Since the Fed gets to decide on both the Fed Funds rate - the rate at which banks borrow funds from each other - as well as the discount rate - the rate at which banks borrow funding from the Fed - it's possible we witness a quarter point reduction in one and a half point reduction in the other.
Stay tuned... 
A quick recap of what is quickly becoming the largest bar crawl known to Wrigleyville: Nearly 4,200 people showed up for 12th Annual Twelve Bars of Christmas (TBOX) bar crawl which dominated all of Wrigleyville throughout the day (and night!) on Saturday. People dressed as gorillas dressed as Santas, Miller Light cardboard boxes specially crafted into Christmas-like sombreros, and more elves than the North Pole itself dominated Addison, Clark, and Sheffield throughout the day. And yes, it did start at 10 am. Luckily though, everyone came prepared - to stave off the early morning hunger, boxes of cereal were abundant. Hang onto those boxes throughout the night and you're guaranteed to be able to last all night long (especially with the really sugary kind...my favorite being Lucky Charms). Note the Capt'n Crunch sprinkled atop Zack's beer in the picture... no this beer-in-cereal concoction is not typical of TBOX; however, an interesting twist on the cereal concept that is famous to the bar crawl. And yes, we got in early for this grand event. Of the almost 4200 people, my number was a very low 52. I took part in the festivities last year and knew it was going to become an annual event for me. So, add TBOX to the list of MUST DO things in Chicago during December. That is, if you can handle beer and cereal at 10am.
I only wonder how many Santa hats and snowflake decorations were strewn down the road early Sunday morning...
So, I just try to enjoy it and forget about having to strap on my boots every time I leave my place. If that means blasting Mariah Carey's "Christmas" CD all day long, then so be it.
So, you wanna get into the holiday spirit but Mariah won't do it for you? You can't miss the following Chicago favorites:
1) The Walnut Room at Marsh..er... Macy's. Re-invented with a new wine bar in the dining room, families of all ages have traditionally come here during the holiday season to admire the massive Christmas tree and dine on anything from steak or chicken pot pie to walnut cookies. But beware... they don't accept reservations so get there early or expect to wait in the mother of all lines.
2)The Joffrey Ballet's Nutcracker. I saw it last year with a group of ex-ballet dancers and I can't stress enough how much a dance enthusiast will enjoy this. You may have seen it before, but it's always good a second, third, or even fourth time around. Heck, make it an annual tradition. 50 E Congress at the Auditorium Theatre.
4)Winter Wonderfest at Navy Pier. More skating, trees, and lights. Basically a winter wonderland of fun!
5)Skiing down the wondrous West Loop Mountains! OK, just kidding. We all know Chicago probably couldn't get any flatter. However I have heard there are a few places you might be able to sled: (a)On Wilson, near Montrose Harbor, at Cricket Hill (b) The hill near Soldier Field, right near the lake path (c)A hill in the Beverly neighborhood. Sorry that's all I've got. You have more suggestions? Send them my way!
More to come...
2. Inventory drops during the holiday season, meaning less competition for your home.
3. Houses show better when decorated for the holidays!
4. Buyers are more emotional during the holidays and more likely to pay asking price.
5. Buyers have more time to house-hunt during the holidays!
6. Some people must buy before year-end for tax purposes.
7. Many people start new jobs in January... those new to the area will be house-hunting before they start.
8. You can be on the market and still have the option to restrict showings during the days you are celebrating at home.
9. You can sell now at a better price and provide for a delayed closing or extended occupancy until early next year.
10. By selling now, you have the opportunity to be a non-contingent buyer during the spring when there are more houses on the market for you to choose from!
The Hanover Companies finds condo developers who are in financial trouble - those who need to SELL their condo units QUICKLY or else sink into even muddier waters. Hanover then strikes a deal with the developer to buy a bulk number of their condo units at a hugely discounted price. Hanover then turns around and sells to investors like you or I at going market rates. The incentive to you, however is such:
-Hanover will guarantee to rent your unit for TWO YEARS at a rental amount which generally covers your mortgage.
-Hanover PAYS YOUR PROPERTY TAXES
-Hanover PAYS YOUR ASSESSMENTS
-Hanover PAYS YOUR UTILITY BILLS (gas, water, sewer, cable)
-Hanover PAYS YOUR LEASING & MANAGEMENT FEES
-Hanover PAYS YOUR CLOSING COSTS
-Hanover gives you a TWO YEAR home warranty. For instance, say the furnace dies - it's covered. The ice maker in the freezer goes bezerk - it's covered. Etc. No worries to you.
This program is available in MANY developments throughout the country - Florida, Arizona, Vegas, Minnesota, and now CHICAGO! The Chicago development is called Vision on State at 1255 S State Street (State and Roosevelt), the heart of the South Loop and just steps away from public transportation and right next to a grocery store. There are 1 & 2 bedroom units available between $290,000 - $410,000. Parking is also available separately. These units are brand new (just finished in June), with granite counter tops, hard wood floors, balconies, washer/dryer hookups, and GREAT VIEWS. The building features a fitness room, business center, dog run, high speed internet access, and 24 hour doorman. There is availability up to the 19th floor. If you have any interest in the Chicago units, or others nationwide, contact me. Don't forget what an investment this might be if Chicago gets the 2016 Olympics where many of the events will be hosted VERY close to this location! See a picture from one of the units below.
Contact me for more information or to schedule a viewing of the available units!
OK, so a few questions you may ask:Q: Do I have to use one of Hanover's lenders to qualify for this program? A: NO! You can use the lender of your choice. However, Hanover does have lenders you can work with if you like - you can get financing up to 90% with them.
Q: How do I know if the rental amount will cover my mortgage? A: The rental amount paid to you monthly = 8% of your purchase price divided by 12. This is USUALLY enough to cover your mortgage. Check with your lender to be sure.Q: What happens after the 2 year program is over? A: From the start, the condo you purchase is yours. Hanover is only the tenant and does not have any ownership rights. After the 2 years is over, you can work with the current renter to continue renting the unit, you can use the unit yourself, or you can sell the unit. It's YOURS... do whatever you like with it.
Q: Can I get out of the program at any point? A: YES, however you must give Hanover 3 months advance notice for lease cancellation; some minor stipulations apply.
Q: They really pay my property taxes and assessments? A: YES. Taxes are paid at 1.5% of purchase price and assesments are paid. Simple as that.
Q: Are prices on the condos negotiable? A: Given that these are competitive going-market rates, the prices set by Hanover are not negotiable if you want to be a part of this program. Contact me if you'd like to see comparable properties in the market.
Q: What if I want to buy one of the condos but I don't want to participate in the 2 year program? A: You can still purchase through Hanover for 12% cash back at closing, should you choose not to take part of the rental program. Or, you can submit an offer to the developer. Contact me for more information.
So for the past 6 months or so I have had what some would call a large obsession with very small puppies. The ones that are like 1 pound. Especially yorkies. So, a couple of weeks ago I found what is now my new favorite store right in Lincoln Park. It is actually called Pocket Puppies Boutique and sells the fiesty little animals, along with all of the clothing you could possibly want to pamper your pooch like a real child. My favorite dog I saw there was a 10 week old yorkie that was 12 ounces!! It had already been sold, so much to my despair, I could not hold it. It was, however, sold for $2500, so I can see why its owner wouldn't want strangers tampering with its delicate little body. There were plenty of others available to hold, however. And hold I did.
The Fed Funds Rate is a short term - overnight - rate. Mortgage rates are long-term - 15 years, 30 years, or even longer. Longer term rates are more affected by the outlook for inflation, rather than by overnight rates. The Fed has been more focused on turmoil in the credit markets and economic growth recently, since current inflation seems relatively tame, meaning the Fed is more likely to decrease rates (to help boost economic growth) than to increase rates (which helps fight inflation).
So, if the Fed decreases rates as it is expected to do, this will likely send stocks rallying, and the dollar falling. With investors shifting assets out of mortgages and into stocks and foreign investments, the likely outcome would be for mortgage rates to actually rise.
However, if you look at the data broken out by region, the Midwest has been more resilient than most to a decrease in home sales. While the number of homes sold in the Northeast dropped a full 10% for September, the number of home sales in the Midwest only dropped by 7%, better than the national average.
Even better, median home prices increased 1.4% in the Midwest, while home prices in the West dropped almost 9%, and the national average was a 4.2% decrease. So, while almost all other areas of the U.S. are seeing falling prices, the Midwest is still appreciating! And I appreciate that. :-)
The Bean, officially named Cloud Gate, is a 110 ton sculpture made of 168 stainless steel plates welded together and polished to an almost mirror-like finish. Designed by British artist Anish Kapoor, it reflects the skyline 360 degrees around it to create a beautiful icon of the city at the entrance to Millennium Park. The $23 million structure is shaped like - you guessed it - a bean, and was funded entirely through private
donations. The original plan was to build it overseas and ship it to Chicago via the Panama Canal. In a likely smart decision, it eventually was decided to build the sculpture on-site in a tent-like enclosure. In a process which took 3 years, you can imagine the suspense the public felt at what was going on underneath that tent. There were several occasions where the tent was lifted to give the public a glimpse of what was going on underneath, but most of the construction was done out view of the public. In the picture to the right you see the structure beneath The Bean's shiny surface. Standing underneath the concave center section of the bean can be likened to standing in the mirror section of a funhouse. I've tried many times to count the number of reflections of myself from The Bean's uniquely constructed "inside", but usually become frustrated around 30. On any given day, you'll find hundreds of locals and tourists posing, photographing, and praising the work of art.
I really felt it was necessary to post this picture. Can anyone tell me who DeKalb's city planner is? He really needs to review City Planning 101. We found this street sign in DeKalb while trying to find a friend's house on Knolls Street... needless to say it was not easy to find.
First, the MBA Mortgage Applications information is based on data received from retail lenders (generally your typical bank or credit union), but the number excludes mortgage applications from wholesale brokers (your LendingTree, Guaranteed Rate, etc.). You may be aware that many mortgage brokers recently have closed their doors amidst the mortgage market turmoil. This means that many customers who normally would have visited that broker have been forced to visit their local banking institution to obtain a mortgage, effectively increasing the number of applications that are counted. In theory there could be the same number of people applying for a mortgage, but many more of them are applying at retail lenders (which are counted in the figure) versus brokers (which are not counted in the figure).
Another item to note is the number counts all applications, whether they are approved or not. Say Joe Schmo goes into his local bank branch, applies for a mortgage, and gets denied. Maybe he does the same thing again the next day. And again the next day. All three of these applications are counted in the MBA Mortgage Applications number. With credit tightening, more people might be getting denied on their first application and going back a second time before they qualify, increasing the number of mortgage applications counted.
So while the MBA Mortgage Applications number is a little skewed, don't let that turn you off of the housing market.
It is a GREAT time to buy: housing inventories are at incredible highs, meaning that as a buyer you have many more choices available to you. Additionally, many developers and sellers have begun slashing prices to sell more quickly.
If you're looking to sell and then buy: while the average time to sell has been a little slower in this market, if you're priced correctly, you will be able to sell. Illinois sales prices are still up from this time of year in 2006 so on the average there are still profits to be made. Say, for example, homes just like yours are going for $15k less than you were hoping to sell for. Well, if you sell for that $15k less, you'll still make up for it on the other side - when you turn around and buy your next house discounted by $15k or maybe more!
What's going on? Maybe this whole global warming thing is hitting us faster than I thought. When I was a kid, I would spend hours of October outside shivering, bundled in my OshKosh B'Gosh jacket and carefully building what I believed was the world's largest pile of leaves, constructed only to break my fall from the picnic table as I jumped from it. This October I'd be better off floating on a raft in a swimming pool with a strawberry daiquiri in hand.
No matter the reason, it's happening. This October is no longer October - it's July. And this "July" there was one very hot marathon. About 10,000 runners didn't even show for the race and another 10,000 were unable to finish. One after another, I saw people struggle to cross the finish line only to collapse at the feet of those in front of them. Talk about determination.
The race always begins and ends right near Buckingham Fountain and usually attracts an enormous number of spectators and volunteers. Starting at Grant Park and going straight up north through Lincoln Park, the crowds can get up to 20 people deep to watch this morning display of will power. Get there early if you plan to cheer on your friends! An easy spot to watch the race is right at the corner of North Avenue and Sedgewick - however this area can get VERY crowded due to its proximity to the purple line. If you want to cheer somewhere that the runners would really appreciate and that you will have a better view, I'd head south. Also, don't expect to be able to watch the finish up close and personal. The finish line is bordered by bleacher seats reserved for those who have special tickets. And if you're going to be watching for someone specific, tell them to wear BRIGHT COLORS. Black and white don't stand out very well in a sea of 30,000 runners. And in weather like yesterday's, don't forget to bring your own ice cold waterbottle.
So as you likely already know, the Cubs won the National League Central Division Championships last week. For most cities, you'd think this would result in several overcrowded sports bars, a long wait for a drink, and a couple of randoms using the world as their restroom. But for Chicago, it results in PURE MADNESS. The photo to the right is of the police brigade required to contain the complete chaos in Wrigleyville.
Now if you moved to Wrigleyville recently and like your peace and quiet, I highly suggest you make it your winter home. Any city that turns its police officers into full-blown equestrians for the sake of a game has a serious case of baseball fever. But don't get me wrong. I love that about this city. I love that the only time Cubs fans voyage south of Van Buren Street is to go to a Bears game. And I love that Sox fans think that 35th is the only useful stop on the Red Line. There are really only two words to sum up the attitude of sports fans in Chicago. Die Hard. 
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