Good Times, Bad Times for Chicago Real Estate

April 25, 2012

Just as good news swept into the Windy City with March home sales increasing 24 percent over the same period last year, some bad news has come on the coattails of that positive information.

Home Prices DeclineChicago area home sales fell 2.5 percent from January to February and are down 6.9 percent from a year ago, according to a report released Tuesday by Standard & Poor’s Case-Shiller home price index.

February posted the sixth straight month of decline for local home sales, putting it on par with where home sales were in May and June of 2000.

“While there might be pieces of good news in this report, such as some improvement in many annual rates of return, February 2012 data confirm that, broadly-speaking, home prices continued to decline in the early months of the year,” David M. Blitzer, chairman of the index committee at S&P Indices, said in a statement.

The S&P Case-Shiller index is a composite of home prices determined by tracking repeat sales of homes over time to gauge their rise or fall in value. The Chicago area index is down 37.5 percent from its peak in September 2006.

Prices are expected to continue to drop as strict lending standards remain the norm and distressed homes litter the market creating a bottleneck of foreclosures in the state court system’s already slow processing procedures.

The S&P Case-Shiller index of Chicagoland condominium prices showed a 2.4 percent decline in February from January, also its sixth monthly decline in a row. The index was down 9.1 percent from a year earlier and 39.3 percent from its September 2007 apex.

As the Chicago real estate region strives to move out of the traffic jam of foreclosures and declining home prices, it’s easy to say that the future looks grim. However, on the flip side, sellers are becoming more realistic in dealing with this turbulent market, resulting in a surge in home sales for the month of March.

As the song says, “all we need is just a little patience.” Right now, Chicagoland has to take the good with the bad as the real estate market climbs out of these down times to a more stable future.

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

Leave a Comment