Sue Fox, @Properties. Direct 773.816.1788

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Back to 2000! Chicago home prices fall to levels last seen 11 years ago

filed under: Bungalows, Chicago home prices, Chicago home sales, Foreclosures, Irving Park, Market conditions, Short sales posted on November 22nd, 2011

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A BUNGALOW BARGAIN: This 3-bedroom house, a foreclosure in old Irving Park, sold in October for $160,000 -- which is roughly the median price in Chicago. Hundreds of North Side bungalows in good condition can now be had for similar amounts, as prices return to levels not seen in a decade.

Eleven years ago, the U.S. presidency was up in the air, with everyone waiting to see whether George Bush or Al Gore had won the 2000 election as Florida struggled to recount its votes. The Y2K bug had proven to be relatively harmless, and 9/11 was still in the planning stages. No one had ever heard of the Ipod, Friendster, or Wikipedia, let alone the Iphone, Facebook, or WikiLeaks.

And the median home price was about $174,000 in Chicago. Today, according to data just released by the Illinois Assn. of Realtors, we’re back to those days. In fact, Chicago’s median price slid even lower last month — to $162,000 — than it stood in the year 2000.

While the median price fluctuates a bit from month to month, this is the lowest I’ve seen it in ages. Chicago’s home prices have fallen 11.5% just in the past year. This is a pretty grim sign for anyone hoping to sell their property.

However, the number of homes changing hands is up — another indication that the Chicago market may be stabilizing, albeit at a lower price point. Nearly half of the sales these days involve foreclosures or short sales, and most of them are at prices below $200,000. Sales of single-family houses and condominiums totaled 1,312 in October, up 7.9% from 1,216 homes sold in October 2010.

“The increase in units sold in the city of Chicago continues to show the absorption of distressed properties in the market,” said Bob Floss, president of the Chicago Assn. of Realtors. “Prospective buyers in the market are making investments that make sense long-term.”

Written by Sue Fox //

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