The numbers from the Illinois Association of REALTORS® tell the story. The sales of existing homes in Chicago rose 11.5 percent in May. A total of 1,537 existing condominiums and single-family homes were sold in the month. In April, only 1,378 of these residences were sold.

At the same time, the median sales price of these homes continued its steady, gradual rise. Condominiums and single-family homes sold in the city in May saw their median sales price go up 2.3 percent to $225,000. In April, the median sales price stood at $220,000.

Of course, this is a slow recovery. Both sales and median prices are still significantly down from last year at this time.

According to the REALTORS® association, May sales in Chicago were down 27.5 percent from the 2,119 homes sold during the same month one year earlier. At the same time, the median sales price in Chicago was down 29.5 percent from the price of $319,000 that sellers fetched a year ago.

The numbers may not be quite as high as we’d like. But the fact that they are trending upwards – no matter how gradually – is good news. This marks the fourth straight month in which both sales and median sales prices have risen for homes sold in Illinois.

It’s good to see some normalcy returning to the Chicago housing market. I, for one, hope to see sales and sale prices continue to their upward movement.

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The plan, then, is to wait as the two-flat appreciates. When it’s time to sell, you’ll make a nice profit that you can use toward your next home.

Does this plan still work? Yes. In fact, according to a story in the Chicago Tribune, the two-flat is attracting a growing number of first-time buyers today.

Two-flats in neighborhoods such as Lincoln Park, Lakeview, Lincoln Square, Ravenswood and other top Chicago communities are more affordable than they’ve been in years. According to the Tribune story, these homes were some of the first lost to foreclosure during the housing slump.

That leaves the prices on today’s two-flats in a range that’s affordable to many first-time buyers. Experts quoted in the Tribune story say that many two-flats today are selling for the same amount that they were moving for in 2000 and 2001.

The story also explains that financing a two-flat is relatively simple for owners who plan to live in the building. These owners can acquire an FHA loan that allows owner-occupants to put less than 5 percent down. The loan also allows owner-occupants to apply potential rental income to their own incomes. This way, owners may quality for a higher loan than they would if they were buying a traditional single-family home or condominium.

Of course, there are some downsides to living in a two-flat. The main one: You may not like being a landlord. It’s not always easy to live with renters. When something in your renter’s unit breaks, you’ll have to get it fixed. You’ll also have to do the background work to make sure you’re renting to occupants who have a history of paying their bills on time.

If you are willing to do this work, though, buying a Chicago two-flat may be the right choice for you. It might serve as your entry into the Chicago housing market.

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According to a feature story on the Politico blog, the proposed new agency would require mortgage lenders to offer consumers loans with simple terms in addition to those with more complex terms. Borrowers would have to opt out of the simple mortgage loan products if they wanted to instead go with the more complicated versions.

The new agency might also place more responsibilities on mortgage brokers. Though nothing is final yet, brokers might have to make sure that their customers can afford the mortgages they write for them. The new consumer agency might even ban certain lending practices such as pre-payment fees, which on some loans are passed on to borrowers who pay off their mortgage loans early.

The consumer protection agency wouldn’t concentrate only on mortgage lending, but would also oversee the way credit card companies charge their customers.

It’s all part of an effort, Pres. Barack Obama said last week, to prevent another financial disaster like the one that pushed the country into the recession we’re still trying to work our way out from.

Is this new agency a good idea? Anything that protects consumers is a positive. But borrowers have to remember one thing: They have to use some common sense, too, when applying for mortgage loans.

First, it’s important for borrowers to only work with reputable mortgage professionals. Despite what you might read in the newspapers, the vast majority of mortgage loan officers, bankers and brokers are honest, hard-working and smart professionals. If you’re looking for a loan officer, check with your REALTOR®. He or she should be able to recommend several.

Secondly, if you feel that a loan officer is trying to talk you into taking out a mortgage product with which you are uncomfortable, walk away. There are many more professional mortgage loan officers out there.

Finally, take an honest look at your financial situation before applying for a mortgage loan. You know how large of a mortgage payment you can make each month. Don’t try to stretch yourself too thin financially to get into a more expensive home.

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If you only saw the headlines this week, you may have missed another positive sign in the housing market.

According to the Census Bureau, the supply of newly-built homes for sale fell to 10.2 months in May, its lowest level in 10 months.

Unfortunately, the New Homes Sales story wasn’t positioned as a positively by the press.  Instead, the most common headline on the data read “New Home Sales Dip 0.6%” with many journalists referring to the figures as “weak” or “disappointing”.

Only, that’s not completely true.

See, one of the nice elements of the monthly New Home Sales report is its footnote section in which the Census Bureau talks about statistical Margin of Error and that section tells us that if the Margin of Error is larger than the measurement itself, the report is useless.

And that’s exactly what happened in May.

New Home Sales were measured to have fallen by 0.6 percent but that data point was dwarfed by its 17.8 percent Margin of Error,  The “headline data”, in other words, was just a guess.

The press reported it anyway.

Nonetheless, as it relates to the economy, falling home inventories are a positive.  Having 10-plus months of homes on the market is still high historically, but a definite improvement over what we saw earlier this year.

So long as low mortgage rates and aggressive pricing persists from builders, we expect even less supply in the months ahead.

The Real Estate Top 400 honors four categories of top-100 residential agents and teams: Individual Agent, Sales Volume; Individual Agent, Transaction Sides; Agent Team, Sales Volume; and Agent Team, Transaction Sides.

For its $131 million in sales for 2008, the Mario Greco Group ranked 26th in sales volume for an agent team. Despite the down economy, in 2008 the group beat its 2007 MLS volume of $112,239,179. The Mario Greco Group also ranked 88th in transaction sides for an agent team, for the 224 buyers or sellers it represented in 2008.

“It’s a nice reward for a really good year in 2008, and also for six years of hard work in this business,” Mr. Greco said of his group being included on the lists sponsored by the Journal. “It’s nice to be recognized by your peers and by a legitimate national publication.”

Mr. Greco’s staff includes 15 additional agents. “Without them, I wouldn’t have achieved what I achieved,” he said. “It’s a testament to them that in the worst market in our lifetime, we still managed to increase our sales volume.”

He credits the team’s success, and that of Rubloff as a firm, to being a reliable brand in tough times. “We didn’t do anything differently in 2008 than we did in previous years, other than concentrate even more on pricing and customer service,” Mr. Greco said. “In any bad market, in any industry, the established brands tend to get stronger.”

At an average of $5 million, sales volumes per agent are higher at Rubloff than at any other Realtor in Chicago.

Tom Horwich, the company’s co-owner, said that Rubloff provides its agents with state-of-the-art business communications and IT support. In April of 2008, Rubloff rolled out a new version of Rubloff.com, and a new luxury-marketing program called Rubloff Residential Elite, which targets affluent buyers and sellers of luxury real estate with both print and Web advertising.

“We don’t want to be the biggest,” said Howard Weinstein, co-owner of Rubloff Residential Properties. “We simply want to be the best.”

Rubloff has been a household name in Chicago real estate since 1930, when it was founded by Arthur Rubloff. Owned by Weinstein and Horwich since 1996, Rubloff Residential Properties is one of Chicago’s most respected real estate firms. Rubloff provides real estate services to a diverse set of communities including the North Shore, Lincoln Park, the Gold Coast, the South Loop, and Michigan’s Harbor Country.

Visit Rubloff’s award-winning Web site at Rubloff. For more information on The Real Estate Top 400, visit The Wall Street Journal Top 400 Agents article.

Article Courtesy of The Wall Street Journal.

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According to the National Association of REALTORS, the number of homes sold in May increased for the third straight month and the national housing supply fell by 5 months.

Furthermore, first-time home buyers are accounting for nearly one-third of the market activity.

But, before we declare a bottom in housing, it’s important that we remember the First Rule of Real Estate:

All Real Estate Is Local

National housing statistics like Existing Home Sales are painted with a very broad brush. They lump disparate locales such as San Francisco and Seattle into one sample set and don’t account for regional differences, let alone neighborhood ones.

Furthermore, getting down to a city-by-city, or even street-by-street basis, we can always find homes that are selling quickly and home that are languishing.  Real estate is highly local and subject to countless influences.

That said, the national data isn’t completely useless.  From the patterns, we can infer that low mortgage rates, ample home supply and available tax credits are providing a quantifiable boost to the broader real estate market.

And based on recent pending sales data, we can expect June and July’s Existing Home Sales figures to be similarly strong to May.

Therefore, if you’re in the market for a new home right now — or plan to be soon — be conscious of home inventory levels in your target neighborhoods.  Fewer homes on the market usually means less ability for buyers to negotiate and that leads to higher sales prices.

Plus, the NAR is reporting buyer activity up 10 percent from last year.

The housing market may not be fully recovered in every housing market just yet, but in studying the data, a lot of the pieces appear to be falling into place.

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A recent story in the New York Times highlights this. The story talks about the many factors that go into spotting a good real estate deal. Yes, a big price reduction looks good. But if the home was overpriced to begin with, that price reduction might still not make a particular residence a good deal.

It’s a good story. And it makes a good point. Buyers can’t just look at one particular factor – whether it be price, location or a home’s amenities – to determine if a house is the right buy for them. They have to look at a combination of factors.

That’s where REALTORS® come in. A good REALTOR® will help buyers consider everything before deciding to purchase a specific house.

In today’s housing market, Chicago buyers are fortunate: They have a lot of inventory from which to choose, in even the top city neighborhoods. This means they can afford to be choosy. They have time to consider all the factors in and surrounding a home before making a decision.

Perhaps a young couple is interested in buying in a fun neighborhood filled with restaurants, bars and theaters. They can choose from many in Chicago: Lincoln Park, Lakeview, Lincoln Square, Ravenswood and Streeterville, to name a few.

Say they find a condo in Lincoln Square that seems perfect. It’s right in the middle of the neighborhood’s busy nightlife district. It’s spacious. And it has some of the latest amenities.

But what if their REALTOR® finds them a similar condo two blocks over that’s priced a bit lower? It may be farther away from the heart of the neighborhood’s restaurant and shopping district, but the lower price may compensate for that longer walk.

Or maybe it doesn’t. Maybe it’s more important for the couple to be located in the middle of all the hustle and bustle of Lincoln Square.

The point is, with the help of their REALTOR®, the couple considered all the pluses and minuses of a particular home before buying.

That’s what buyers should be doing in this market. In even the most popular of Chicago neighborhoods, buyers still have plenty of housing options from which to choose. By looking at all the factors surrounding a particular home, buyers, with the help of their REALTORS®, can find the perfect housing deal for them.

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But one segment of the Chicago housing market will probably recover a bit slower than the rest: the condo market.

Chicago isn’t alone in this. According to a report by the National Association of REALTORS®, condominium and co-op sales were down significantly in April when compared to the same month one year earlier. The sales of existing single-family homes were down, too, but not by nearly as much.

According to the REALTORS® association, resale condo and co-op sales across the nation were down 9.4 percent in April of this year when compared to the same month in 2008.

In Chicago, especially in the downtown city market in high-rise condominiums, the news was just as bad when it came to condo sales: The Chicago Tribune reported that more than half of the new condo developments in downtown Chicago either had sales canceled or failed to make a single sale during the first quarter of 2009.

What does this mean if you own a Chicago condo? For one thing, you need to price your condo correctly if you want to sell it. There is a lot of competition on the market for condos in Lincoln Park, Lincoln Square, Lakeview, Roscoe Village and other top North Side Chicago neighborhoods - which includes a number of newly constructed units that are generally very attractive to buyers.

Secondly, your condo needs to be in top shape. There are plenty of new and nearly new condominium units on the market in Chicago’s top neighborhoods today. Your condo has to be in top condition to compete with these units.

If you’re shopping for a condominium, the sluggish sales are good news. You’ll find an incredible inventory of unsold condominiums from which to choose. Sellers will be willing to negotiate on everything from sales price to closing date. It’s a great time, then, to be buying a condo in Chicago.

Of course, whether you’re buying or selling a condominium, it’s best to work with a skilled REALTOR® who knows your neighborhood. If you’re selling, this REALTOR® will help you set the right price. If you’re buying, a REALTOR® will help you you’re your perfect condo while helping you negotiate a fair deal.

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All of these housing styles have their fans. The Chicago Tribune on Sunday highlighted yet another type of housing with a strong presence in North Side neighborhoods like Lincoln Park and Lakeview, the rowhouse.

You’ve undoubtedly seen these modest-looking homes. They’re attached to each other in a long row, hence the name. In fact, there’s little difference between a rowhouse and a townhouse. Usually, it’s up to the developer or builder to decide between the two names.

But whether you call these housing units rowhouses or townhouses, one thing is certain: Their popularity is growing.

These homes are especially popular among the important first-time home buyer market. There’s a reason for this: Rowhouses are usually more affordable – though not always – then either condos or single-family homes.

Besides their lower price tags, rowhouses come with other benefits. They often feature either little or no yard, for one thing. While this may seem to be a negative for some buyers, for others it’s a blessing. If you don’t enjoy spending your Saturday mowing the lawn or weeding, a rowhouse with a postage-stamp-sized yard might be ideal.

New rowhouses also tend to feature the same modern amenities that buyers can find in larger single-family homes. For instance, many rowhouses today include separate tubs and showers and large master bedrooms.

Rowhouses appeal, too, to “green” buyers. Rowhouses are usually located in the middle of walking neighborhoods. They’re often just steps from public transportation. It’s entirely possible to live in most city rowhouses without having to own a car. That is about as “green” as you can get.

Of course, rowhouses aren’t for all buyers. Some buyers will want more space than a typical rowhouse will give them. Others don’t want to be quite that close to their neighbors.

But for a specific set of buyers, the Chicago rowhouse is the perfect match.

Check out 474 W. Deming (pictured), one of our new listings and an absolutely stunning example of a Chicago rowhome.

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Based on data from May, 11 states accounted for 80% of the country’s foreclosure activity. The remaining 20% was spread across the 39 others. That’s 80/20 almost to the tee. The disparity goes deeper that that, though.

The top three states in RealtyTrac’s list — California, Florida, Nevada — were home to half of May’s foreclosure-related actions.

Clearly, foreclosures are concentrated in certain geographies. But, no matter in which state you live, foreclosures still impact you.  This is because mortgage lenders are often national companies, lending in all 50 states. When home loans go bad — in any state – lenders respond by increasing downpayment requirements and by adding new borrowing hurdles.

If you’ve applied for a mortgage in the last 18 months, you’ve experienced this phenomenon personally.

On the other side, if you’re a home buyer in a foreclosure-heavy state, you’re finding terrific value versus several years ago.  It’s one reason why Existing Home Sales in the West Region are up by 19 percent from last year, for example.

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