Oops? They Did It Again

The Federal Reserve has cut interest rates again. See the NY Times coverage here. As NPR's "All Things Considered" explained on Monday, bad real estate numbers can be good news for Wall Street: this access to quick cash is just what investors were hoping for. Are there more cuts to be expected in the near future? Watch this space. For more on what the cut means for consumers, go here.

I Like the "Starts"

Chicago Real Estate Daily is reporting that a room at the new Trump hotel starts at $325....it goes up to $1425, though I am sure you can add on to that tab pretty easily. This is however actually lower than the starting rate at Trump's two main competitors, the Four Seasons and the Peninsula. Anyone who has tried them all out is welcome to post a comparative review here! We are all ears!

United We Fall?

The "Today's Papers" header at Slate was so cute, and apt, that I had to steal it -- with the addition of a question mark. The point, of course, concerns the nausea-inducing drop in world stock markets as an indication that the global market is more interdependent than perhaps many of us would like: European and Asian investors seem to be unnerved by rumors of an imminent U.S. recession. As "The New York Times" puts it, in a passage "Slate" cites as well: "The angst about the United States belies the popular theory that Europe and Asia are not as dependent on the American economy as they once were." It might be more precise to say that what it belies is the theory, popular or not, that Europe and Asia do not believe themselves to be independent of the U.S. Whether that accurately reflects the facts is another matter, and one that remains to be seen. Of course James Carville's law of politics -- "It's the economy, stupid"-- becomes, when applied to the economy: "It's psychology, stupid!" --But there may still be time for investors to rally and come to their senses, a possibility the Times acknowledges with its follow-up article today: "To Some, the Widening Crisis Seems Driven By Fear, Not Facts."

The Plan

Click here for part two of Jack Guttentag's two-part article on the federal government's plans for dealing with the subprime crisis.

Florida? No Thanks!

Hard as it may seem to believe, some people actually choose to vacation in Chicago in the dead of winter. From ice skating in Millenium Park to browsing the shops on Montrose Avenue in Ravenswood, there is plenty to do in this city of ours without being overrun by those creatures no one wants to see, much less admit to being (i.e. tourists). Go here to post your own tips!

Baroque Chicago?

Check out this NY Times article on the anti-minimalist Richard Dreihaus. The Richard H. Driehaus Museum of Decorative Arts is due to open in the spring in the Nickerson Mansion, quite possibly "the most expensive residence ever built in Chicago." Watch this space for details.

Looking for a NY Landmark?

Former art dealer Lawrence Salander is selling his townhouse, former residence of writer Lillian Helman, pending court approval (Salander declared bankruptcy last year). For a cool $25 million, the place could be yours!

Looking for a Good Investment? Follow the Artists

Business Week is running an interesting feature on the way that artists tend to upgrade neighborhoods -- until they add so much value that they (or at least the struggling ones) price themselves out of a home (e.g. Greenwich Village in New York). The magazine has put together what it calls the top ten places for artists. I'll ruin the suspense and tell you that Chicago is not on it, but the trend holds for our city as well!

Waterview Tower

One of my fav’s of the few new buildings offering hotel amenities along with terrific condos with unstoppable views..

There's always Ikea!

Ikea: it's not just for decorating anymore! Comedian Mark Malkoff has moved into a New Jersey Ikea warehouse while his Manhattan apartment is being fumigated. (His live-in girlfriend will not be accompanying him. Malkoff's comment: "For some reason, she didn't want to live in a store.") Follow Malkoff's progress (?) here.

Chicago: Capital of Straight Talk?

Does anyone have any thoughts as to why President Bush chose Chicago as the place to drop his "What, me worry?" stance and admit that the economy is in trouble? The threat that Bush acknowledged is a "reality" is three-pronged: rising oil prices, the job market, and the home mortgage crisis. For a very informative look at the latter, check out the first part of a two-part series by "The Mortgage Professor," aka Jack Guttentag, over at Inman news.

Tips for Sellers

For those of you trying to sell your home, the news is not all bad. Check out these tips from "Forbes" on marketing an upscale property in downscale times. Number One: make sure the price is right!!

Chicago: A Buyers' Market

"What's not to like?" asks an article in the Sun Times News Group -- at least for buyers, the Chicago real estate market is a friendly place to be:

Buyers in the Chicago area have perfect conditions for looking right now, said Laura Ellis, senior vice president of sales for Baird & Warner. "It's a great time to get a great deal. Interest rates are fabulous -- bouncing around 6 percent -- and there is plenty of financing available."There's a great selection of properties on the market, so buyers can take their time and find the right house and a good deal," Ellis said.

Sellers find themselves in a challenging market. "If you want to sell your home in today's market," Ellis said, "you really need to hire a professional agent who knows what they're doing. There are simply more homes out there and sellers need to price their homes correctly, present them properly and market them professionally."

It bears repeating: the moral is not simply to be a buyer rather than a seller, but to get professional help on either end!

The Sky is Not Falling, Part II

The folks over at Real Estate Bloggers have crunched some numbers and come up with some good tidings for the New Year. Their conclusion:

Housing prices in most major cities are still showing long term gains even in the face of a difficult market.

(The bold print is in the original: one has to speak loudly to be heard in this climate!)

Chicago is no exception, but rather a prime example of this trend. Happy New Year!