It shows once again just how important the home-selling business is to the health of our nation’s economy.

SpendingPulse, a division of MasterCard Advisors that tracks sales paid for by credit card, checks and cash, came out with some depressing numbers regarding holiday shopping. According to preliminary figures, total retail sales during the holiday shopping season fell between 5.5 percent and 8 percent from a year earlier, according to the tracking service.

Not all of this can be blamed on the economy. Terrible snowstorms and bitterly cold weather throughout much of the country kept many shoppers away from the stores. I know I didn’t feel like doing too much shopping on those below-zero days in Chicago.

Still, if the economy were better, and if housing sales weren’t so dismal, you can bet that consumers would have spent more when checking items off their holiday wish lists.  Whenever I read about grim sales numbers, it provides me with one more unneeded reminder of why it’s crucial for the federal government to do something to help free up mortgage credit. Buyers may want to take advantage of the great housing prices in their markets. But how can they if mortgage lenders are making it so difficult to qualify for credit?

I recommend to my buyers that they explore the possibility of FHA loans. These loans are becoming the go-to source of mortgage financing for a growing number of buyers. They come with great interest rates and require lower down payments. They’re backed, too, by the federal government.

No one wants to go back to the days of the housing boom, when mortgage lenders gave financing to everyone, no matter how dismal their personal financial situations may have been. But we can’t go too far in the other direction, either, making it nearly impossible for the majority of residents to qualify for home loans.

There has to be a happy medium out there. And if the government doesn’t do something to help us get to it, we can all expect to read about more terrible holiday shopping seasons in the years to come.

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There is some good news, though: This is changing. Yes, it’s changing slowly, but it’s still changing, nonetheless.

In many of the neighborhoods where I help residents buy and sell homes, segregation is already less of an issue than it is in other city communities. For instance, look at the neighborhood of Lincoln Square, one of the trendiest communities in the city. According to the Chicago Tribune, the neighborhood has a diverse mix of races, with 66.9 percent of the population here white and 26.5 percent Spanish. An additional 13.5 percent is Asian, with 3.3 percent African-American.

In Wicker Park, 58.2 percent of residents are white, while 46.9 percent are Hispanic and 9.9 percent are African-American. And in Bucktown, 65.1 percent of the population is Hispanic and 48.4 percent white.

Of course, segregation remains a serious issue throughout most of the city, especially so between white homeowners and African-American homeowners. You just don’t see too many neighborhoods – with the exception of, perhaps, the Beverly and Morgan Park neighborhoods on the city’s South Side – where there is a fairly equal population of white and African-American homeowners.

Hopefully, though, the gradual change we’ve seen throughout the city will only intensify. There was a lot of positive talk regarding race relations during incoming president Barack Obama’s historic campaign this year. Let’s hope that all that wasn’t just talk. Let’s hope that true diversity finally does come to Chicago’s neighborhoods.

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For me, the Chicago Tribune’s Chicago Homes section is at its best when it is highlighting the diverse neighborhoods of the city.

This Saturday, the Tribune did just that when it ran a profile of Chicago’s Lincoln Square neighborhood, one of those unique city communities where property values are not just holding steady, they are increasing. You can read the story here.

The Tribune story rightly points out that as Lincoln Square grew into the busy and sought-after neighborhood that it is today, it did not lose touch with its longtime identity. As the story says, for most of its existence Lincoln Square has been known as the home to a thriving German immigrant population. That Germanic flavor still exists here: Just try any of the restaurants in Lincoln Square that serve delicious bratwurst and sauerkraut.

But Lincoln Square is also home to a diverse array of independent shops, everything from small coffee houses to non-chain bookstores and a movie theater. It also houses the Sulzer Regional Library, one of only two regional branches in the Chicago Public Library system.

It’s little surprise that the neighborhood has become one of the trendiest in the city. The median sales price of homes in Lincoln Square stands at $335,750. That’s higher than the overall median sales price of Chicago homes. It’s also a median sales price that, unlike those in most parts of the city today, is still rising.

Of course, the neighborhood isn’t perfect. The Chicago public schools located here record standardized test scores lower than the city’s average. It can also be a struggle, as it is with many North Side neighborhoods, to find parking. But on the whole, this Chicago neighborhood boasts many more pluses than it does negatives.

If you’re interested in living in a slice of the city where homes are still appreciating and there is plenty to see and do, you owe it to yourself to explore Lincoln Square.

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The answer might be found in the National Association of REALTORS® Remodeling Cost vs. Value Report. The report, put out every year, highlights those home improvements that return the highest percentage of their cost. It also points out those that return the lowest.

For the second year in a row, the home improvements that provided the highest return upon resale were those that focused on a home’s exterior. Upscale fiber cement siding returned the highest percentage of costs, with home sellers recouping 86.7 percent of their costs when selling. Wood decks came in next, bringing a return of 81.8 percent. Coming up next were mid-range vinyl siding at 80.7 percent and upscale foam-backed vinyl siding at 80.4 percent.

Those remodeling projects that returned the least amount of value were home office remodeling projects, which returned 54.4 percent of the money homeowners put into them; sunroom additions, which returned 56.6 percent; and back-up power generators, which returned 57.1 percent.

Bathroom remodels have traditionally returned a high percentage of costs. That didn’t change this year, though the percent of costs that these remodeling projects brought back did dip a bit. A mid-range bathroom remodel can be expected to return 74.4 percent of project costs to a seller on resale.

All of this information is good to know. However, I don’t recommend that homeowners let expected returns be the sole factor in their remodeling decisions. Remember, you have to live in your home until you sell it. If you plan on living in your residence for several years, it makes sense to renovate it so that it fits the life that you and your family lead.

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Remember the heady days when Donald Trump first announced, and then broke ground on, Trump International Hotel & Tower? He was confident that he’d sell out his project in record time.

Trump isn’t so confident today, as his development still hasn’t been finished and many of his condos sit unsold. And he’s hardly alone among local developers.

A recent story in Crain’s Chicago Business highlights just how far the fortunes of many Chicago condo developers have fallen. According to the story, a growing number of high-rise developers are either seeking or have received extensions on construction loans that are soon to be due. At the same time, developers are struggling to sell their empty condos, with many facing the prospect of loan defaults. The Crain’s story says that foreclosure may be inevitable for the weakest of the projects.

Of course, if you happen to be struggling to sell a condo of your own, you know exactly how the high-rise developers quoted in the Crain’s story feel. It’s difficult today to sell any home. Selling a condo is even more challenging.

The problem is that there are so many new condos available. It’s hard for someone selling a condo that’s even two or three years old to compete with all the brand-new spaces in newer buildings that are also on the market.

If you’re struggling to sell your condo, though, don’t panic. There are steps you can take to move that unit.

The most important of these is to price your unit properly. Work with a REALTOR® who can tell you what comparable units in the same neighborhood have recently closed for. This will give you a good idea of what the market will bear. Remember, your condo is only worth what buyers are willing to pay for it. Price it too high, and you’ll struggle to notch any solid offers.

Secondly, to sell your residence quickly and at a fair price, make sure you’ve updated your condo unit. Buyers like bright, open kitchens and large bathrooms. They’re looking for hardwood floors and higher-end appliances. If you can add at least some of these features, you’ll give yourself an advantage.

Finally, if you don’t have to sell, you might consider waiting out this bad market. The competition for condo sales is tough right now. It’s hard to stand out. Your best move may be to wait until the market turns around and the excess condo inventory starts to disappear.

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That has changed. Even today, as the housing market suffers through a terrible slump, home-selling has become a year-round business. People still buy and sell homes in December, January and February in Chicago. They still tour condos and single-family homes during snowstorms, bouts of below-zero wind chills and sessions of freezing rain.

This means that sellers have to always be prepared to show their homes. You never know if your ideal buyer will show up in the dead of winter.

Of course, showing a home or condominium in winter – especially when there is snow on the ground – requires some special steps.

First – and though this sounds obvious, many sellers don’t take this advice – make sure if you are selling a single-family home to shovel the walk in front of your house, your driveway and any walks leading to any doors. Don’t forget the sidewalk leading to your backyard. You never know when a potential buyer will want to stroll down it. If these possible buyers slip on the ice or have to tromp through a foot of snow, they’re not going to associate your house with many positive thoughts.

It may sound silly that a snow-covered driveway can scuttle a home sale, but remember, the decision to buy or pass on a residence is an emotional one. Anything that leaves a negative impression in a buyer’s mind can hurt your chances of a sale. Remember, too, that the way you take care of your home’s outside gives buyers a clue as to how you’ve cared for its insides, too. If you don’t shovel, buyers think, what else do you skimp on?

Inside the home, make sure you clear away the piles of boots, hats and gloves that tend to accumulate just inside a home’s doorway in the winter. And take care to keep floors clean and free of any snow, salt or slush tracked in by kids or spouses.

On the condo side, remember that as an association you want to make sure that the public sidewalks in front of your building remain cleared of snow. Also, if you live in the condo building, make sure that all mail and newspapers sent to residents who’ve left Chicago for the winter is picked up and put out of sight. Remember, cluttered, messy common areas and exteriors can lead to slow sales or sales that fetch lower prices. That will eventually impact everyone in the building because every unit owner will sell eventually.

It can be tough to showcase a home or condo to its fullest when your carefully planned landscaping is covered by snow or the steps leading to your building are sprinkled liberally with crunchy salt. But by keeping the exterior of a condo building or single-family home neat and tidy, and their interiors clean, you may notch a surprising winter sale this year.

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It’s not always easy to tell, though, when you’re ready to make the jump from renting to buying your own home. When the housing market is struggling, as it is now both nationally and in Chicago, it’s an even more difficult decision.

But there are some key factors that you can consider to make the decision an easier one.

First, take a look at your credit score, a numerical figure that acts as a summary of how you’ve paid your bills and handled revolving debt. Kept by the three credit bureaus, Experian, Equifax and TransUnion, a credit score is the biggest clue mortgage lenders have on whether you’ll pay your mortgage bill on time. A credit score of 700 or higher is considered excellent, and can help you qualify for the best interest rates and mortgage loan programs.

If your credit score is low, though, you might want to wait before purchasing a home. For one thing, a low credit score means you’ve struggled to pay your bills on time. You don’t want to miss any mortgage payments. Maybe it’s best to wait until you’re more financially responsible before purchasing a home. Also, a low credit score will keep you from the better loan programs. Again, it might be wiser to wait until you can rebuild your poor credit.

Next, consider your income and debt levels. If you have a high income and a low amount of debt, you’re in good financial shape to buy a house. If, on the other hand, you’re saddled with large amounts of debt, you might think twice before taking on the additional burden of a mortgage loan.

Another important factor to consider: Can you scrape up enough money for a down payment? There once was a time when you could qualify for a mortgage loan with as little as 3 percent down. Those days are largely gone. Many lenders are requiring down payments as high as 20 percent. It’s not easy coming up with that kind of money with the high median sales price of homes in Chicago’s top neighborhoods. You might consider talking with a qualified mortgage lender about special programs. You may qualify for first-time buyer programs that allow buyers to obtain mortgage loans with lower down payments.

There is hope, though, if you are struggling to come up with a down payment. The Department of Housing and Urban Development’s FHA loans can require a down payment of as little as 3 percent. Talk to your mortgage loan officer about this program and the opportunities you may have to take out an FHA loan.

Finally, there’s one question that many forget: Are you ready to settle down and make one neighborhood your home for several years? When you rent, you’re largely transient. It’s easier to hop from neighborhood to neighborhood. When you buy, though, you’re making a commitment, whether you purchase a condo in Lincoln Park or a two-flat in Ravenswood. You are choosing a neighborhood to call home, possibly for several years.

Making the decision to buy your first home is never an easy one. But if you ask yourself the right questions, and if you make sure your finances are sound, you can make this decision with confidence, no matter which way you go.

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Chicago, of course, is getting closer than ever to being the host of the summer Olympic Games eight years from now. As a REALTOR®, this has caused me to wonder: If our city does get the games, will it have any impact on the local housing market?

The answer I’ve come up with, and the one supported by everything I’ve read? Maybe.

I know that’s not the most satisfying answer. But here’s the evidence supporting it:

First, Jones, Lang LaSalle last summer released a report focusing on this issue. Called “Reaching Beyond the Gold: The Impact of the Olympic Games on Real Estate Markets,” the report looks at how the Olympics have benefited recent host cities. The report says that the Olympics often bring with them the improvement of urban infrastructure in host cities. This can have a major impact on long-term housing values in these areas. Consider the new airport that the city of Athens built just east of the city when it hosted the games. The airport has significantly boosted land and property prices in the region.

The impact on the Chicago real estate market, though, is less clear. We’re far from a developing city. Our infrastructure is already in place. But according to Chicago 2016, the official Web site of Chicago’s bid for the 2016 Olympics, hosting the games will provide some significant long-term benefits to the area’s housing market.

The games, if hosted here, will feature a temporary stadium in Washington Park. City officials say this will help revitalize the neighborhood around the park. The Athletes’ Village will add a mixed-use community on the city’s lakefront, which, organizers say, will serve as a catalyst to improving an entire neighborhood on the South Side of the city. The games will also showcase the city neighborhoods in the Loop and its immediate neighboring areas, causing more people to move to these parts of the city, organizers add.

As an added benefit, having the Olympics in Chicago will fast-track important capital projects, say supporters of Chicago’s 2016 bid. If Chicago does get the Olympics, city officials will want to make sure, for instance, that all transportation projects are completed to coincide with the games. Improved transportation can only help boost housing values.

After studying all this evidence, I say, “Bring on the games.” Anything that brings more exposure, both nationally and internationally, to our great city can’t hurt.

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What this means in your world is that compared to 3 weeks ago, interest rates have dropped to a point where the $400,000 property of 12/1/08 is now effectively priced at $356,000 when the new lower monthly payment is calculated. Or to put it another way, with the same monthly payment you’d be making at 12/1/08’s rates, you’d be able to buy a $444,000 place and keep the monthly payment the same as it was at the old higher (but still historically really low) interest rate.

Again, I am not telling you to scrap well-laid plans and to breach leases, etc. but it might make sense to call a/your mortgage person to see where you stand. It might make sense to break your lease (rental rate MULTIPLIED BY months left on your lease = $) if the cost of doing so is offset by the benefit of buying at these interest rates and prices. Thought of another way, if it would cost you $10,000 to break your lease or if you have to sell for $10,000 less than you’d like AND you intend to buy and stay in a place for at least 2 years, the savings on the theoretical $400,000 property may outweigh that cost when one adds up the monthly interest savings AND the very real potential that the $400,000 property will be worth more than $400,000 in 24 months.

I hope this helps and doesn’t confuse or scare anyone. I am not advocating that you do anything that makes you uncomfortable and good deals will still be there in early 2009 but I did want to make sure you at least thought about the situation.

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In today’s slower housing market, your home will not get nearly as many showings as it did just two or three years ago. Even in Chicago’s top neighborhoods, places like Lakeview, Lincoln Square, Bucktown, the Gold Coast and Lincoln Park, the number of potential buyers is down from the years of the housing boom. This means that sellers must always present their residences in the best possible light. There just aren’t as many people interested in buying any home right now. You need to give your residence every chance to shine.

Getting a home ready for a showing involves some fairly simple steps. I know no one enjoys housework. And after several showings, rushing around your home to get it into prime viewing condition can be a pain. But you never know when that right buyer will be touring your home. You want to make sure that your home looks its best when that buyer does show up.

The first step should happen before you even put your home on the market: Remove as much furniture, toys, televisions, knick-knacks and electronics as possible. The more clutter you have, the less attractive and the smaller your residence seems.

Secondly, there should be no personal photos of adults in the house and only limited memorabilia. Also, there should be no photos or memorabilia of your former college, nothing that clearly states your political views, no religious items and nothing that celebrates your sexual orientation. It may sound silly, but a buyer may see your University of Illinois banner and immediately get a negative feeling about your home because she attended Northwestern University. If you have a wedding shrine dedicated to photos of the big day, make sure to remove that, too. Buyers want to envision themselves in your home. It’s hard to do that if all they can see are photos of you and your spouse.

Next, never leave a mess behind before a showing. Make your beds. Wash your dishes. Clean the bathrooms and the kitchen floors. Vacuum the rugs. Again, I know this is a pain, but selling your house is a huge step. Do everything you can to make the sale happen.

Pets are tricky. Buyers don’t appreciate listening to a barking dog in the basement. And the sight of a litter box doesn’t generate happy feelings about a home. Before a showing, take your pets out, and don’t bring them back until the showing is over. Remove all evidence of them, too. Don’t leave chew toys on the couches or bags of dog food in the kitchen corner.

Finally, don’t forget your home’s exterior. Your home’s outside will make the first impression on buyers. You don’t want them to see an overgrown lawn or a front walk that hasn’t been shoveled. Keep everything on the outside neat and tidy. Buyers will then have a positive feeling as they open your front door.

Remember, the housing boom is long over. Gone are the days when even homes in less-than-sparkling condition would attract multiple offers. Take the extra time to prepare your home for every showing. It will pay off in the long run.

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