Home Prices Falling In Chicagoland
The Illinois realtors have some numbers out. “Single-family home sales were up 4.4 percent in February, while total home sales (which include single-family and condominiums) were up 1.8 percent to 9,936 homes sold, compared to 9,759 homes sold in February 2005. The Illinois median home price in February was $190,000, up 2.2 percent from $185,900 a year earlier.”
“‘As we readjust from a robust seller’s market to one that is more balanced for buyers and sellers, consumers should seek professional counsel from a realtor regarding competitive pricing of the home, how to best show the home, current market conditions and negotiations,’ (broker) Stan Sieron in Belleville.”
“In the Chicagoland Primary Metropolitan Statistical Area (PMSA), single-family home sales totaled 3,890 in February 2006, up 0.1 percent from 3,888 home sales in the same month last year. The median single-family home price for the Chicagoland PMSA was $255,000, up 8.1 percent from $236,000 in February 2005.”
Checking the statistics from the associations website,, the following is the Chicago single family median prices:
Feb. 05..$236,000
Mar. 05..$249,000
Apr. 05..$254,000
May. 05..$260,300
Jun. 05..$279,000
Jul. 05..$273,000
Aug. 05..$279,900
Sep. 05..$207,000* (typo?)
Oct. 05..$265,000
Nov. 05..$267,000
Dec. 05..$264,561
Jan. 06..$261,000
Feb, 06..$255,000
Here is a report on the Chicago Area Housing Market that I posted on March 12th.
David
Bubble Meter Blog
They don’t make it easy to pull these numbers out. I am fairly sure the statewide numbers are similar and condos have probably fallen more in percentage terms. If I have time, I will update this Illinios post later today.
How do you know that you are not looking at normal seasonal variation in the price?
I agree. Without at least 24 months of data, it’s hard to guage trends.
OT, but here is something interesting: Everyone knows the Fed will hike the FF rate up to 4.75% at their next meeting, but is it normal for the thirty-year treasury bond to price this in so tightly in advance?
http://tinyurl.com/qykot
Look at the Chicago area inventory. Almost 1000 homes added everyday. Almost 30K homes added to inventory during last month.
http://chicagobubble.blogspot.com
What is the greater ChiTown population — 10m or so? 30K sounds like a drop in the bucket…
About 8 mil in greater chicago area, about 3 mil in the actual city.
It’s not the number that’s important,it’s the percentage increase.
If there were 70k houses available on 1/19 and there are 110k now that’s a 57% increase in just over 2 months. That’s a lot!
O/T
In my area in the Glendale near los angeles, everything above 800K is sitting, this is significant because almost 50% of all listings fall into that price range.
I remember last year exactly at this time, my wife and I were househunting but every house even the above 800K range sold w/in a few weeks with often bidding wars. This year it totally different at least in this area.
Anyone else can compare last year experience to this year?
I’m seeing the same thing…no more bidding wars at that price range now. The good stuff is still selling, just taking longer.
On Long Island too. $800K homes aren’t moving, but then again, nothing is really moving here. Inventory is going up 60 homes a day for the past two months. Current inventory 26,000+, last year, this time was 14,000+.
I saw the same in Pasadena area…the “fall wall” that prices/sales hit. Less frenzy, only “reasonably” priced homes moving quickly, price drops in some segments.
I wonder how much money people in california actually make.
I make $140k/year and refuse to buy anything higher than $300k.
How are you people affording the $800k houses?
Some people make a lot some people don’t…just like anywhere else. But I do believe many people have to stretch out here to get a home in a decent area (hence the amount of ARM loans). While 300k can probably get you a decent SFR in Chicago, that same amount will barely get you a condo in a marginal area out here. So, regardless of income (unless you are super-rich) many people spend much of their income on housing here. Many homeowners also have the benefit of putting huge downpayments on homes from equity gains over the years (e.g. my wife and I and we make decent salaries 175k combined). People that don’t just save their cash until the right time comes (like my buddy and his wife they make a combined 200k/yr and live in a $1100/month apt) to buy.
You would be suprisied how many people just don’t get it. Starters homes here run about 300K. For a 30 year old 1,300 SF ranch. At 140K per year you are what in the top 10-5% in this country. Where are the famlies making 50K going to live?
On msn.com it says housing sales up , due to warm weather. Appreciation is going up due to our healthy economy…etc…etc…David L.
It’s not warm in Chicago. We’ve been averaging 10 degrees below normal for the last week or so.
OT but new today. (www.ocregister.com/ocregister/homepage/abox/article_1067561.php)……Of the 4,212 built or planned housing units at the old base, 879 are planned as affordable. And of those affordable units, 564 are expected to be available for purchase; the remainder will be rentals.”
You down in OC are in for it now. This is the same crap Monterey County has been using to keep the bubble going. Low income homeowners spread into high priced housing tracts. Watch for graffiti to start appearing, streets that look like an LA parking lot, lawns unkempt, etc. The best part is what you high income owners will be paying for your property and taxes to live in one of these neighborhoods. And down the road some smart ass lawyer will void the low income earners contract and they will be able to sell for full value.
The soon-to-be completed design and contract with Shea/Centex homes for development of the central area of the former air base is expected to designate 453 of the planned 2,105 housing units as “affordable,” or subsidized so lower-income people can afford to rent or buy them.
They’ve been doing that for years in Irvine. I was actually worried when I bought my condo because there was an “affordable” apartment complex across the street…I thought there would be trouble with noise, graffiti, etc. but it hasn’t been too bad. I’ve seen one graffiti marking in the 4 years I’ve lived there. When I talked with the apartment complex manager, she said there was a 2 year waiting list and that renters must make decent incomes to live there. I guess most feel privileged to live there, so they don’t make too much of a fuss.
I’m no socialist, I don’t believe in subsidizing everyone’s lives, but I don’t see anything inherently wrong with a city trying to help people with affordable living arrangements if it takes more cars off the streets (makes a big difference in SoCal) and gives them an incentive to keep working in the city. Hey, and a little diversity isn’t bad either!
summer peak and feb existing sales = a sale in the fall after 3-6 months on the market- inventory should be falling for the spring season (NOT)
sos
What is going on depends on where you are. In non-bubble markets, it makes sense that activity is increasing — beat the mortgage rate increase. In bubble markets, the Mexican Standoff is in effect. But all the bubble markets have to do is get a sufficient price decline, and their problems will be over — except for those who bought at the top.
testing speed
IMO, I think David L. is stressing on the numbers out today which is why he called them an “aberration”. The higher than expected sales not only add fuel to increase interest rates but also make it harder to convince a seller to lower their prices. If (according to TxChick’s previous post) is correct and NOTHING is selling now and their is NO market and sellers don’t lower their prices then the NOTHING-NO market continues.
What do you think would happen if the sales figures came out and they were the lowest EVER on record?
its to see a trend in these number a year ago prices were lower, but six months ago they were higher. seems like this peaked awhile back but prices are still higher than 2 years ago
http://www.dcbubble.blogspot.com
alright….’recalibration’ is in progress….stay away!
GO (RE)BEARS!
I don’t understand why the average value of a house shouldn’t decline over time anyways. The only legitimate reason I can think of is that we really are running out of land, but that myth has been debunked repeatedly here.
Also, I think the whole idea of investing in real estate or whatver is flawed. History has given people the idea that certain investments always go up in general: 401ks, mutual funds, real estate. Will someone please explain to me where this money magically comes from? In what other type of gambling can everyone who plays win?
History hasn’t given people the idea that certain investments always go up - at least, not long-term history. Evidently it’s part of basic human psychology to believe that recent and current results will always continue, i.e., the “this time it’s different” syndrome. The rush that we get when things are going well is nothing to the pit of despair we fall into when things go south, so we don’t want to believe that things can go south. What history teaches us is that markets are cyclical and have been for a very long time.
Things are slowing in Irvine.
Oops, make that Irvine, TX
Not necessarily bubble related, but interesting. A suburban Chicago builder is being sued by two suburbs for forging survey certifications and not paying required subdivision fees.
http://www.chicagotribune.com/business/chi-0603230287mar23,1,4655046.story?coll=chi-business-hed