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Chicago Homes - September 2007
Chicago Home Sales Plummet 36% As Fall Approaches...
If you’re looking to buy a home in the Chicago area...make certain that you drive a tough bargain.
The market for single family homes in Chicago and surrounding suburbs is very weak. The number of single family homes sold in Chicago has dropped along with the median price compared to the same period last year.
The most recent weekly Chicago real estate sales closing numbers from the Chicago Association of Realtors show that 132 single family homes were sold during the week of August 8 to August 21st. During the same week in 2006, 192 homes were sold, representing a 36% drop in sales.
The median sales price for homes sold during the week was up just a bit to $289,000 from $285,000 during the same week last year.
However, when the entire year of home sales is taken into consideration, prices for single family homes have risen slightly. According to the most recent report on Chicago real estate from the Illinois Association of Realtors, the average price of Chicago homes for sale has remained steady despite a 16.1 percent drop in sales from July 2006.
Condo closing numbers were also down. 393 units closed compared to 525 last year, down 25%.
Two, Three & Four Flat closings nose dived ...42 units closed down more than 50% from last year’s 86 units.
And, the number of homes for sale in Chicago continues to increase...
116,000 homes and condos are currently listed for sale...an astounding number, actually.
This number is ALMOST DOUBLE THE INVENTORY OF JUST TWO YEARS AGO.
Numbers for specific Chicago neighborhoods are mixed, according to the Chicago Association of Realtors. During the second quarter of 2007, Norwood Park saw a 5% increase while homes in Garfield Ridge sold for 11% less than during the same period of 2006.
Many counties in the greater Chicagoland area have seen an increase in prices for single family homes. “A sample of counties in the Chicagoland PMSA that saw increases in median home sale prices in the second quarter include Cook, up 4.2 percent to $269,900; DeKalb, up 1.9 percent to $185,000; Grundy, up 8.6 percent to $190,000; Kane, up 1.5 percent to $233,500; Lake, up 1.9 percent to $263,000; and Will, up 1.8 percent to $224,000.”
The real estate market for Chicago homes faces several pressures that continue to cause a slowdown in the market. Foreclosures around the greater Chicago area are up 40% over last year, but still remain well below the average increase in foreclosures seen across the nation. Also, many new home developments are coming on the market, adding to the current supply of Chicago homes for sale. The Chicago Spire is a very good example of new development rising in the skyline. This added supply increases the amount of time a property is on the market.
The amount of time that homes are on the Chicago real estate market has increased in almost every neighborhood in the city. Ashburn home owners must now wait an average of 112 days for their home to sell, up 80% over last year. If you own a home in Irving Park, it will take you 159 days to find a buyer.
These trends are very ominous for sellers...