Sue Fox, @Properties. Direct 773.816.1788

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Chicago home prices and sales stabilize

filed under: Buyers, Chicago home prices, Chicago home sales, Lakeview, Market conditions posted on October 20th, 2011

A MEDIAN:

A ROOM WITH A VIEW: What can you get these days for $190,000, the median home sale price in Chicago? Try this 2-bedroom, 1-bath condo with parking in a Lakeview high-rise at 525 W Hawthorne. Located on the 28th floor with views of the lake and city, it sold in September for $190,000 after several price reductions.

The Illinois Assn.of Realtors released its latest data today, showing that Chicago home prices and sales both rose somewhat in September, compared to the same month a year ago. On the face of it, that’s good news. It seems that prices — and the number of homes changing hands — are finally starting to stabilize in Chicago.

There were 1,498 home sales (single family and condominiums) in September, up 6.8% from the previous year. Chicago’s  median home price rose 5.6%, from $180,000 to $190,000.

Okay, $190,000 is better than $180,000. But it’s much worse than $225,000, which is where Chicago’s median price stood just two years ago, or $268,600, where it was three years ago. Check out the dramatic decline — in both prices and sales — over the past four years in Chicago:

Median prices:

  • 2007: $267,750
  • 2008: $268,600
  • 2009: $225,000
  • 2010: $180,000
  • 2011: $190,000

September sales:

  • 2007: 2172 sales
  • 2008: 1816 sales
  • 2009: 1918 sales
  • 2010: 1403 sales
  • 2011: 1498 sales

So it’s a little premature to break out the hallelujah chorus. Even though things seem to be improving a bit, Chicago home prices are down 29% and sales have fallen 31% in just four years. The drop in sales volume was particularly steep in the autumn of 2010, after the federal tax credits for home buyers expired and demand dried up. Now Chicago’s market has recovered slightly from that abysmal season, giving us a pretty good idea of what the new normal looks like.

“September home sales in the city of Chicago show signs of stabilization, with an increase in the units sold for both single family and condominiums,” said Bob Floss, president of the Chicago Association of Realtors. “While interest rates remain historically low and prices compelling, we remain concerned about the overall economic stability of our marketplace with unemployment numbers and job creation still top of mind for so many buyers and homeowners, alike.”

Written by Sue Fox //

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