Northwest Suburbs Housing Market May 2010

If you're in the negative, anything is a gain!  That's how I would like to start off this post.  You'll be hearing all these 'gain' statistics and numbers getting posted but let's be honest - if you're suddenly making any kind of ground it's a positive note.  But .... we were so far down that we are no where close to the levels of 2008.  


"The Illinois Housing Market saw positive indicators nearly across the board in April with upward momentum in home prices and sales jumping 34.4 percent on the heels of the home buyer tax credit deadline. According to the Illinois Association of REALTORS® latest report, statewide total home sales (which include both single-family and condominiums) in April 2010 were up 34.4 percent, totaling 10,323 homes sold compared to April 2009 sales of 7,683 homes."

Lyn's Thoughts - Sales are up but then any increase from zero looks great!  We will see next month how the tax credit has made any type of difference in home sales.

“Home prices made sizable gains statewide, up five percent for the month of April, with nearly half of Illinois counties reporting home price gains including Cook and Lake counties in Chicagoland."

Lyn's Thoughts - OK, we'll take it.  I am not seeing ANY price increase at all for the Northwest Suburban area.  We are just trying to make sales at this point and not seeing any increase.  I will add that higher priced homes have been selling better which might adjust the median sales prices upward.  Six months ago, we did not see any sales over the $400,000 market for quite some time.  This is a sign of buyer confidence.

“Mortgage interest rates remain at record lows. With affordable prices and new listings coming on the market, buyers will find good opportunities even after the tax credit.”

Lyn's Thoughts - True.  The interest rates are at rock bottom now.  The anticipation that rates would increase after the expiration of the tax credit hasn't happened.  Surprise!  Nothing is working right and even the economic guru's can't get a handle on things for a future trend.  Time for a new 'Magic 8 Ball'.  

"According to the IAR report, total home sales (both single-family and condominiums) comparing April 2010 to April 2009 were up in 57 of 99 Illinois counties reporting with 47 of 99 counties posting median price increases. The following Illinois counties reported both sales and median price increases for the month: Champaign sales up 47.9 percent, median price up 7.3 percent to $142,750; Cook sales up 45.5 percent, median price up 1.8 percent to $195,000; Lake sales up 44.0 percent, median price up 11.2 percent to $200,000; McLean sales up 29.5 percent, median price up 12.2 percent to $152,000; Peoria, sales up 21.4 percent, median price up 4.4 percent to $107,000; and Sangamon sales up 23.9 percent, median price up 11.3 percent to $120,100."

Lyn's Thoughts - I don't mean to be a party pooper here but any increase from zero is a plus!  These guys sure know how to spin the numbers into a 'whisp of wonderfulness!' (new word I just coined!)

Sales have been tough and there is still aggressive pricing vs. regular sellers and foreclosures.  The foreclosures are pulling ahead in the race with sales.  Short sales have been left in the dust (kind of like riding a 3 legged horse).  Why should buyers bother with the hassle?  Unless the price is adjusted for the 'hassle factor' as I've come to call it.  Not enough short sellers have figured this out or banks for that matter.

Appraisals are still coming in lower than the sales prices which makes it almost impossible for the sales prices to increase despite what these figures state.  Sellers are fighting for every $1000 they can get from the buyers lender.



January 2010 Housing Market
November 2009 Housing Market


Resources:  Illinois Association of Realtors (IAR) report 05/24/10; Sales and price information is generated from a survey of Multiple Listing Service sales reported by 37 participating Illinois REALTOR® local boards and associations. The Chicago PMSA, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.