Chicago home sales up 32% from last year

The inventory of homes available for sale in the Chicago area continued to be whittled down in January but prices were relatively flat from a year ago.

The Illinois Association of Realtors said Thursday that 6,244 existing single-family homes and condos were sold in the nine-county Chicago area last month, a 36.8 percent year-over-year gain. The median price of a home sold last month was $141,000, up 0.7 percent from $140,000 in January 2012.

Pricing gains were more impressive within the city of Chicago, where the median price of a home sold last month was $159,000, up 7.4 percent from a year ago. Condos fared even better, as the median price rose 8.7 percent from last year, to $202,500 in January.

The number of homes sold in Chicago last month rose 32.2 percent from its year-ago pace, to 1,485 properties sold.

Lack of inventory remains an issue and is leading to quicker sales. Within the city, for example, the number of properties listed for sale last month was down 41.6 percent from a year ago. As a result, it took an average of 78 days to sell a Chicago home last month. A year ago in January, it took an average of 89 days.

For the entire Chicago area, inventory was down almost 37 percent and market time decreased 16 percent from a year ago.

"Foreclosures continue to dampen price gains and reduce inventory levels as prospective sellers are wary of the effect these properties have on their own prospects," said Geoffrey J.D. Hewings, a University of Illinois economist, in a statement.

mepodmolik@tribune.com | Twitter @mepodmolik

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Jesse Jackson Jr., Sandi Jackson expected to plead guilty today

Jesse Jr. and Sandi Jackson have arrived to court in Washington where they are expected to plead guilty to federal charges

WASHINGTON — Former Rep. Jesse Jackson Jr. and his wife, former Chicago Ald. Sandi Jackson, arrived at federal court in Washington, D.C. this morning, where they are expected to plead guilty to federal charges connected to the spending of more than $750,000 in campaign cash to buy luxury items, memorabilia and other goods.

Neither responded to shouted questions from reporters as the two stepped out of a black SUV and entered the U.S. District Court building. Sandi Jackson walked ahead of her husband, carrying a satchel. Jackson Jr. looked up when reporters yelled questions but said nothing and looked down as he went into the building.

Minutes later, his father the Rev. Jesse Jackson Sr. and other family members walked through the front entrance of the courthouse, their arms linked together.

Attorneys familiar with public corruption investigations said the amount of campaign cash allegedly converted to personal use in this case is the largest of any that they can remember.

Jackson Jr., who has been largely out of the public eye for eight months, is to appear in court at 9:30 a.m. Chicago time. His wife is to appear at 1:30 p.m. Chicago time. Both Jacksons will stand before U.S. District Court Judge Robert Wilkins.

Sentencing is not expected for several weeks. Jackson Jr. faces up to five years in prison, while she faces up to three years, according to the U.S. Attorney’s Office for the District of Columbia.

Jackson Jr., 47, was in the House of Representatives for 17 years until he resigned last November. Sandi Jackson, 49, was a Chicago alderman from 2007 until she stepped down in January.

He is charged with conspiracy in a case involving a $43,350 men’s Rolex watch, nearly $9,600 in children’s furniture and $5,150 in cashmere clothing and furs, court papers show. She is charged with filing false tax returns for six years, most recently calendar year 2011.

When separate felony charges were filed against them Friday, their attorneys said the two would plead guilty.

Prosecutors also are seeking a $750,000 judgment against Jackson Jr. and the forfeiture of thousands of dollars of goods he purchased, including cashmere clothing, furs and an array of memorabilia from celebrities including Michael Jackson, Bruce Lee and civil rights leader Martin Luther King Jr.

Jackson Jr. began a mysterious medical leave of absence last June for what was eventually described as bipolar disorder. Though he did not campaign for re-election, he won another term last Nov. 6 while being treated at the Mayo Clinic in Minnesota. He left office two weeks later, saying he was cooperating with federal investigators.

Married for more than 20 years, the Jacksons have a 12-year-old daughter and a 9-year-old son. The family has homes in Washington and on Chicago’s South Side.

Washington defense attorney Stan Brand, the former general counsel of the House of Representatives, said Tuesday that Jackson Jr.’s case involved the largest sum of money he’s seen in a case involving personal use of campaign money. “Historically, there have been members of Congress who either inadvertently or maybe purposefully, but not to this magnitude, used campaign funds inappropriately,” he said.

Brand said that when the dollar figure involved is low, a lawmaker may be fined and ordered to reimburse the money. “This is so large, the Department of Justice decided to make his case criminal,” he said.

Other attorneys said they could not remember a bigger case of its kind. Washington attorney Ken Gross, a former lawyer for the Federal Election Commission, said: “Directly dipping into your campaign coffers, and spending money on personal items, I can’t recall a case where it involved this much money.”

Brand once represented another disgraced Illinois Democratic congressman, Rep. Dan Rostenkowski, who in 1996 pleaded guilty to two counts of mail fraud. Rostenkowski was later represented by attorney Dan Webb, who is Sandi Jackson’s counsel.

Rostenkowski, who died in 2010, entered his pleas and received his punishment in the U.S. District Court for the District of Columbia — the same venue on the Jacksons’ calendars on Wednesday.

kskiba@tribune.com

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Sony set to make pre-emptive strike on Microsoft with PS4

TOKYO (Reuters) - Sony Corp is expected to showcase a new PlayStation console on Wednesday in a pre-emptive strike against Microsoft Corp's bid to make its Xbox the world's leading hub for household entertainment.

The rare PlayStation event in New York comes amid industry speculation that Microsoft is set to unveil the successor to its Xbox 360, which beats the seven-year-old PlayStation 3's online network with features such as voice commands on interactive gaming and superior connectivity to smartphones and tablets.

"Their focus is on establishing a beachhead for the next generation of consoles, and that's what February 20 is all about," said P.J. McNealy, CEO and founder of Digital World Research. "The reality is they have been playing catch-up."

Pushing ahead of Microsoft's Xbox and Nintendo Co Ltd's new Wii U could help Sony revive an electronics business hurt by a dearth of hit gadgets, a collapse in TV sales and the convergence of consumer interest around tablets and smartphones built by rivals Apple Inc and Samsung Electronics Co Ltd.

Tablets and smartphones already account for around 10 percent of the $80 billion gaming market. Those mobile devices, analysts predict, will within a few years be as powerful as the current slew of game-only consoles.

After six years, Sony PlayStation sales are just shy of Xbox's 67 million installed base and well behind the 100-million selling Wii, analysts said.

A lackluster launch in November of the Wii successor, the Wii U, gives Sony a chance to focus on toppling Microsoft as all three battle the encroachment of casual gaming on tablets and smartphones. Nintendo cut its sales target to 4 million machines from 5.5 million for the year ending March 31.

STREAMING

Microsoft's answer to the casual gaming threat has been software that gives users extra content and allows them to surf the Internet from their mobile devices. The Xbox already streams Netflix and ESPN and links to tablets and smartphones using Windows or Apple's iOS and Google Inc's Android. Sony's PS3 online network has lagged.

"For Sony, they have to come out and make this PlayStation event the definitive statement of why gamers need to adopt the PlayStation 4 or PlayStation Orbis or whatever they end up calling it," said Greg Miller, PlayStation executive editor at video game site IGN.com.

Sony's purchase in July of U.S. cloud-based gaming company Gaikai for $380 million hints that the Japanese company will pursue a similar streaming strategy to Microsoft. Sony, industry watchers say, may also offer an expanded range of free games to counter the threat from casual gaming.

Sony, which under its CEO Kazuo Hirai is focusing on gaming, mobile devices and cameras, needs a hit product. But by betting on a PS3 successor, Hirai, whose most profitable business is life insurance, risks deepening consumer electronic losses as he will have to sell consoles at below the manufacturing cost to gain market traction.

That choice is made harder because the other two pillars of Hirai's new Sony - cameras and mobile - are losing money.

Sony expects to post a $1.4 billion operating profit in the current fiscal year. Yet, much of that rebound is gains from offloading real estate, including $1.1 billion for its New York headquarters.

The PlayStation event in New York starts at 2300 GMT (1800 EST).

($1 = 93.5200 Japanese yen)

(Additional reporting by Reiji Murai; Editing by Ryan Woo)

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Armstrong facing Wednesday deadline with USADA

AUSTIN, Texas (AP) — Lance Armstrong is facing a Wednesday deadline to decide whether he will meet with U.S. Anti-Doping Agency officials and talk with them under oath about what he knows about performance-enhancing drug use in cycling.

The agency has said Armstrong's cooperation in its cleanup effort is the only path open to Armstrong if his lifetime ban from sports is to be reduced.

Armstrong has given mixed signals about whether he plans to talk with USADA officials. Armstrong attorney Tim Herman previously suggested Armstrong would not meet with USADA before the agency's original Feb. 6 deadline. The two sides then agreed to give Armstrong another two weeks to work out an interview with investigators.

Armstrong previously denied using performance-enhancing drugs, but in January admitted doping to win seven Tour de France titles.

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Future science: Using 3D worlds to visualize data

CHICAGO (AP) — Take a walk through a human brain? Fly over the surface of Mars? Computer scientists at the University of Illinois at Chicago are pushing science fiction closer to reality with a wraparound virtual world where a researcher wearing 3D glasses can do all that and more.

In the system, known as CAVE2, an 8-foot-high screen encircles the viewer 320 degrees. A panorama of images springs from 72 stereoscopic liquid crystal display panels, conveying a dizzying sense of being able to touch what's not really there.

As far back as 1950, sci-fi author Ray Bradbury imagined a children's nursery that could make bedtime stories disturbingly real. "Star Trek" fans might remember the holodeck as the virtual playground where the fictional Enterprise crew relaxed in fantasy worlds.

The Illinois computer scientists have more serious matters in mind when they hand visitors 3D glasses and a controller called a "wand." Scientists in many fields today share a common challenge: How to truly understand overwhelming amounts of data. Jason Leigh, co-inventor of the CAVE2 virtual reality system, believes this technology answers that challenge.

"In the next five years, we anticipate using the CAVE to look at really large-scale data to help scientists make sense of that information. CAVEs are essentially fantastic lenses for bringing data into focus," Leigh said.

The CAVE2 virtual world could change the way doctors are trained and improve patient care, Leigh said. Pharmaceutical researchers could use it to model the way new drugs bind to proteins in the human body. Car designers could virtually "drive" their new vehicle designs.

Imagine turning massive amounts of data — the forces behind a hurricane, for example — into a simulation that a weather researcher could enlarge and explore from the inside. Architects could walk through their skyscrapers before they are built. Surgeons could rehearse a procedure using data from an individual patient.

But the size and expense of room-based virtual reality systems may prove insurmountable barriers to widespread use, said Henry Fuchs, a computer science professor at the University of North Carolina at Chapel Hill, who is familiar with the CAVE technology but wasn't involved in its development.

While he calls the CAVE2 "a national treasure," Fuchs predicts a smaller technology such as Google's Internet-connected eyeglasses will do more to revolutionize medicine than the CAVE. Still, he says large displays are the best way today for people to interact and collaborate.

Believers include the people at Marshalltown, Iowa-based Mechdyne Corp., which has licensed the CAVE2 technology for three years and plans to market it to hospitals, the military and in the oil and gas industry, said Kurt Hoffmeister of Mechdyne.

In Chicago, researchers and graduate students are creating virtual scenarios for testing in the CAVE2. The Mars flyover is created from real NASA data. The brain tour is based on the layout of blood vessels in a real patient.

Brain surgeon Ali Alaraj remembered the first time he viewed the brain using the CAVE2.

"You can walk between the blood vessels," said the University of Illinois College of Medicine neurosurgeon. "You can look at the arteries from below. You can look at the arteries from the side.... That was science fiction for me."

Would doctors process information faster with fewer errors using CAVE2? That's the question behind a proposed study that would compare CAVE2 to conventional methods of detecting brain aneurysms and determining proper treatment, said Andreas Linninger, UIC professor of bioengineering, chemical engineering and computer science.

But it's not all serious business at the lab.

In his spare time during the past two years, research assistant Arthur Nishimoto has been programming the CAVE2 computer with the specifications for the fictional Starship Enterprise. He now can walk around his life-size recreation of the TV spacecraft.

The original technology, introduced in the early 1990s, was called CAVE, which stood for Cave Automatic Virtual Environment and also cleverly referred to Plato's cave, the philosopher's analogy about shadows and reality. It was named by former lab co-directors Tom DeFanti and Dan Sandin.

The second generation of the CAVE, invented by Leigh and his collaborator Andy Johnson, has higher resolution. The project was funded by the National Science Foundation and the Department of Energy.

"It's fantastic to come to work. Every day is like getting to live a science fiction dream," Leigh said. "To do science in this kind of environment is absolutely amazing."

___

AP Medical Writer Carla K. Johnson can be reached at http://www.twitter.com/CarlaKJohnson.

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Robin Roberts returns to 'Good Morning America'

NEW YORK (AP) — Five months after undergoing a bone marrow transplant, Robin Roberts is back on television in the morning.

Roberts said Wednesday she'd been waiting 174 days "to say this, good morning America."

The morning-show host is recovering from MDS, a blood and bone marrow disease. She looked thin with close-cropped hair but was smiling broadly, back at work on "Good Morning America" at ABC's studio in New York.

Roberts was welcomed back in a taped message from President Barack Obama and his wife, Michelle, former ESPN colleagues and Magic Johnson.

ABC announced Roberts will interview the first lady later this week, to be shown next Tuesday.

ABC News President Ben Sherwood came into the studio to give fist bumps to the anchors at the 7:25 a.m. EST break. He said Roberts' health will be closely monitored to make sure she doesn't overdo it at the beginning.

"This was up to Robin, her doctors and God," Sherwood said. "It's a day that we all rejoice."

ABC didn't miss a beat with her absence, continuing in first place in the ratings after first overcoming NBC's "Today" show last spring. Sherwood said the success with Roberts' absence surprised him.

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OfficeMax to buy Office Depot, really

Office Depot Inc. will buy Naperville-based Office Max Inc. in a $1.17 billion stock transfer, the companies announced Wednesday, ending two hours of confusion about whether a deal had been reached.

After days of speculation that a deal was close, the news was buried on the fourth page of Office Depot's earnings press release. Nearly an hour after it came out, there was still no mention on OfficeMax's website nor the SEC and other investor websites.

Office Depot will issue 2.69 new shares of common stock for each outstanding common share of OfficeMax. At Tuesday's closing prices, the deal is valued at $13.50 per share, or $1.17 billion, based on 86.7 million shares outstanding as of Oct. 26.

After the merger is completed, Office Depot's board will consist of an equal number of directors chosen by that company and OfficeMax.

The news comes as both companies face pressure from investors to boost profitability and lift their sagging shares.

Analysts say they expect far less pushback from antitrust authorities for this deal than what Office Depot faced in the 1990s, when it tried to merge with Staples, given the changes in the office supply market since then.

Underscoring how tough that business has become, Office Depot reported a fourth-quarter net loss, hurt by a 6 percent decrease in comparable sales at its North American stores and a revenue drop at its unit that serves North American businesses.

Office supply retailers, which are often seen as reflecting overall economic health, have suffered as demand for their products fell in the years after the last U.S. recession led companies to cut spending.

They also face strong competition from the likes of Amazon and Wal-Mart Stores Inc in selling everything from pens and notebooks to furniture and break room supplies to government, businesses and individuals.

SMALL PREMIUM

The offer represented a premium of just under 4 percent to OfficeMax's $13 close. It was not immediately clear if that was enough to satisfy one of the company's largest shareholders, Neuberger Berman, which said earlier this week it would support a deal depending on the terms.

OfficeMax shares rose 9.2 percent to $14.20 in premarket trading. Office Depot was up 10 percent at $5.52, meaning that OfficeMax was still trading below the value of the bid.

The deal, considered long overdue by many on Wall Street, will also give Office Depot and OfficeMax a chance to save hundreds of millions of dollars by closing stores, cutting advertising costs and streamlining their supply chain.

Industry experts have long hoped Office Depot would join hands with OfficeMax to take on Staples, which boosted its international business and clout with suppliers by buying Dutch rival Corporate Express in 2008.

BB&T Capital Markets analyst Anthony Chukumba said the Office Depot-OfficeMax combination would help Staples, however.

"Clearly, you can't make this deal work unless you close a bunch of stores," he said. "Store rationalization is long overdue, and Staples will clearly benefit from just having fewer stores to compete with."

Staples has 39.9 percent of the U.S. office supply market, Office Depot 19.2 percent and OfficeMax holds 15.7 percent, according to Euromonitor International.

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2 teens die in Antioch crash: 'I just saw headlights spin'

Two teenagers were killed when their SUV crashed into a tree in Antioch in heavy rain, authorities said.

Joel Wittkamp, 16, and Ashley Seay, 17, were traveling west when their Chevrolet Trailblazer left the road in the 27000 block of Wilmot Road around 7 p.m. Monday, according to the Lake County sheriff's office. The SUV went through a yard before hitting the tree, the office said.

Both teens died on the scene. Joel, who was driving, was from Antioch and Ashley was from Lindenhurst, according to the Lake County coroner's office.

Authorities said they believe weather contributed to the crash. A man who lives where the crash occurred said it was raining hard when the accident occurred.

"It was pouring," said Tim Staples.

Staples said he was home when "I just saw the headlights spin ... We ran out and you could see the car was in the tree, the tree was on the car ... a mangled car I couldn't recognize."

"We checked the scene," he said. "We had flashlights and we looked inside. It didn't look promising, it looked really bad."

He said firefighters reached the scene in 7 or 8 minutes. "It took them an hour to get them out. They had to take the top of the car off."

Staples said the car hit a tree he had planted on his property 30 years ago.

Joel attended Antioch High School, officials said.

"We have counselors who are available," said Principal John Whitehurst. "Someone is following the young man’s schedule. If there were kids close to him, we are identifying who they are."

Whitehurst noted an earlier tragedy last November, when freshman Nicole Parfitt, 14, and her father were killed in a plane crash. "I know this is going to bring back some really unfortunate memories with kids intimately familiar with the incident," he said.

chicagobreaking@tribune.com

Twitter: @ChicagoBreaking

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Burger King takes down Twitter account after hack attack

NEW YORK (Reuters) - Hackers breached the Twitter account of fast-food chain Burger King, posting the online equivalent of graffiti and sometimes making little sense.

Burger King Worldwide Inc suspended its Twitter account about an hour after it learned of the attack at 12:24 p.m. EST on Monday, company spokesman Bryson Thornton said in an email.

"It has come to our attention that the Twitter account of the BURGER KING® brand has been hacked," the company said in a statement. "We have worked directly with administrators to suspend the account until we are able to re-establish our legitimate site and authentic postings."

Several tweets carried the logo of Burger King's larger rival McDonald's, but spelled the latter company's name incorrectly. Others sought to tarnish Burger King, the third-largest U.S. hamburger chain, and its employees.

"Just got sold to McDonalds," one tweet said, adding "FREDOM IS FAILURE".

(Reporting by Ilaina Jonas; Editing by Dale Hudson)

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Pistorius says no intentions to kill girlfriend

PRETORIA, South Africa (AP) — Oscar Pistorius told a packed courtroom Tuesday that he shot his girlfriend to death by mistake, thinking she was a robber. The prosecutor called it premeditated murder.

The double amputee said in an affidavit read by his lawyer at his bail hearing that he felt vulnerable because he did not have on his prosthetic legs when he pumped bullets into the locked bathroom door. Then, Pistorius said in the sworn statement, he realized that model Reeva Steenkamp was not in his bed.

"It filled me with horror and fear," he said.

He put on his prosthetic legs, tried to kick down the door, then bashed it in with a cricket bat to find Steenkamp, 29, shot inside. He said he ran downstairs with her, but "She died in my arms."

Prosecutor Gerrie Nel on Tuesday charged the 26-year-old athlete and Olympian with premeditated murder, alleging he took the time to put on his legs and walk some seven meters (yards) from the bed to the bathroom door before opening fire. A conviction of premeditated murder carries a mandatory sentence of life in jail.

The Valentine's Day shooting death has shocked South Africans and many around the world who idolized Pistorius for overcoming adversity to become a sports champion, competing in the London Olympics last year in track besides being a Paralympian. Steenkamp was a model and law graduate who made her debut on a South African reality TV program that was broadcast on Saturday, two days after her death.

The magistrate ruled that Pistorius faces the harshest bail requirements available in South African law.

Nel told the court that Pistorius fired into the door of a small bathroom where Steenkamp was cowering after a shouting match. He fired four times and three bullets hit Steenkamp, the prosecutor said.

"She couldn't go anywhere. You can run nowhere," prosecutor Nel argued. "It must have been horrific."

Pistorius sobbed softly as his lawyer, Barry Roux, insisted the shooting was an accident and that there was no evidence to substantiate a murder charge.

"Was it to kill her, or was it to get her out?" he asked about the broken-down door. "We submit it is not even murder. There is no concession this is a murder."

He said the state had provided no evidence that the couple quarreled nor offered a motive.

Nel rebutted: "The motive is 'I want to kill.'"

There were affadavits from friends of Pistorius and Steenkamp read out by defense lawyer Roux in the bail hearing.

The statements described a charming, happy couple. The night before the killing, they said, Pistorius and Steenkamp had canceled separate plans to spend the night before Valentine's Day together at his home.

As details emerged at the dramatic court hearing in the capital, Steenkamp's body was being cremated Tuesday at a memorial service in the south-coast port city of Port Elizabeth. The family said members had arrived from around the world. Six pallbearers carried her coffin, draped with a white cloth and covered in white flowers, into the church for the private service.

June Steenkamp, the mother, said the family wants answers.

"Why? Why my little girl? Why did this happen? Why did he do this?" she said in an interview published Monday in The Times newspaper.

Outside the court, several dozen singing women protested against domestic violence and waved placards urging Pistorius be refused bail. "Pistorius must rot in jail," one placard said.

South Africa has some of the world's worst rates of violence against females and the highest rate in the world of women killed by an intimate partner, according to a study by the Medical Research Council. Another council study estimates a child or woman is raped every four minutes. While homicide rates have dropped, the number of women killed by current or former partners has increased, said the council's Professor Rachel Jewkes. At least three women are killed by a partner every day in the country of 50 million, she said.

Steenkamp campaigned actively against domestic violence and had tweeted on Twitter that she planned to join a "Black Friday" protest by wearing black in honor of a 17-year-old girl who was gang-raped and mutilated two weeks ago.

What "she stood for, and the abuse against women, unfortunately it's gone right around and I think the Lord knows that statement is more powerful now," her uncle and the family spokesman Mike Steenkamp said after her memorial.

He said the family had planned a big get-together at Christmas but that had not been possible. "But we are here today as a family and the only one who's missing is Reeva," he said, breaking down and weeping.

Pistorius was born without fibula bones and had them amputated when he was 11 months.

The man known as the Blade Runner because of his running prostheses has lost several valuable sponsorships estimated to be worth more than $1 million a year.

On Tuesday, the athlete was ousted from a pro-gay campaign being launched in Cape Town, organizers said. In a video axed from the campaign, Pistorius says "You don't have to worry. You don't have to change. Take a deep breath and remember, 'It will get better.'"

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Associated Press writer Michelle Faul contributed from Johannesburg and AP photographer Schalk van Zuydam from Port Elizabeth.

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