60646 Blog reader and North Edgebrook resident, Dennis Paterka, has asked me to publish on 60646 Blog a few pieces of correspondence that he has submitted regarding the decision that was made a while back to remove the “right-turn only” sign in Niles, where Melvina Ave. intersects Touhy Ave. I am giving Mr. Paterka a discussion platform on 60646 Blog, because (a) his – and his immediate neighbors’ – issue is an Edgebrook quality of life concern from their point of view, and (b) it’s a subject that may have ramifications for neighborhood real estate values, and 60646 Blog is mainly a real estate blog. Please understand though that just because Mr. Paterka is receiving a platform here, does NOT necessarily mean that I agree with everything he writes, says, or opines. It’s merely meant to encourage others to join into a discussion, and exchange viewpoints. While doing so, please remember to keep the debate civilized. Younger audiences might be reading here, as well.

Intersection of Touhy Ave and Melvina Ave in Edgebrook Chicago

Melvina Ave. at Touhy Ave. facing south

Melvina Ave. at Touhy Ave. facing south

Deputy Chief Counsel Lance Jones, IDOT – Room 324, 2300 South Dirksen Parkway, Springfield, IL 62764
September 28, 2009
Address: redacted
Telephone number: redacted
email address: redacted

Dear Mr Jones,

You have been referred to me in the attached letter from Ms. Barbara Brush for further questions concerning the IDOT traffic signals at the location of Melvina and Touhy. This letter states that the traffic signals were installed as a result of a permit issued to Niles. If Niles has the right to request that the traffic signals be installed, conversely I have the right to request that Niles’ permit be revoked and the traffic signals be removed as they have now become a hazard to the residents of the 7100 block of north Melvina in Chicago and the Chicago neighborhood of North Edgebrook for the following reasons:
In July of 2007 Niles eliminated a right turn only lane on Melvina in Niles (picture attached). The result has been an enormous increase in traffic using the residential street of the 7100 block of north Melvina in Chicago and the Chicago residential neighborhood of North Edgebrook as a thoroughfare and arterial route for entering and exiting the Niles commercial/industrial area. The specific hazards created by the traffic signals are as follows:
1) They create an inter-residential neighborhood arterial route the goes past three child populated areas, Wildwood Park, Wildwood grammar school and Saint Mary of the Woods grammar school. It is not safe for the children of North Edgebrook for all this traffic to be allowed to run through the neighborhood and it is just a question of time until some kid gets hit.
2) The significant increase in volume of non residential traffic and the recklessness with which this non residential traffic uses the North Edgebrook neighborhood degrades the safety of residents and property such as parked cars.
3) The degradation of safety because of the number of industrial trucks entering Melvina into Chicago from Niles ignoring the posting of no trucks over 5 tons.
4) The degradation of quality of life for Melvina residents because of noise and auto pollution, litter and vandalism from the above mentioned traffic.
5) The negative effect the above has on property values.
6) The stress from the above combined affects health.
7) The destructive effects the increase traffic load is having on the subterranean infrastructure of North Edgebrook streets. Since Niles eliminated the right turn only lane in 2007 the 7000 block of Tahoma which doglegs from Melvina has suffered two water main breaks and a collapsed manhole cover. This leads me to worry if the same traffic stress could be affecting the gas main crossovers that are underneath the streets of North Edgebrook. These are Chicago residential streets that were built in 1952 to 1952 residential standards at a time when the Niles commercial/industrial area that the traffic signals at Melvina and Touhy now service was still native prairie and the dilapidated ILG park. They were never designed to carry the traffic load of being an arterial route for a Niles commercial/industrial area. From the attached correspondence with Peoples Gas their response is that they don’t do traffic studies to determine this issue. Also attached is correspondence from the Chicago Department of Transportation’s Freedom of Information Officer that states Chicago also has done no traffic studies.
And for whatever its worth, from the quantity of information which I received from both Ms. Brush and Niles under the Freedom of Information Act concerning the installation of the traffic signals at Melvina and Touhy it is dumbfounding that on one hand IDOT had to put an incredible amount of effort into the installation of these traffic signals but on the other hand made no effort whatsoever to inform the residents of the 7100 bock of Melvina that these traffic signals were going to be installed. As well, neither IDOT or Niles was able to present the original permit to install the traffic signals at Melvina and Touhy, as such it is my contention that there is no permit and the traffic signals at Melvina and Touhy are therefore illegal.
Five copies of the letter attached to Niles Mayor Callero have been sent to the Niles Village Hall, two via certified mail, trying to resolve this issue but all have been ignored, as such I would like to have whatever applications are necessary sent to me to have the traffics signals at Melvina and Touhy removed in order to eliminate the hazards listed above. Attached you will find a petition from Melvina residents to have the 7100 block of north Melvina be made a one way street to show that there is community support for my request.

Respectfully,
Dennis Paterka

Mayor Robert Callero, 1000 Civic Center Drive, Niles, IL 60714
May 18, 2009
Address: redacted
Telephone number: redacted
email address: redacted

Dear Mayor Callero,

It has become necessary to bring to your attention the intersection of Melvina and Touhy on the Niles – Chicago border. As you can see from the enclosed picture Niles eliminated a right turn only lane in July 2007 that had been in place on Melvina in Niles for ten years. The removal of this right turn only lane has caused this intersection to become a hazard to residents of Melvina in Chicago and the neighborhood of North Edgebrook for the following reasons:
1) The significant increase in volume of non residential traffic that is now entering Melvina in Chicago from Niles and the recklessness of this non residential traffic degrades the safety of residents and in particular children.
2) The degradation of safety because of the number of industrial trucks entering Melvina in Chicago from Niles which is posted for no trucks over 5 tons.
3) The degradation of quality of life because of noise and auto pollution and litter from the above mentioned traffic.
4) The negative effect the above has on property values.
It is just a question of time until some child gets hit by this traffic! How is it humanly possible for Niles, Where People Count, to ignore the lives and safety of children?
Please save yourself the trouble of forwarding this letter to Scott Jochim and George Van Geem for a response. I have already heard them espouse ordinances, viability and the Manual for Uniform Traffic Control Devices. The stop light at this intersection was installed at the request of Niles and required a variance because of its proximity the stop light at Mobile and Touhy and as such Niles should take responsibility for any hazard that this stop light incurs. The rules were bent to have it installed and this intersection created and as such should continue to require variances to prevent this intersection from becoming more of a hazard than it has already become with the removal of the right turn only lane.
Of course it would be unreasonable to remove the stop light at Melvina and Touhy but considering the amount of money Niles makes in sales and property taxes from Target/CostCo/YMCA and the adjacent industrial area it would not be unreasonable for Niles to take responsibility for the safety of this intersection and all those which it negatively effects because the existence of this intersection was made at Niles’ request.
As such I would like to ask Niles to put back the right turn only with a safety island as enclosed example pictures show so that this intersection will stop being a hazard to Melvina in Chicago and North Edgebrook residents and children.
Your experience I this issue will be greatly appreciated.

Respectfully,
Dennis Paterka

Governor Quinn, 100 W. Randolph Street, Suite 16-100, Chicago, IL 60601
October 10, 2009
Address: redacted
Telephone number: redacted
email address: redacted

Dear Governor Quinn,
While an IDOT traffic signal may seem a trivial thing to have to bring to a governor’s attention, from the attached letter from IDOT’s Freedom of Information Officer Ms Barbara Brush it is stated that IDOT has the authority to install a traffic signal without ordinance. As such the only elected authority to which IDOT answers to is the governors office and therefore my only recourse against the hazard of the IDOT traffic signal at Melvina and Touhy on the Chicago Niles border is to bring my complaint to the governors office.
The extent of the IDOT traffic signal hazard is fully described in the attached letters to IDOT Deputy Chief Counsel Lance Jones and Niles Mayor Robert Callero. Without a watchdog neither IDOT or Niles has any incentive or concern to reverse/improve the hazard of the Melvina and Touhy traffic signal. Can the governors office help me improve this hazard?

Respectfully,
Dennis Paterka

To: Alderman Doherty

THIS IS THE ISSUE: MELVINA HAS BECOME A TOILET FOR NILES’ TRAFFIC

1) TRUCKS – Melvina has become established as a truck route for the Niles industrial area. Industrial trucks of all shapes and sizes up to semis routinely use Melvina for a shortcut. Melvina is posted for no trucks over 5 tons.

2) Safety – the less traffic on Melvina = more safety for Melvina residents.

3) Property Values – the value of a house on a thoroughfare for a Niles’ Retail/YMCA/Industrial Complex vs. the value of a house on a Chicago one way street.

4) Quality of Life – less traffic NOISE POLLUTION, less auto pollution, less worry about parking resident’s cars on the street, less danger about pulling out of driveways because of speeding vehicles, less litter thrown from vehicles and better safety for children.

5) Traffic has increased OVER TEN TIMES on the residential street of 7100 north Melvina since being repaved and the elimination of the right turn only lane by on Melvina in Niles. Quit hiding in Oriole Park and hold a community meeting and find out for yourself!

6) The stop signs that were petitioned for by Melvina & Tahoma residents and suggested by CDOT were never installed at Melvina, Estes and Tahoma making them even more critical.

7) Damage to subterranean infrastructure, gas, water and sewer mains.

8`) Since the 7100 block of Nagle and the 6400 block of Algonquin which are both in the Edgebrook triangle have been made one-way, under what standard have these streets been made one-way and why isn’t that same standard being used for Melvina which has a worse traffic problem than either of these streets because of the stoplight at Melvina and Touhy, or is a double standard being used?

9) Streams of traffic use Melvina in Chicago between 4-7 pm weekdays and all afternoon on weekends.

And when you do nothing and in the process of doing nothing allow a Chicago residential street to become a thoroughfare and truck route for a Niles’ Industrial/Retail/YMCA complex thereby jeopardizing the safety of Chicagoans, whom are you representing, Niles or Chicago?

My apologies for being somewhat tardy with Q1 2010 figures for Edgebrook, Sauganash, and South Edgebrook/Gladstone Park. Business has been picking up this spring/early summer, and I’ve fallen behind with writing, a bit. But a busy real estate market is good news for everyone, especially after an extended series of months with bad news. To be sure, we’re not out of the woods yet, in fact some experts opine that it could take years before we could see a healthy real estate market again. But all real estate is local, and market conditions differ from region to region, and from town to town. Hence, I refuse to pay attention to all the generally negative housing news, and rather focus on what’s going on in your real estate markets. And, lo and behold, in this edition of my quarterly 60646 market conditions report, I am about to share some stats with you that mainstream news professionals would consider “good housing news”.

Edgebrook Real Estate Market Conditions Q1 2010 ↓↑

Encouraging stats in Edgebrook: Nine homes closed in the first quarter of 2010 which is almost twice as many as in Q1 2009. Early signs of a comeback? Better news: Neither of the nine closed homes were short sales or bank-owned homes. Edgebrook Q1 2007-2010 Units Sold In Q1 2010, average and median sale prices in Edgebrook declined vs. Q1 2009 (-14.5% and -18.4% respectively) but stayed in the vicinity of Q1 2007 and 2008 figures. So, even though Edgebrook home values have not been immune to the general softness of the market, there is absolutely no need to even waste a breath talking about real estate values in Edgebrook “crashing”. On another positive note, Q1 2010 saw a decline in average market times vs. Q1 2009. On average, it took a little over 4 months to sell a home in Edgebrook vs. 8 months in Q1 2009. Edgebrook Q1 2007-2010 Sale Prices There was no significant change in sale-to-list-price ratio in Q1 2010 vs. Q1 figures of recent years past, even though the green line below seems to indicate a big drop from Q1 2009 to Q1 2010. This ratio represents the percentage home sellers are willing to sell their homes for below their asking prices. For the past three years, this ratio has been almost 95% in the first quarter. It’s also testimony to the fact that Edgebrook is not a typical distressed property market. Edgebrook Q1 2007-2010 Sale-to-List-Price Ratio With 55 homes currently for sale in Edgebrook, the MSI-Index (Months Supply of Inventory) stands at 18.3 months which means that if no other homes came on the market for sale, it would take 18.3 months to sell off the existing inventory of homes in Edgebrook.

Sauganash Real Estate Market Conditions Q1 2010 ↓↑

No dramatic developments in Q1 2010 in Sauganash. 2010 kicked off with 9 closed homes, one of which was an estate sale, and another one a short sale. This puts Q1 2010 on par with Q1 2009, but quite a long way from the 20 homes sold in the first quarter of 2007. Sauganash Q1 2007-2010 Units Sold I don’t want to jinx myself by calling it a recovery, but let us collectively acknowledge the fact that median home values in Sauganash in Q1 2010 increased by 25% over Q1 2009. Average home values rose by 17.3%. This is bloody GOOD NEWS! So what’s with the 254 days average market time? Well, there was one home that finally closed after being on the market for 681 days, and two other homes that closed after 461 and 466 days on the market. With only nine sold homes, relatively long market times on a third of the sold inventory, naturally leave a scuff mark on the stat sheet. But hey, values are up, so I’m calling the glass half-full. Sauganash Q1 2007-2010 Sale Prices The sale-to-list-price ratio in Sauganash improved a tiny bit in Q1 2010 vs Q1 2009, but is still 3.7% below Q1 2008. It basically means that home sellers in Sauganash were willing to part with their homes for 9.3% below their asking prices, on average. In Q1 2008, they were only negotiable up to 5.6%, on average. Sauganash Q1 2007-2010 Sale-to-List-Price Ratio With 50 homes currently for sale in Sauganash, the absorption rate measures 16.7 months. For the record, there were two more sales in Q1 2010 in Sauganash: A townhouse that closed for $515,000 and a 2-flat that changed ownership for $370,000.

South Edgebrook/Gladstone Park Real Estate Market Conditions Q1 2010 ↓↑

South Edgebrook and North Gladstone Park never cease to amaze me: 14 closed homes in Q1 2010. Versus 3 sold homes in Q1 2009. You do the math. Granted, three of the 14 sold homes were estate sales and two of them were bank-owned properties. But still… Impressive! SEdgebrook-GladstonePk Q1 2007-2010 Units Sold More good news: The median home value in Q1 2010 beat the one in Q1 2009 by 13.4%. The average home value though, lost by 3.7%. The average market time rose to 157 days from 105 days in Q1 2009 which was mainly due to a property in the Edgebrook Glen subdivision that had been for sale on the market for a cumulative 894 days before it closed. Excluding that property, the average market time would have been 100 days. SEdgebrook-GladstonePk Q1 2007-2010 Sale Prices And the good news for South Edgebrook and Gladstone Park continues: The sale-to-list-price ratio in Q1 2010 edged up to 95.7% from 94.9% in Q1 2009. Not a huge jump, but every little bit helps. SEdgebrook-GladstonePk Q1 2007-2010 Sale-to-List-Price Ratio With 47 homes currently for sale in South Edgebrook / Gladstone Park, the MSI-Index (Months Supply of Inventory) stands at 10.1 months which means that if no other homes came on the market for sale, it would take 10.1 months to sell off the existing inventory of homes in South Edgebrook / Gladstone Park. Aside from the above reported sales of single family homes, in South Edgebrook / Gladstone Park, there were three 2-flats that sold, ranging from $210,000 to $380,000 and one condo that closed for $130,000. There are currently 14 multi-unit buildings and 9 condos actively for sale in this neighborhood.

One of my all-time favorite contemporary jazz artists, South African singer, songwriter, and guitarist, Jonathan Butler, wrote this ballad as a tribute to his mother. He called it “Song for Elizabeth”. And today, I’m dedicating it to all the mothers in the world, including my mom who passed away a year and three weeks ago.

Here is a version of this tune, performed live:

My wife and I actually met Jonathan after one of his concerts in Michigan City, Indiana last year, and were blown away by what a humble and gentle human being he is.

Like most other technologically highly advanced real estate firms, RE/MAX has realized for quite some time that the future of real estate search plays a very big role in mobile devices. Consumers drive around in a particular neighborhood, and want to have instant information about properties that are for sale in that neighborhood. To that end, RE/MAX has recently enhanced their already fantastic search site to make it mobile-friendly. Not just iPhone-friendly, but any smartphone-friendly.

Thus far, you may have gone to azadeh.biz website for your real estate searches. I am now proudly offering m.azadeh.biz for your mobile device. Here’s what you get when you navigate to m.azadeh.biz (screenshots off of my own BlackBerry):

And searching for homes in zip code 60646 for example, yields this result:

Happy searching.

I completely forgot that last summer, I had shot a brief video on my smartphone, as I was out with my family on a bike ride along the North Branch Trail. It’s a fabulous and healthy activity, and on weekends, the trail accommodates a ton of joggers, bicycle-riders, and outdoor-lovers in general. If you’re new to the area, or have never visited the trail before, do so on a weekend. You are guaranteed to enjoy this experience.

The innocent-looking title of this post is loaded with a whole host of issues related to the sale of distressed properties, and I’m about to briefly explain the directives that the Obama Administration has been sending down the pike, with regard to short sales. Please be advised though that every home owner’s situation is different, therefore, if you are contemplating a short sale of your Edgebrook, Sauganash, or Gladstone Park residence, I would have to have an initial in-depth one-on-one conversation with you to discuss how these changes might apply to your specific situation. Also, you are definitely going to need an attorney, as I am not authorized to provide you with any kind of legal advice.

Home Affordable Modification Program (HAMP)

HAMP has been the Obama Administration’s initiative to help struggling homeowners get relief and avoid foreclosure on their homes. This program aims to help eligible homeowners modify their mortgages. Widely criticized for the program’s underwhelming results, yesterday, the Administration broadened the scope of HAMP, by including unemployed homeowners in the program, and by offering further incentives to lenders and loan servicers.
Aside from that, certain banks have also pledged to reduce mortgage balances for some of their borrowers. Nonetheless, a very large number of homeowners whose homes are “under water”, may not be eligible for a loan modification under HAMP guidelines. In that case, homeowners would have to rely on another program called HAFA which is a part of HAMP. I know, it’s confusing, but bear with me here, because you’re going to need a Realtor who understands the ins-and-outs of all these programs…

Home Affordable Foreclosure Alternatives (HAFA)

First introduced on November 30, 2009, as part of HAMP, the HAFA program offers homeowners, their mortgage servicers, and investors an incentive for completing a short sale or deed-in-lieu of foreclosure. HAFA is overseen by the US Treasury Department, and is administered by Fannie Mae. Homeowners who have short sold their homes already, know full well that in a short sale situation, sellers’ lenders do not allow them to walk away from the closing with any net proceeds whatsoever. Under the new HAFA directives, lenders that participate in the program, must agree not to pursue any deficiency judgment against the short selling homeowner. Let me repeat that: Lenders participating in the HAFA program may not pursue any deficiency judgment against their short-selling borrowers. Folks, this is HUGE, because Illinois happens to be a recourse state. Lenders receive a nominal servicing bonus for participating in the program, and – this is new – short sellers may receive up to $1,500 $3,000 in relocation assistance (moving expenses) following the closing (which may classify as taxable income). The best part of HAFA imho is that upon the receipt of an offer from a buyer, participating lenders MUST respond within 10 (ten) days, accepting or denying the short sale request, the latter of which must have a detailed reason. WOW, no more waiting 3-6 months for an answer from the bank, risking that the buyer walks away from the transaction. However, please keep in mind that this program is brand-new, and in fact doesn’t even go in effect until April 5, 2010. Will there be some hiccups in the beginning, as well as some growing pains? Most likely. Chances are that most of the big lenders like BofA, Chase, Wells Fargo, Citi, GMAC etc. will be HAFA participants. But of course, we won’t know for sure until April 5, 2010, as there is no official list of participating lenders yet. One thing seems to be certain though: Lenders have come to realize that short sales are less costly to them than foreclosures, and are finally starting to put systems and resources in place that can timely and efficiently manage short sales.

Beware of Scams

The housing market crisis has generated a number of scams that many homeowners in distress have been falling prey to. Do not let this happen to you! The federal government specifically warns of foreclosure rescue scams and con artists who request upfront fees to “save” your home, or to lower your mortgage.

Next Step

If you are contemplating a short sale of your property, please contact me at your earliest convenience, to discuss a short sale plan of action for your residence. As a Certified Distressed Property Expert (CDPE), there are a lot more details – over and above what I’ve posted here – that I would need to share with you, in person.

Addendum: HAFA Q&As

Ever since this post was published, it is receiving a large number of visitors who have found it, mainly by googling “HAFA participants”. Today, there was another interesting Google key phrase that prompted me to set up a “HAFA Q&A”, below. The search phrase was “Is Fannie Mae a HAFA participant”? Without further ado, I’m getting the Q&A ball rolling, right here. If you have any HAFA-related questions, please don’t be shy, just go ahead and ask them in the comments section below. If I don’t have the answer readily available, I will find it for you.

Q: Is Fannie Mae a HAFA participant?

A: No. At this time, the HAFA guidelines set forth by the Treasury Dept., effective April 5, 2010, exclude GSE’s (Government sponsored enterprises), which Fannie Mae and Freddie Mac are. However, my understanding is that these GSE’s are in the process of developing/releasing their own versions of HAFA rather soon.
Update (6/1/2010): Fannie Mae announces its own HAFA program effective August 1, 2010: Fannie Mae Announces its Own Foreclosure Prevention Plan Under HAFA
Update (6/2/2010): Freddie Mac announces its own HAFA program effective August 1, 2010: Freddie Mac Details HAFA Initiative for Distressed Homeowners

Q: Which banks are HAFA participants?

A: Generally speaking, lenders who participate in the HAFA program, also participate in the HAMP program. The major lenders BofA, Wells Fargo, Chase, GMAC, Citi, and Wachovia are HAFA participants. However, please note that even though these lenders are HAFA participants, they often service loans for other investors who do not participate in the HAFA program. In those instances, your mortgage would not qualify for a HAFA short sale, and would have to be processed as a traditional short sale transaction, without all the benefits of a HAFA short sale.

Q: Who is eligible for HAFA?

A: Please see here.

Don’t get me wrong: I love that we have a Metra train station in Edgebrook. But every time the northbound train pulls into the station, it’s easily a 3-minute wait for Devon Ave. car traffic (from train approaching to train leaving the station). A 60646 Blog reader had privately suggested to me a couple of weeks ago that – in the name of efficiency – we ought to discuss moving the station back to where it was before: across from Old Edgebrook, east of Central Ave., on Cook County forest preserve grounds. Sounds good to me. What do you think?

Based on my personal experience, today, I’d like to offer ten tips to individuals/families that are contemplating moving to the neighborhoods of Edgebrook or Sauganash, on the northwest side of our great City of Chicago.

1. Edgebrook and Sauganash are predominantly single-family home neighborhoods. Looking at housing types, Sauganash is a bit more diversified, as one will find townhouses for sale – a housing type that’s completely absent in Edgebrook – as well as condominiums, and to a lesser extent 2-4 unit apartment buildings. The latter two housing types, while occasionally offered for sale, are rarely found in Edgebrook. Alas, rental properties are far and few between. As of this writing, there are two broker-offered rental properties in Edgebrook, and five in Sauganash. When these rental properties do become available, in the majority of cases, they are offered for lease by the owners themselves. Rentals are quite popular, because tenants get an opportunity to experience living in Edgebrook or Sauganash for a while without the commitment of a mortgage. Needless to say, many renters can’t imagine living anywhere else after a while.
2. Edgebrook and Sauganash residents primarily run their shopping errands in the nearby suburbs of Skokie and Niles, as I outlined here, a while ago. Wherever you end up residing in Edgebrook or Sauganash, you are never more than 3 miles away from the main shopping centers along Touhy Ave. in Skokie and Niles.
3. Car insurance is more expensive in zip code 60646 than in many other zip codes in Chicago. Our Allstate agent told us so, but he didn’t say why. And we used to live in Lake View where our car insurance bills were lower. Go figure.
4. If you’re moving to Edgebrook or Sauganash from a congested inner-city neighborhood, you’ll be pleasantly surprised to find that you can actually park in front of your own residence. Worst-case scenario, you park in your own driveway. “Dibs” is somewhat of a foreign concept in Sauganash and Edgebrook.
5. No other neighborhood in the City of Chicago offers the close proximity to nearby forest preserves like Edgebrook and Sauganash do. Check out the Forest Preserve District of Cook County FPDCC website for information about Region 4 resources (pdf-file). With the North Branch Trail System (pdf-file), for example, we’re talking about a paradise for jogging enthusiasts, walking fans, bicycle riders, and generally speaking, outdoor lovers.
6. Golf enthusiasts will be elated to know that in Central Edgebrook and Old Edgebrook, players have a choice of two golf courses. Inside city limits.
7. Close proximity to I-94 (Edens) and I-294 (Tri-State Tollway) is especially good news for those who commute to and from their workplaces in the suburbs, or downtown Chicago. The Edens Expressway is literally enveloped by Sauganash to the east, and Edgebrook to the west. The commute to the Tri-State tollway is about 5-6 miles from Sauganash or Edgebrook. O’Hare airport is located approximately 6-7 miles west. If you work in downtown Chicago, and prefer to commute by train, the Metra Milwaukee District/North Line stops in Edgebrook at the intersection of Devon Ave. and Kinzua Ave., and offers ample parking spaces for cars.
8. There is a vast supply of outstanding public and private schools, not just in Edgebrook and Sauganash, but in zip code 60646 in general. Performance results for public (CPS) schools are annually published by the Chicago Tribune, and I then compile the relevant results for zip code 60646 public schools here on this blog. The latest results can be found here. For further school information, please see this page.
9. Median home prices in Sauganash and Edgebrook are relatively high compared to most other Chicago neighborhoods, but it’s not impossible to find reasonably priced starter homes in these two neighborhoods. There are also distressed properties that are being offered in Edgebrook and Sauganash frequently, at very affordable prices.
10. Contact me! So we can get the ball rolling on finding you your dream home in Edgebrook or Sauganash.

photo credit: peruisay

In Chicago, CPS has declared March 1, 2010 through March 13, 2010 Elementary School ISAT testing weeks. This week, it’s been the main week, next week is scheduled for make-up sessions, in the event children were absent from school this week.

I’ve always wondered why Wildwood School announces a week ahead of time via their weekly bulletins that the school will be in “lockdown mode” during testing weeks, where only individuals with a higher-level security clearance are allowed access to the school’s premises, during school hours. I’m almost certain that they have similar policies in other CPS schools, as well. Now I know why.

“We’re not at all optimistic. There are just too many difficult things that have piled up on us.”
Perry Bigelow, CEO of Aurora-based developer Bigelow Homes, on the housing market.

Chicago homeowners will have to get used to a new reality, where selling a house routinely takes six months or more and home appreciation just barely outpaces inflation.
Alby Gallun, Crain’s Chicago Business.

More Chicago-area homeowners defaulted on their mortgages during the final three months of 2009 than in any other quarter since the housing crisis began in 2006.
Mary Ellen Podmolik – Chicago Tribune staff reporter February 4, 2010 based on year-end figures released by the Woodstock Institute

Let’s sum it up before we even get into the analysis: 2009 was not a good year for the housing market in 60646, Edgebrook, Sauganash, and Gladstone Park. Some of these neighborhoods fared better than the other and then again, all of them fared much better than many other Chicago neighborhoods outside of 60646. The real estate market, as we all know, is cyclical. And, at the bottom of the cycle, the market often doesn’t look pretty. We just put an ugly real estate year behind us, and we may not be out of the woods yet, as two major factors that put pressure on the housing market are still wreaking havoc on our economy: A depressed labor market with relatively high unemployment, and the subsequent rise of the distressed property pool. Meaning, tons of people who own homes are losing their jobs. Therefore, they can’t pay their mortgages any longer. As a result, we see more short sales and foreclosures. That in turn, puts pressure on home values. If you recall, the first wave of distressed properties starting roughly in mid 2006, was mainly due to sub-prime mortgages. That’s pretty much behind us now. Going forward, we have entered the territory of resetting Alt-A and Option ARM (toxic!) mortgages. We’re talking about massive amounts of loans that are going to default, all the way through 2012. This is no joke, ladies and gentlemen, we’re going to come out of this, bruised and battered.

BUT, it’s also important to see the signs that represent the light at the end of the tunnel. Take for instance the mortgage interest rate: It’s still relatively low, hovering around the 5% mark for 30-year fixed-rate products. Or, government initiatives that incentivize first-time home buyers, and more recently, existing homeowners, to purchase a home by offering a tax credit. The relative “flooding” of the market with bank-owned foreclosure properties (REOs) – while in and of itself a bad thing because of eroding home values – has suddenly enabled many first-time buyers to buy a home now, for the downpayment of which they otherwise may have had to save for several additional years. The distressed inventory is not staying vacant for long. It’s being re-distributed: Mostly to investors and first-time buyers (the latter group often losing out to the former, in bidding wars). The deck is being re-shuffled, if you will. So, among all the bad news, we still find some good news. And these have just been some of my observations in the field. Let’s get down to the nitty-gritty…

Edgebrook Real Estate Market Conditions Q4 2009 and Full Year Stats ↓↑

At the end of the first quarter of 2009, I had expressed the hope that the shortfall in home sales in Edgebrook would be made up during the rest of 2009. Alas, my hopes did not materialize, and Edgebrook ended the year with a total sale of 58 single family homes. This represents a decline of 26% vs. 2008 and a shortfall of 43% vs. 2007. However, in the fourth quarter of 2009, we had 16 sales vs. 14 in Q4 2008. Not sure that I want to call this a turnaround of the market yet, but it’s nice to see the bleeding stop for a little bit. Edgebrook Q4 2006-2009 Units Sold Edgebrook 2006-2009 Units Sold Bad news: In Q4 2009, home values in Edgebrook eroded further. The median sale price of a home in Edgebrook fell to $373,500 which was almost 8% lower than in Q4 2008. Undoubtedly, out of 16 sales, the closing of four bank-owned foreclosure properties and two short sales had something to do with this development. Ordinarily, these non-arms length transactions should not factor in the equation, but look, when 27.5% of the total market value in Q4 2009 ($5.9MM) are distressed home sales, we can no longer pretend that the distressed portion of the local market operates in a vacuum. On an annual basis, the median sale price was 7.8% below 2008 and 3.6% below 2007. Good news: Average market times in Edgebrook fell from 110 days in Q4 2008 to 80 days in Q4 2009. For the whole year, 2009 market times were roughly equal to 2008 figures: On average, it took a good five months to sell a home in Edgebrook, in 2009. Edgebrook Q4 2006-2009 Sale Prices Edgebrook 2006-2009 Sale Prices Another sign of hope on the horizon: In Q4 2009, the sale-price-to-list-price ratio increased to 95.4% which means that on average, Edgebrook home sellers were willing to part with their properties for only about 4.5% below their asking prices. Given the fact that 6 of the 16 sellers were banks, this figure is not surprising, as banks are not interested in “non-performing assets” and had therefore offered these homes for down-to-the-bone asking prices already. Throughout the year, this ratio fell to 92.6% which is a little more than a percent vs. previous year. Edgebrook Q4 2006-2009 Sale-List Prices Edgebrook 2006-2009 Sale-List Prices With 45 homes currently for sale in Edgebrook, the MSI-Index (Months Supply of Inventory) stands at 8.4 months which means that if no other homes came on the market for sale, it would take 8.4 months to sell off the existing inventory of homes for sale.

Sauganash Real Estate Market Conditions Q4 2009 and Full Year Stats ↓↑

The Sauganash real estate market made a big comeback in Q4 2009 to slightly edge ahead of 2008 figures. The 22 homes sold in Q4 2009 were exactly double the number of sold units in Q4 2008! It was a successful “Hail Mary” pass of sorts that was responsible for a total sale of 57 homes in 2009 vs. 56 in 2008. Gotta love a good comeback. We probably owe a big thank you to the first-time home buyer tax credit for that one when everybody was rushing to close their home purchase by the end of November 2009. Sauganash Q4 2006-2009 Units Sold Sauganash 2006-2009 Units Sold Just like in Edgebrook, home values in Sauganash continued to erode in 2009. While the median home price in Sauganash in Q4 2009 managed to beat out the one in Q4 2008 by 5.2%, on an annual basis, the median home value in Sauganash lost 19.2% in 2009 vs. 2008. There were seven foreclosure sales and two short sales in Sauganash in 2009. However, removing these 9 transactions from the analysis only slightly raises the median home value to $412,500 which is still 16.8% below 2008 results. Average market times in Sauganash improved in Q4 2009 to 182 days vs. 191 in Q4 2008. For the entire year, it still took an average of 152 days to sell a home in Sauganash vs. 191 days in 2008. Sauganash Q4 2006-2009 Sale Prices Sauganash 2006-2009 Sale Prices A very pleasant surprise was to see the average sale-to-list-price ratio climb to 93.4% in Q4 2009. This has been the highest SLP ratio in the fourth quarter of the past four years. Again, distressed inventories were already discounted, so no surprise there. But if I remove the nine distressed transactions from the analysis, I arrive at a ratio of 92.6% for the year which is still remarkable. It means that Sauganash home sellers are once again starting to become a bit less negotiable, in terms of price. Sauganash Q4 2006-2009 Sale-List Prices Sauganash 2006-2009 Sale-List Prices If no other homes came on the market for sale in Sauganash, it would take 7 months to sell all the existing inventory of 51 homes that are for sale.

South Edgebrook/Gladstone Park Real Estate Market Conditions Q4 2009 and Full Year Stats ↓↑

I have saved the best for last: South Edgebrook and North Gladstone Park. Home sales in these two sub-neighborhoods tied the Q4 results of 2008 with 13 sold homes, but for the entire year of 2009, unit sales increased by 16%. In fact, with 52 sold homes in 2009, SEGP had the second-best annual sales result within the past four years, only behind the 61 units sold in 2007. Are things starting to look up in South Edgebrook and North Gladstone Park? SEGP Q4 2006-2009 Units Sold SEGP 2006-2009 Units Sold Even though SEGP median home values declined by almost 12% vs. 2008, in Q4 2009 they handily beat the Q4 2008 results by nearly 13%. Moreover, average market times dramatically declined in SEGP. In Q4 2009, on average, it took 67 days less than in Q4 2008 to sell a home. And while it still took almost 5 months on average to sell a home in SEGP in 2009, this figure was 40 days less than in 2008. SEGP Q4 2006-2009 Sale Prices SEGP 2006-2009 Sale Prices Not unlike Sauganash, South Edgebrook and North Gladstone Park posted remarkable sale-to-list-price ratios, both quarterly, as well as annually. While the SLP ratio in Q4 2009 edged out the one in Q4 2008 by 0.7%, in 2009, that figure increased by 0.3% over 2008. Could this perhaps be the sign of a real estate market that has finally bottomed out? I’m curious to read your thoughts on this subject. SEGP Q4 2006-2009 Sale-List Prices SEGP 2006-2009 Sale-List Prices 39 single family homes are currently for sale in South Edgebrook and Gladstone Park, hence the absorption rate is pushed to 9 months. Please note that in all sub-neighborhoods of zip code 60646, the current MSI-Indices are in single digit territory. This is a good thing!