Dean Moss - Dean's Team Chicago Real Estate Team

The U.S. Economy is improving, despite a 26-year high in the U.S Unemployment Rate. Interest Rates are low - less than 5% for some borrowers. President Obama today extended the popular First Time Homebuyers Creditwell into 2010, and extended to program to include many existing homebuyers as well.

But inflation is low. The Real Estate Market is still sluggish, here in Chicago, and across the U.S. And the Fed, it seems, is not planning to upset the apple cart by raising rates at this time, as reported in the Wall Street Journal yesterday by reporter Jon Hilsenrath.

The reason the Fed would eventually increase their key Federal Funds Rate - the rate at which banks lend to each other overnight - would be to curb inflation. However, at this point, inflation has not taken a foothold, despite an economic recovery in some sectors.

Currently, the Fed Funds Rate is close to zero, and many mortgage interest rates tied to it - especially rates on Adjustable Rate Mortgages and Home Equity Lines of Credit - have seen significant declines over the past year.

Alternatively, it is possible that keeping interest rates so low for an extended period, coupled with a heavy pumping of Federal Funds into the U.S. Financial System, could eventually create inflationary pressure in and of itself.

At last week's meeting of the Federal Reserve Board, the Fed elected to purchase $175 Billion in Corporate Debt issued by U.S. Mortgage Investors and Guarantors Fannie Mae and Freddie Mac. Their original plan was to buy $200 Billion of such debt.

To date, the Fed has completed its early 2009 plan to purchase $300 Billion of securities from the U.S. Treasury. It plans to complete purchase of roughly $1.25 Trillion in Mortgage-Backed Securities by next March. These moves are designed to put more money in the U.S. Financial System, and encourage lending by big banks.

Is the plan achieving the Fed's desired outcome. Some experts feel - not yet!

But low interest rates for mortgage loans, despite what seems to be ever-tightening standards for home financing - have helped spur home purchases by qualified borrowers, although not to the extent those in the real estate industry would like to see.

See our post today via BlogChicagoHomes.com.

DEAN & DEAN'S TEAM CHICAGO

THE CHICAGO IL REAL ESTATE MARKET, AND OTHER THINGS CHICAGO, FROM THE POINT OF VIEW OF A LITTLE WHITE DOG!

I am so sorry I am tardy with my weekly post, you dogs! Over the last several days, I have been a bit under the weather. My Human Mom, Dean's Team Member Sue Moss, told me that sleep would be the best remedy.

As you see here, I am actually sleeping, while completely awake!

Most dogs I know do have a programmable cell phone - although text messaging is a bit hard for those of us with no opposable thumbs in our paws. Virtually all of us have land line phones with a Speed Dialing Feature.

Starting tomorrow here in Chicago, however, we all expect a bit of chaos to ensue.

As reported in yesterday's Chicago Tribune by Reporter Kayce T. Ataiyero, the City of Chicago is getting a new area code, the first new area code in city limits since 1997, when the 773 Area Code came to Chicago Neighborhoods outside of Downtown Chicago and The Chicago Loop. Many longtime Chicago residents curse the day they lost Area Code 312.

This new three-digit code - 872 - will be assigned only to new numbers in the city itself - current numbers in the in-city 312 and 773 area codes will not be changed.

However, thousands of cell and land line phones currently programmed to speed dial only 7 digits for numbers in a user's own area code will have to be re-programmed to now dial 10 or 11 digits.

Effective early tomorrow, everyone dialing within the 312 and 773 codes will have to dial that area code before the seven-digit phone number. Land line users will have to enter "1" before the area code.

Although 10 or 11 digit dialing has been standard in most Chicago North and Northwest Suburbs for years, City of Chicago Residents have been spared this added inconvenience. But that is about to end!

As of tomorrow, the Chicago Metro Area will have a total of 10 area codes. The City of Chicago itself will have three - 312, 773, and 872. The Northwest Suburbs now have two - 847 and 223. The Western Suburbs - 630 and 331. The Southern Suburbs, and some close-in Western Suburbs - 708. Further West - two area codes, 815 and 779.

A bit of nostalgia, you dogs! Up until 1988, Chicago and most of the Chicago Suburbs only had ONE area code - 312. My Human Dad, Team Leader Dean, longs for those wistful, simpler times.

You folks out in Wyoming, where there is only one area code for the ENTIRE STATE - we envy you!

Enjoy the weekend, you dogs! Dial carefully!

Please read my post today via BlogChicagoHomes.com.

YOUR ACE REPORTER ON FOUR PAWS,

BUDDY HOLLY MOSS & DEAN'S TEAM CHICAGO

Earlier today, the drama on whether theFederal First Time Homebuyer Tax Credit would be extended into 2010 came to an end.

As reported on CNN Money.com, by reporter Tami Lubby, President Barack Obama signed a program extension which gives First Time Buyers an $8,000 Federal Income Tax Credit, provided they contract for their new home on or before April 30, 2010 (the transaction must close on or before June 30th).

The extension of the popular First Time Buyer Credit was attached to a bill extending Unemployment Benefits, on a day when the U.S. Unemployment Rate was reported at a 26-year high 10.25%.

It also provides an incentive to purchase another home to many existing homeowners - those who have lived in their homes at least five of the past eight years - of up to $6,500.

For purposes of this legislation, the definition of a First Time Homebuyer is unchanged - the purchaser must not have owned a home within the last three years.

Under the new program, the maximum adjusted gross income for qualifying homebuyers increases to who $125,000 for single taxpayers, $225,000 for married buyers who file joint tax returns. The previous limits on income were $75,000 and $150,000 respectively.

The maximum home price to qualify for the tax refund under this program - $800,000.

Our Chicago Real Estate Team has helped over a dozen first-time buyers find new homes and take advantage of the straight tax refund program thus far in 2009. For many, the credit meant the difference between buying now, or staying on the sidelines to see if declining Chicago Home and Condo Prices would fall any further.

In the last couple of weeks, as the chances for a timely closing before the November 30th credit deadline waned, several of our buyer clients slowed down their home searches, waiting to see if the credit would be extended. This afternoon, our Team received several calls from buyers wanting to resume their search now that the credit extension has been solidified.

Nationally, the National Association of Realtors estimates the First Time Homebuyer Credit has been used by over 1.8 million families. They calculate that roughly 355,000 of these buyers may not have purchased if not for the credit.

Through September, according to the Internal Revenue Service, 1.4 Million taxpayers filed for the credit. Some of these home buyers, however, took advantage of an earlier $7,500 tax credit, in effect in late 2008 and early 2009. This earlier credit required repayment over 15 years, or when the home was sold. The current program requires no repayment.

NAR First Vice President Ron Phipps credits the program with increasing sales to over the 5 Million Units mark. It also has trimmed homes-for-sale inventory, although he was not specific as to number.

The estimated cost of extending the tax credit - roughly $10.8 Billion over the coming 10 years, according to the Joint Committee on Taxation.

Please read our post today via BlogChicagoHomes.com.

DEAN & DEAN'S TEAM CHICAGO

Hey, folks!

It's the middle of the night, I'm on the Second Floor of a Bungalow on the Northwest Side of Chicago, and I'm composing a blog post!

Am I a die hard . . . or what?

Do you sell for a living? Real Estate? Something else?

Well, if you're in any kind of relationship-based selling or consulting business, where most of your income is derived from what you sell, rather than how many hours you work, you've heard the following words -

LEAD GENERATION! Or, as some prefer . . . PROSPECTING!

Every day, we each go into our offices, or stick our Bluetooth Headsets in our ear and head to the car, or to the local Starbucks, list of prospects in hand, and hit the phones.

We try to mine for gold from the clients we currently serve. Or have served. Or those prospective clients we met casually - at a networking event, at a party, or on the street.

But what do you do if business is down. Further, what is the next step if calls to those you have worked with, or those you know closely, bear little fruit?

Those in the Real Estate Business have recently seen buyers move back to the sidelines pending extension of the Federal First Time Homebuyers' Tax Credit. Or, they are waiting to see if the current, set to expire the end of this month, will be expanded to current homeowners, not just first-timers.

Sellers - if they are not truly motivated - either by wanting to move voluntarily, or, unfortunately, involuntary, due to financial hardship - are delaying going to market until things get better. When? No one knows!

Several top Realtors in our Keller Williams Lincoln Square, Chicago office are taking a very successful paradigm-shifting class called BOLD. This seven-session, once-a-week class is geared to instill the habits, skills, and attitude necessary to succeed in the real estate business today.

And one of the things the class emphasizes is LEAD GENERATION . . . and lots of it!

Each class participant is required to make at least 100 Phone Contacts each week. Not just calls to voice mails or answering machines, folks. Actual calls, and attempt to get actual listing appointments - at least 5 each week!

Sounds good, doesn't it! Those who know me know I prospect or lead generate religiously - and I only call 15 people each morning - about 75 each week. Contacts - about half that number. Usually, one or two listing appointments each week - hopefully, I will land 2 or 3 listings each month - my average.

But hard core, intense lead generating via phone - to warm leads around a listing or a listing just sold - does this really work these days? Will any appointments gotten be qualified, or just weak, casually-interested leads who just want to talk to a salesperson because they are lonely?

Indeed, those in our office participating in the Keller Williams BOLD Program are contacting people, and getting appointments. The conversion ratio - the jury is still out on that one!

But perhaps it's all a numbers game. A bit like hockey. You take enough shots on goal - you eventually land a few.

So . . . what say you? We all need to expand our business. Will heavy, telephone-based lead generation do the trick? Or, is there something else that might work better.

Please, share your experience with us! There are a lot of nearly-starving sales consultants dying to know!

DEAN & DEAN'S TEAM CHICAGO

Hey, folks! Boooooooo . . . and Happy Halloween!

It's still not to late to enjoy Halloween in Chicago. From our Team Member Sue Moss, here's a rundown on what's going on in the City of Chicago today.

Scary, boys and girls!

Dance with the Dead in the West Loop neighborhood at Bon V (1100 W. Randolph Street). It's a creepy fun house with clowns, a spider farm and more. Click here for more details.

Haunting in the Square takes place in an outdoor courtyard in the West Town neighborhood at Firehouse Square (459 N. Wolcott Avenue). Plenty of ghost stories will be told along with a costume contest, pumpkin carving and more. Click here for the Haunting Friday and Saturday schedule.

X-ecutioner's Ball VIII in the River North neighborhood at Excalibur (632 N. Dearborn Street) will be awarding $1,000 - largest individual cash prize - for best costume as well as other prizes. Click here to learn more.

North Halsted Street Halloween Parade begins 6:00 p.m. on Saturday evening at Halsted Street and Belmont Avenue. You must register at Spin between 4:00 p.m.-6:00 p.m. if you wish to participate in the costume contest. And, yes, pets are welcome to join in the costume contest as well. Click here for more information.

Wicker Park Halloween Prowl will gather in the East Village/Ukrainian Village neighborhood at Ashland Avenue and Division Street this Saturday at Noon for its sidewalk costume parade. Want to join them? Put on a costume! Click here for further details.

Halloween at Chief O'Neill's is located in the Irving Park/Avondale neighborhood at Chief O'Neill's Pub (3741 N. Elston Avenue). Party outside in the garden or inside by bobbing for apples, pumpkin carving, a costume contest, ghost stories, a sing-along and much more, so click here.

Nightmare on Wells Street . . . Parts I, II, III & IV takes place in the River North neighborhood at Bull & Bear (431 N. Wells Street) with themed drink specials, a costume contest and more. Clicking here you'll learn more.

Lastly, there's the Doggie PUPkin Party in the Irving Park/Avondale neighborhood at Brands Park (3259 N. Elston Avenue) on Saturday from 9:00 a.m. to 12:00 p.m. BEWARE -- there will be a dog-owner lookalike contest - how spooky is that, a pet parade and more, so click here to find out more.

Oh, if you truly want the "FRIGHT" of your life, watch the Bears game!! They're at home Sunday and will be haunting the Cleveland Browns.

Enjoy the weekend . . . and hope you're spending it in Chicago!

Here's a link to Sue's This Weekend in Chicago Blog Archive, via BlogChicagoHomes.com.

DEAN & DEAN'S TEAM CHICAGO