Sue Fox, @Properties. Direct 773.816.1788

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Chicago home prices drop 12% in year

filed under: Buyers, Chicago home prices, Chicago home sales, Market conditions, Sellers posted on December 25th, 2011

UNDER CONTRACT:
UNDER CONTRACT IN ANDERSONVILLE: This 4-bedroom house, listed at $524,500, found a buyer this month after more than a year on the market. The price started at $699,000 and was cut multiple times.

Merry Christmas! I hope everyone is enjoying the holiday season this year.

I just wanted to give you a quick update on where prices are heading: Down, in a word. The latest housing data from the Illinois Assn. of Realtors shows that Chicago home sales are picking up, but prices have continued to fall throughout 2011.

In November, sales of single-family houses and condos in Chicago totaled 1,377 — a 20.4% jump over the previous year. But nearly half of them involved short sales or foreclosures, troubled properties that are often sold at a discount. That’s the main reason, in my view, that Chicago’s median price has continued to slide.

The median price for a Chicago home sold in November was just $160,000. That’s 12.3% lower than it stood in November 2010 — and a startling 45% decline from the median price of $290,000 in November 2007.

Check out the plunge, year over year:

November 2007: 1859 sales and median price of $290,000

November 2008: 1093 sales and median price of $222,500

November 2009: 1905 sales and median price of $215,000

November 2010: 1144 sales and median price of $182,500

November 2011: 1377 sales and median price of $160,000

It seems that our local market is stabilizing as far as sales go, albeit with a lower volume of homes changing hands. But prices have yet to bounce back by any long-term measure. They may increase slightly for a month or two, but year-over-year home prices have declined for about half a decade now.

As the new year approaches, it looks like it will be a stellar year for home buyers, who now enjoy the lowest prices in 11 years and the lowest mortgage rates in more than half a century. Homeowners, however, will continue to suffer and sellers who are truly motivated will have to lower their asking prices to match this sunken market.

Written by Sue Fox //

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