May
10

More Evidence of a Home Buyer’s Market

May 10, 2011

Yesterday, we reported about Chicago real estate values and how it will most likely continue to be a buyer’s market for at least the rest of the year.

Today, there is more evidence to support that theory.

The Illinois Association of REALTORS has released its first quarter 2011 report to show that the sale of existing homes in Chicago fell 16.5 percent to 3,540 sales in that quarter compared to 4,241 sales in the first quarter of 2010.

for sale sign with a price reduced sign on top of it.In the nine-county Chicagoland area, home sales were down 9.9 percent to 12,937 homes sold last quarter compared to 14,364 sold during the same quarter last year.

Statewide, Illinois posted an 11.2 percent drop in home sales; from 21,320 in the first quarter of 2010 to 18,940 in the first quarter of 2011.

And, of course, home values have fallen across the board:

*Chicago: Median price in the first quarter of 2011 was $180,000, an 8.2 percent drop from $196,000 in the first quarter of 2010.

*Chicago-area: Median 2011 first-quarter price was $155,000, an 11.7 percent drop from $175,500 during first quarter 2010.

*Illinois: Median home sale price was $131,175 during 2011 first quarter, an 8.9 percent drop from $144,000 during the same time last year.

“Sales in the first quarter slowed from the same period a year ago given the absence of the federal tax credit that was in full swing last year,” said REALTOR® Sheryl Grider Whitehurst, ABR, CRB, GRI, president of the Illinois Association of REALTORS®.

“Affordability conditions reached a peak in the first quarter prompted by the low interest rates, and these ideal conditions should continue for the spring selling season with lower pricing making housing more affordable for buyers who are eager to purchase property.”

Another study released Tuesday was the March Home Price Index by CoreLogic.

The data showed that Illinois is one of the five states with the greatest year-over-year depreciation, after home prices here fell 10.6 percent in March 2011 compared to March 2010.

If you take out foreclosures and short sales, however, our numbers were only down 3.9 percent from a year ago.

Across the country, home prices in March fell for the eighth straight month; a 7.5 percent drop over March 2010. But, once again, if you take out the distressed sales, year-over-year home prices declined by a mere .96 percent.

“Absent the tax credit, it is understandable that we see prices continue to decline when compared with last year,” said Mark Fleming, chief economist with CoreLogic. “As we move further away from that support, we will see a leveling of prices and eventually organic improvements in the market.”

Until then, home buyer’s should enjoy their market.

About The Author

Tracey

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3 Comments

1

[...] Chicago-area home prices are extremely low right now, and nothing is lower than the price of a bank-owned home being sold via auction. [...]

3

Great information provided for those looking to purchase an Illinois Condo or any type of housing in the area.

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