts…but also makes you money.

Stats courtesy of MLSNI

What's a Woody/Woodie?

Eileen Landau, ABR, CRS, e-PRO (Realty Executives, REALTORS) — Mon, 26 May 2008 13:19:17 -0500

You never know when you're going to see something that just shouts: Take a picture!

Most of you won't know what this car is, as they stopped building them, I think, in the 1940's...possibly the early 1950's.

This a WOODIE or WOODY...yup, this auto was manufactured with wood siding and trim. It carries its spare on the side...and we didn't see any glass for windows. And, there's even a running board. I suspect (I haven't Googled it) that that they had "issenglass" windows which they probably tied to the struts.

So, if only I had kept my Dad's Chevy ivory/gold Impala.

C Move UP to Naperville, Blog

List to Sell Ratio

Eileen Landau, ABR, CRS, e-PRO (Realty Executives, REALTORS) — Fri, 16 May 2008 10:30:50 -0500

I've noticed that many consumers are searching for an explanation of "list to sell ratio."

So, I thought I'd try to give a simple explanation. In our area, our multiple listing service compiles data on a continuing basis and is able to spit out this information quickly.

The list to sell ratio is found by comparing the actual closed price with the listing price. Now, there is a problem here as some of you may have guessed.

Here's an example: Property lists for $500,000 originally. But, it is reduced to $450,000 over a period of eight months. It finally sells for $400,000. So, what would you guess the list to sell ratio will show?

In this case it would be 88%. This is based on the last price. But if we know the original listing price we can come out with a truer picture. However, I think that the ability to do this is restricted. So, at least, our MLS just uses the last known listing price.

In my subdivision, we had a house come on the market originally for $650,000. Relisted for $550,000. Sold for $500,000. So, if you used the 90% list to sell ratio it would be somewhat accurate. So much better to have your buyer's agent research the property history so that you know before you write your offer.

Another way to use this statistic is to ask your future listing agent what her list to sell ratio is. In other words, if she listed 100 homes and only had 50 sell, then her ratio would be 50%. Average. You might want to consider an agent who has a much higher ratio...closer to 80% or more. Why? Because this agent is probably better at pricing property correctly and knows what needs to be done in today's market. Not every agent does. Fair warning!

C 2008 Move UP to Naperville Blog

A True Story

Eileen Landau, ABR, CRS, e-PRO (Realty Executives, REALTORS) — Tue, 13 May 2008 15:21:11 -0500

You have priced your home to perfection. You have banished all the extraneous "junk." You have hired a stager so that your home shows like a model.

You have had broker tours and Open Houses.

Now, you have an acceptable offer. You've signed the papers. The appraiser has been thru the house. The buyers have done their inspection. The buyers drive by your house daily. They're so excited!

The loan with all its paperwork has gone into underwriting, where it sits for a week. But, out it comes at last. Good to Close! Ah, those magic words. Both the buyers and the sellers are packing.

But...(you knew there was a "but") the property tax report comes back almost $2000 higher due to a re-assessment. (The original annual tax bill is now $10,000 instead of $8,000.) So, the loan goes back to underwriting. And, nothing, now will now get this loan to the closing table.

Sound far out? Not really. The underwriters have been given tighter and tighter requirements and one of my loan officers told me that you need a FICO score of 700 today! Wow, I can remember in "the good old days" when a FICO of 550 would get you into a property!

Times have changed. And, today, every buyer should get a loan approval before looking at homes and then hope that no underwriting guidelines change.

Comparison of March 2007 and March 2008 Home Sales

Eileen Landau, ABR, CRS, e-PRO (Realty Executives, REALTORS) — Thu, 08 May 2008 10:54:10 -0500

Some more interesting Naperville Stats

Our Mainstreet Organization of REALTORS publishes monthly stats for each town in the Chicago Metro area.

Here’s a comparison of March 2007 and March 2008

	March 2008	March 2007
Naperville MLS properties sold	51	74
Average Sales Price	$209,661	$228,830
Median Sales Price	$208,000	$212,000

Wow! As there were 1179 homes on the market this March. So, I guess this is NAR’s definition of a “slow-down.”

And, have we hit bottom yet?

Some Rental Observations

Eileen Landau, ABR, CRS, e-PRO (Realty Executives, REALTORS) — Tue, 29 Apr 2008 09:54:03 -0500

As so many of my clients are planning on renting I'd thought I'd share some observations.

The rental price of a property may have nothing to do with its selling price. Generally, we were told that to find the rental price of a property, you took 75% of 1% of the selling price.

Example: Sales price of a property: $500,000. One percent of that number: $5000. 75% of that number: $3750.

But, I'm not finding that. In fact, I'm seeing rental prices closer to 55% of 1%. In the example above, the rental amount would be: $2750. And, that's what I'm finding. Why? Probably because there is so much competition and owners are tired of paying a mortgage payment on a vacant home.

Also, I'm seeing where the owners expect the tenant to maintain the house, to the extent that the tenant must replace furnace filters; pay for lawn maintenance and repairs. So, expect if you rent a home that you will be taking care of it, as though it was your own!

I've also suggested to my clients that they video the property (with a date stamp) prior to taking possession. And, in addition take pictures of damage to the property when they start their lease. Make two sets of pictures. Send one set, via certified mail, to the owner or management company. Put the other set in a safe deposit box. You don't want to loose your security deposit because you can't prove that the damage was there prior to your moving in.

Expect to pay the security deposit and the first month's rent with a certified or cashier's check. The owners want to know that the money is good. Usually, thereafter, you can pay by personal check. But, again, make sure that your check arrives early. Rent is due on the first of the month, generally. Make sure that your check arrives between the 25th and 28th of the month, or you'll be paying late fees.

And, pet owners. Expect to pay an additional security deposit which may be non-refundable. Some owners will limit the size or weight of the pet to 30 pounds. And, also many towns and counties limit the number of pets per household. In DuPage, the limit is three pets per household.

It's probably a good idea to hire a cleaning crew to clean up before you move in. And, also use them when you move out. Return the property in better shape and surprize the owners.

Naperville’s Single Family Stats for April, 2008

Eileen Landau, ABR, CRS, e-PRO (Realty Executives, REALTORS) — Tue, 29 Apr 2008 09:30:10 -0500

Eileen's Naperville Single Family Stats for April, 2008

Once again the Case-Shiller monthly report shows that prices are down nationwide by as much as 13 percent in some markets, and inventory is up. In fact, according to a report yesterday, the U.S. has never had as many vacant homes as we have now. And, many economist are predicting that we've yet to hit bottom. When we do hit, it’s going to hurt...more!

Currently we see the following market statistics:

ACTIVE NAPERVILLE

SINGLE FAMILY LISTINGS

Bedrooms #Active Avg LP Avg Market Time

|---- ---- -------- ------- ----------- ----------

| ALL 1309 671,256 188 DAYS

| 2 27 352,301 190 DAYS

| 3 284 386,367 147 DAYS

| 4 833 673,079 192 DAYS

| 5 + 165 1,204,603 242 DAYS

53%, or 323 homes, of all active MLS listings have sold in the past six months.

Our prices are coming down as are days on market. Not by much, but every bit helps. There is an additional 100 homes on market since the March report. All signs of a Spring market. However, did you notice that the average price is lower?

Where are the buyers? If my experience is any indicator, buyers are renting. I have 5 “buyers” from Michigan, California, New Mexico, and Florida who are going to rent for at least a year. Yes, they have a new job; but, in many cases they can’t sell their previous homes. And, if the job in the Chicago Metro area doesn’t work out? Then they are not stuck with another home to sell. And, getting a mortgage now is really hard as the underwriters are demanding more documentation in addition to your first-born!

According to AP: The Standard & Poor's/Case-Shiller home price index of 20 cities fell by 12.7 percent in February versus last year, the largest decline since its inception in 2001. Seventeen of the 20 metro areas reported record annual declines.

The index dropped 10.7 percent in January and 9.1 percent in December.

Stats courtesy of MLSNI

April Showers bring Flowers

Eileen Landau, ABR, CRS, e-PRO (Realty Executives, REALTORS) — Mon, 28 Apr 2008 19:10:40 -0500

Wow! Incredible, aren't they? And, you can see these blooming shrubs at the Garfield Park Conservatory right now. They have a show of spring flowers that's just amazing. And, the price? Free. It's under the auspices of the Chicago Park District.

Of course, you could also visit the Lincoln Park Conservatory which is adjacent to Lincoln Park Zoo. Another Chicago Park district attraction.

And, if you're downtown, visit our new Millennium Park which has a wonderful ever-changing garden, and our silver bean: Cloudgate. Stay for a summer concert on the grass.

Ah, life is good...especially in Summer time!

More Freight Trains through Naperville

Eileen Landau, ABR, CRS, e-PRO (Realty Executives, REALTORS) — Tue, 22 Apr 2008 09:39:36 -0500

Canadian National Railway is trying to acquire the EJ&E railroad tracks for $300 million.

I hope that they're stopped. Why?

Because they would increase the number of freight trains going through Naperville and DuPage county horrifically. The old EJ&E tracks for the most part are at ground level. When a freight train with a 100 cars goes through, traffic stops.

The worst intersection is on Route 34, Ogden Avenue, which is a four lane highway at that point. Last summer I waited 20 minutes for a slow moving coal train to lumber by. Traffic was backed up for at least a mile.

Imagine, a freight train coming through every hour! And, is there enough money to build over passes or under passes? Probably not.

Also, the track runs right on the western border of Ashwood Creek and Ashwood Park. Would you want to pay $600,000 to have a freight train in your back yard? I wouldn't.

Many community groups have banded together to stop this acquisition. Let's hope that they're successful or we'll be facing more noise and more traffic tie-ups.

Are you Green?

Eileen Landau, ABR, CRS, e-PRO (Realty Executives, REALTORS) — Mon, 21 Apr 2008 12:08:44 -0500

Tomorrow, April 22nd, we will celebrate Earth Day.

And, I'm wondering what you're doing to "save" the planet.

Here are some of my eco-choices:

I purchased five hunter green reusable shopping bags at our local Jewel grocery store. I keep them in the car and I use them! I refuse all plastic bags whenever I can. In fact, I usually take one of my green bags into Target and have them put my purchases in it. And, I do bring back to the grocery store any plastic bags that have found their way into our place and give the heavier bags to our local used book store.

In many foreign countries, the shoppers carry straw baskets for their daily grocery shopping. And, I don't recall at the farmer's markets in France, that they gave us plastic bags...paper, yes, especially for mushrooms.

I've also purchased those funny curly light bulbs. They're in all my outside lights and in our kitchen fan/light fixture. As bulbs burn out I'm replacing them with these new bulbs. And, I noticed that my electric bill went down by $15.00 and I can't think of anything else that might have accounted for that. And, yes, they do have a small bit of mercury so they will have to go to the recyclers.

And, I do reuse my ink cartridges as that's a no-brainer...and a big savings. I also use recyled paper in my printer.

I mulch our fruit peels and vegetable skins and they go into a recycling bin in the yard. I also don't rake up the cut grass as that enriches the soil as the pieces deteriorate. I've cstopped chemical lawn treatments too. I'll dig up the weeds or pour boiling hot water on them instead. And, I add mulch to the flower beds early in the season so that watering need not be so frequent.

I may try growing plants this year in home made newspaper cups. It's similar to origami; you fold the sheet of newspaper and fill it with soil; plant your seed and then just place the entire cup and plant into the ground. Easy.

Now, when I do my Daily To-Do List, I put errands and places in a logical order so that I'm not wasting gas or back-tracking. I do the same with showings...always mapped out. Our gasoline prices have jumped to $3.70...and it's not summer yet! I was quoted in a news story in 2006 about buyers wanting to shorten their commute and save gas. Today, that's even more important. The first time my fill-up hit $40.00 I realized that we're living in a different world and I don't expect energy prices to go down in the near future.

And, what are you doing?

Becoming a Rental Agent

Eileen Landau, ABR, CRS, e-PRO (Realty Executives, REALTORS) — Tue, 15 Apr 2008 09:52:05 -0500

This market really brings back memories of the early 1980's.

Yesterday, I talked to a client from Michigan who has decided to rent a house in Naperville for the next year. That was in the morning. In the afternoon, I received a referral from a Florida agent. Again, his client wanted to rent a home in our area. And, yes, they can search thru our rental listings. There are over a 100 properties for rent, ranging from one bedroom condo units to five bedroom 2-story homes priced over $3000 monthly.

Currently, I have five clients coming to our area from California, Michigan, Florida, New Mexico and Nevada who are looking to rent as they can't buy. Why? Well, their homes are on the market...unsold...and they are afraid of owning two homes. I can't blame them. It's a tough decision to leave your home vacant and unsold.

The people who are making these decisions are doing so based upon their current jobs. If a new job in Naperville offers better salary and benefits, then the move is made. And, life goes on.

Back in the early 1980's, when mortgage rates climbed up to 18%, many people decided to rent also. They waited for several years until the rates came back down to 12%. Then, they bought. This will probably be what happens here. We need another two years for the market to get back into balance.

In the meantime, many Naperville agents have become rental agents.

Modern Definition of Chutzpah

Eileen Landau, ABR, CRS, e-PRO (Realty Executives, REALTORS) — Thu, 10 Apr 2008 17:44:07 -0500

Here's the old definition: A young man kills his parents, then asks the judge for mercy because he's now an orphan.

And, here's the new definition: A builder sues the bank that gave them money to operate. Their rationale: The bank should have known that the builder was overdrawing its line of credit and should have stopped it.

Yes...this is a real lawsuit that was filed in Chicago in March, 2008 against Harris, Bank of Montreal by Kennedy Homes. And, yes, Kennedy Homes is insolvent and has laid off most of its staff.

But, I'm curious, where is Kennedy Homes getting the money to file a suit that asks for $100 million dollars in damages? And, do they expect, if they win, that this will be the seed money to restart their business?

So, I suppose that we will be seeing more Chutzpah lawsuits as the builders try to stay in business.

And for those of you who would like a "real" definition of Chutzpah: Yiddish term for courage bordering on arrogance, roughly equivalent to “nerve” (in the slang sense). Hmmmmmmmmm, this sounds like Donald Trump, doesn't it?

C 2008 Move UP to Naperville Blog

Seeing Some Market Changes

Eileen Landau, ABR, CRS, e-PRO (Realty Executives, REALTORS) — Thu, 03 Apr 2008 10:40:48 -0500

The nice thing about keeping a paper record of my Naperville market stats is that I can spot trends quickly.

Here's an example:

January 14, 2008 we had 581 Four bedroom homes on the market for an average price of $725,817 with a market time of 239 days. And, yes, January is usually a slow month in our selling cycle. Too much snow (especially this winter) and too much cold!

April 3, 2008 we have 774 Four bedroom homes on the market for an average price of $686,130 with a market time of 196 days.

My take-away. Prices have come down! $39,000 by these figures. Could be a function of inventory. There's 193 more homes in the four bedroom classification. Lots more competition.

Market time has shortened. Why? The mortgage loan limit has been increased to $410,000; FHA/VA remains at $417,000. Still too low for our market...but it is helping sell those properties under $450,000.

Jumbo loans are running at least a point higher than the conventional rates. So, we just put together an interesting twist. Buyer puts down 20%...but, doesn't get below $410,000. However, a HELOC, a second mortgage, will bridge the gap and give him a lower payment. He's happy...and can pay off the HELOC in a short time, while his first mortgage is below 6% and FIXED for 30 years.

We've not turned the corner...yet. But, we're getting there. I'm suggesting that if you are planning on buying to get started now. Interest rates will start heading up in the fall while prices will firm.

The market is still a "buyer's market." Hey, it was a "seller's market" for five years. Things always even out. And, if you're looking for a Naperville area home...contact me.

C 2008 Move UP to Naperville Blog, Eileen Landau

Naperville's Single Family Stats for March, 2008

Eileen Landau, ABR, CRS, e-PRO (Realty Executives, REALTORS) — Wed, 26 Mar 2008 17:51:01 -0500

From the Case-Shiller monthly report we now know that prices are down nationwide (19 out of the top 20 metropolitan areas) and inventory is up. And, we've yet to hit bottom. So, our Spring market may not have much spring in it.

Currently we see the following market statistics:

ACTIVE NAPERVILLE

SINGLE FAMILY LISTINGS

Bedrooms #Active Avg LP Avg Market Time

|---- ---- -------- ------- ----------- ----------

| ALL 1179 687,123 197 DAYS

| 2 23 378,084 179 DAYS

| 3 252 386,304 151 DAYS

| 4 749 691,067 203 DAYS

| 5 + 155 1,202,996 249 DAYS

And, only 47% of these active listings have sold in the past six months.

And, so, we have an increase in our inventory; increases in vacant properties; increases in REO; increases in pre-foreclosure homes and decreases in our prices. (Take a look at the previous months)

Where are the buyers? They're still renting or staying in their "old" homes watching the housing battlefield from the side lines. Prices haven't come down enough for them.

As long as they have a roof over their heads, they're staying put. And, when interest rates dropped earlier this year, many decided to refinance into a lower fixed mortgage.

Stats courtesy of MLSNI

The University of Illinois and computers

Eileen Landau, ABR, CRS, e-PRO (Realty Executives, REALTORS) — Wed, 19 Mar 2008 11:32:59 -0500

I am soooooooooooooo tired writing about the 'sub-slime' mortage mess, that I thought I'd changed the topic.

In this moring's Chicago Tribune (which I still read both online and in hard copy) there was an interesting story that both Microsoft and Intel were investing 10 Million dollars in a new research center at the University of Illinois' downstate campus in Champaign-Urbana.

And that brought back memories of my campus days and our ILLIAC computer, built in 1952. Right in the heart of the campus, there was this monstrous building with no windows. It was enormous and definitely gothic inside.

At the time, I was the "director" of classical music for our student radio station, which included daily programming and the Sunday Opera. As such, after the Sunday show, I would go to the computer center to pick up our computerized log. The log was run on the old green/white striped paper with the holes on either side. FCA requirements then were that we had to do station identifications and then sign the log and notate the exact time of the announcement.

The log printed out our entire week of activities and was printed out on Sundays. So, many times I would go there, and first show my WPGU identification to the guard. Once past the guard and signed in, I entered a dimly lit, temperature controlled head of the computer. Remember HAL from the movie? This computer hummed, buzzed and red and green lights flicked on and off. I'd enter at the top of the building, and then clinging to the metal wire bannister and being careful not to look down thru the wire rungs, I'd climb carefully to the basement. No other human in sight...just the hum, now growing louder.

Finally, somewhere in the bowels of Hades I'd find the gate keeper, probably one of our engineering students, with a plastic pocket protector jammed into his plaid shirt pocket, and a slide rule hanging from his belt. He'd look at me thru his thick, green glasses and say nothing. I'd request the radio log. He'd grunt and groan and get up from his messy table and go search in a pile of accordian pleated print-outs. With a flourish, he hand them to me, once I had signed for their release. Then the trudge upstairs and back to the radio station.

Today, my little hand-held calculator can do more sophisticated math problems that old ILLIAC.

(ILLIAC was the name given to a series of supercomputers built at the University of Illinois at Urbana-Champaign. In all 5 computers were built in this series between 1951 and 1974) Yes, it really existed.

The new computer center will be focusing on making our cell phones more intelligent...but, can they change a baby's diaper?

Chicago Area FHA limit increased to $410,000

Eileen Landau, ABR, CRS, e-PRO (Realty Executives, REALTORS) — Sat, 08 Mar 2008 22:33:27 -0600

OK...we have a temporary limit increase till the end of December, 2008. And, hopefully, they (the government) will make this increase permanent.

In Naperville, the majority of the single family homes are over $400,000. And, we used conventional mortgages because FHA didn't go up high enough. And, truthfully, they still don't. But that's another rant.

Right now, first-time buyers who have a small down payment, generally 3%, will be able to purchase a condo, townhouse or small single family in the Chicago area. For example: a $200,000 property will require $6000 as down payment...and additional savings. FHA likes to see some money in the buyer's checkbook so that they can eat and pay for the move. Now, that certainly seems like Uncle Sam is looking out for us.

But with all government types of loans be prepared to document everything. Plan to spend some time going thru the application process with a loan officier and getting a list of additional proof. Proof that you were born. Proof that you're employed. Proof that you have some money saved (or that you're getting a gift from your parents...that's allowed).

And bring several pens to closing as you'll be signing a mountain of papers. But, when all is said and done, if that's what it takes to get a loan today...then that's what you have to do.

So long, farewell...Countrywide's on its last legs

Eileen Landau, ABR, CRS, e-PRO (Realty Executives, REALTORS) — Sat, 08 Mar 2008 22:22:20 -0600

Countrywide, a California lender, which did lots of business in the Chicago area is being investigated by Lisa Madigan, our Illinois Attorney General. She has asked them to provide her with files of Chicago closings from the past few years. She believes that there is evidence of fraud...and redlining.

And today the Wall Street Journal reported that the FBI in New York, with oversight from Washington, is also looking into "widespread fraud" in the way Countrywide originated mortgages.

And, they are being investigated by the Securities and Exchange Commission for possibly improper accounting.

If this were baseball, I'd say three strikes and you're out. But...this is 'high' finance. Bank of America agreed to buy out Countrywide. I wonder if they still feel good about this purchase! I bet not.

And, if they did hundreds, maybe thousands of these mortgages, I wonder how many will show evidence of fraud. And, while this was happening, their CEO was raking in millions. Maybe he saved some for his legal defense, because I suspect that he's going to need it.

Upping Fannie and Freddie's Investment Limits

Eileen Landau, ABR, CRS, e-PRO (Realty Executives, REALTORS) — Wed, 27 Feb 2008 11:34:57 -0600

Hot off the AP wire this morning:

The federal regulator for Fannie Mae and Freddie Mac said Wednesday it would lift restrictions later this week on the amount of mortgages the government-sponsored companies can hold on their books.

The Office of Federal Housing Enterprise Oversight, acting after Fannie Mae published audited financial results for 2007 on Wednesday morning, (which showed a BIG loss) said the two companies' mortgage investment limits, currently at around a combined $1.5 billion, would be lifted effective Saturday, March 1, 2008.

The caps were imposed in 2006 in response to the companies' multibillion-dollar accounting lapses, thereby limiting their participation in the market for securities backed by home mortgages.

So, what does that mean for us? It means that FHA can do more loans! Means that when we also get that increased mortgage amount some time next week, we will be able to start selling off more inventory.

FHA stilll does 3% down payment loans without requiring King Solomon's jewels or your first-born. Although there is a ton of paper work and forms to fill out! But, end result? You'll be more able to get a mortgage.

And agents? You'll be able to put more sales together. Now there's a pleasant thought as we head into our Spring market. And, how do I know that Spring's coming? Well, the Chicago Tribune is advertising their "Spring Festival of Homes" and is the Trib ever wrong? No, wait, does the Trib ever admit that they're wrong?

More bad news for Chicago Metro real estate

Eileen Landau, ABR, CRS, e-PRO (Realty Executives, REALTORS) — Mon, 25 Feb 2008 21:40:31 -0600

According to the Illinois Association of REALTORS, Chicago-Metro area home sales took their worst one-month plunge since at least 1998. The trade group said on Monday that January sales of both single-family homes and condos were off 34 percent, compared to the same month in 2007.

Thirty-four percent? That's over a third of the market, which leaves 66 percent of all properties on the market unsold. Ouch!

And, here's one reason why according to the Chicago Tribune:

"She, (the seller) too, blames January weather for dampening buyer enthusiasm. But she says she isn't in any particular hurry, and says she's sticking close to that asking price because it reflects how much profit she'll need in order to buy the suburban townhouse she has in mind, rather than what the market will bear in her neighborhood..."

The first rule of pricing that agents learn, is you don't price the property at X because the seller NEEDS that amount. The market doesn't work that way. Probably also explains why she hasn't had one showing in the past two months.

If you really want to sell in today's market, you must price your property at or below fair market value. It's the only way you're going to attract buyers, unless you want your property to remain unsold for years!

We will not be able to reach a bottom until these unrealistic seller are off the market. There's too much inventory and competition.

But, for you buyers, now is an exciting time. Lots of properties; lots of seller concessions. That's if, you can get a mortgage.

Lenders and their underwriters are asking that your application include either your first-born or favorite pet. Well, almost.

Naperville's Single Family Stats for February, 2008

Eileen Landau, ABR, CRS, e-PRO (Realty Executives, REALTORS) — Mon, 25 Feb 2008 09:48:34 -0600

To paraphrase Tolstoy's opening sentence in Anna Karenina:

Happy real estate markets are all alike; every unhappy real estate market is unhappy in its own way.

Currently we see the following market statistics:

ACTIVE NAPERVILLE

SINGLE FAMILY LISTINGS

| Bedrooms #Active Avg LP Avg MT

|---- ---- -------- ------- ----------- ----------

| ALL 1035 717,751 221 DAYS

| 2 21 388,721 161 DAYS

| 3 210 391,757 167 DAYS

| 4 652 712,094 230 DAYS

| 5 + 152 1,237,860 264 DAYS

And, only 49% of these listings have sold in the past six months.

And, so, we have an unhappy market with extended days on market; increases in vacant properties; increases in REO; increases in pre-foreclosure homes.

Where are the buyers? They're still renting or staying in their "old" homes watching the housing battlefield from the side lines.

As long as they have a roof over their heads, they're staying put. And, when interest rates dropped earlier this year, many decided to refinance into a lower fixed mortgage.