Chicago homes becoming more affordable

One of the upsides to the slow housing market is the degree to which homes are affordable.
This from Crain's :
An index of home affordability rose to 92.0 in fourth-quarter 2007, up from 87.2 in the third quarter, according to a report by Moody’s Economy.com and Homes for Working Families, a Washington D.C.-based non-profit group that promotes affordability. Falling home prices have helped nudge the index higher, but it has yet to cross the 100 mark — the point at which the market is considered affordable again.

Unfortunately, falling home prices have been offset by the woes in the economy as a whole. Lower rates of income growth and rising unemployment serve to make would be buyers skittish about investing. More importantly, however, tightened lending restrictions are making it harder for buyers to qualify for a loan. Banks “have tightened loan qualifications and imposed increased fees, mortgage rates are higher than they were at the peak of the housing boom and banks have substantially reduced loan-to-price ratios,” the report says.

Chicago's affordability tracks just about equally when compared to 40 other major metropolitan cities.

Schools in the City

Check out the great article in Sunday's Tribune Real Estate section on Chicago schools.

Inner city schools have historically taken a beating (admittedly, with good reason,) for their lack of innovation, poor attendance, security and many other issues. I have often felt that the true test of any "urban renewal" would be the school system. It's one thing to lure 20 something singles to live in the city but to get those people who, 10 years later are married with a kid starting kindergarten, to stay in the city will be the true challenge.

I'm happy to say that Chicago seems to be rising to that challenge--at least in some neighborhoods. As the parent of a 1st grader in Chicago Public Schools, I applaud all those who buck the trend and actually stay in the city to raise their children. Most of us do so with a sense of commitment and the understanding that a school system needs active, involved parents to make it really thrive.

If you have (or are planning on having,) children and you live in the city, you definitely should read this story. Check it out here.

Chicago Median Sales Price Goes Up

New figures released by the Illinois Association of Realtors continue to show a discrepancy between city and suburban home sales.

Area-wide, home sales were down 29% for the month of March. In the nine-county Chicago Primary Metropolitan Statistical Area, home and condominium sales in March totaled 5,753, compared with 8,101 in March 2007, the association said Tuesday in a news release.

However, totals from the city were more forgiving. Sales fell only 11.5% in March in the city of Chicago, to 2,045 from 2,311.

The degree to which the prolonged winter weather effected these totals can't be accurately counted but should not be ignored either.

On the bright side, for those home that are selling, the median sales price is actually rising. The median sale price in the Chicago area rose to $248,000 in March, up 1.2% compared with March 2007. The median price in the city rose 5.3% to $300,000.

Two New Upscale Boutiques in Bucktown

The hip just keep hipper.

Bucktown is getting not one but two new upscale clothing stores this summer. California based Joe's Jeans Inc will open a 1890 sq. ft. storefront at 1715 N Damen avenue in August. Just down the street, New York based clothier Intermix just leased a 2350 sq. ft. storefront at 1633 N Damen ave.

It would seem that this further cements the reputation of Bucktown--a drug and gang infested neighborhood just 15 years ago--as being the boutique capital of world...or at least Chicago.

Energy Efficient Home Electronic Tips

Between cell phones, iPods, computers, DVR's and everything else that we use in our tech savvy lives, we use a lot of energy. Over the course of a year that can really add up to some bucks! Here are a few tips you can use to reduce your energy consumption at home and save you and your family money.

• Look for the Energy Star® label. It can help you identify products that use less energy.

• Unplug mobile phone or PDA chargers when batteries are fully charged or when the chargers are not in use.

• When available, use personal and laptop computers' power management features to control energy consumption.

• When you're finished watching a movie or playing a video game, don't forget to turn off your DVD player or video game console as well as the television or monitor.

• Plug electronics, such as TVs, DVD players and audio systems, into power strips, and turn the power strips off when the equipment is not in use especially for long periods of time.

• Investigate home-networking and automation products and services that let you control heating, lighting and cooling from a central location in the home.

• When in the market for home office products, consider multifunction units combining, say printing, copying, scanning and faxing, instead of a single device for each function.

• Use technology to save money. For example, save fuel by shopping and banking from home on your computer.

"One Book, One Chicago" Goes Noir

The city of Chicago's One Book, One Chicago program has announced it's selection for the spring 2008: The Long Goodbye by Raymond Chandler.

This is a worthy initiative by the city to try to not only spur reading among all citizens but also foster discussion of literature throughout our city. I'm looking forward to reading this classic mystery from one of the 20th century's most celebrated writers.

You can hear a great expose from WBEZ's new magazine Eight Forty Eight by clicking here.

What You Need to Know About Mortgage Modifications

In the wake of the current mortgage crisis, many homeowners are seeking relief from adjustable rate mortgages by working with their banks to modify their loan terms. If you find yourself in this predicament and are attempting to work out a modification with the bank there are a few things you need to know.

1. Get a phone with a speaker or a headset. You will be spending a lot of time on the phone with your bank.
   
2. Take careful notes of every conversation you have with various representatives. Get their names and, if they will give them, their direct phone numbers or extensions.
   
3. Get confirmation when sending faxes. If you are sending documents through the mail, send them registered mail.
   

If you need more information--or even inspiration--check out this article from Newsweek.com. It details the trials of one family who went through this process with a major lender--Countrywide.