Whats going on in the Illinois Housing Market - February 2010
I wouldn't break out your party hats: “We are encouraged by 
more signs of improvement in the Illinois housing market spurred by the tremendous buyer market conditions with sales increases for six months in a row statewide and eight months running in the Chicagoland nine-county region.” (IAR, 3/22/10)
Is the Tax Credit Helping: Households aren’t leaping to take advantage of the housing opportunities they perceive in today’s market because they are still concerned about job prospects and the state of the economy and not because of any negative concerns about the housing market.
Translation: People are not jumping after the tax credit like we'd hoped.
First-time buyers: Survey shows first-time buyers purchased 40 percent of homes in January, down from 43 percent in December. Investors accounted for 17 percent of transactions in January, up from 15 percent in December; the remaining sales were to repeat buyers. The survey also shows that buyer traffic increased 9.4 percent in January.
Translation: First-time buyers ARE the market.
FHA: 39 percent of recent buyers purchased a home with a FHA insured loan. “FHA helps provide affordable mortgage financing to homeowners, particularly first-time home buyers who are so important in drawing down inventory to help stabilize the current housing market.”
Translation: You better expect FHA financing as a seller and if you have a coach home, townhome, etc. your complex better be FHA approved. Not all complexes are approved.
Distressed homes: Distressed property accounted for 32 percent of fourth quarter 2009 transactions, down from 37 percent a year earlier. For all of 2009, distressed homes accounted for 36 percent of total sales last year. (NAR)
Foreclosures: California’s foreclosure rate ranked fourth highest among the states, with one in every 195 housing units receiving a foreclosure filing during the month, and Michigan’s foreclosure rate ranked fifth highest among the states, with one in every 226 housing units receiving a foreclosure filing. Other states with foreclosure rates among the nation’s 10 highest were Utah (one in every 275 housing units), Idaho (one in 296), Illinois (one in 305), Georgia (one in 331) and Maryland (one in 407). (RealtyTrac, 3/10/10)
Two Levels of Pricing: Many markets have two levels of pricing – distressed sales and traditional sales. Foreclosures and short-sales tend to carry prices as much as of 20 percent below traditional homes in the same area.
Translation: There are still many distressed sales pulling down market prices. Good for buyers, bad for sellers right now.
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