Given the vast geography of the Chicago Area - City and Suburbs - it's quite hard to generalize as to how the Real Estate Market here will turn in 2013. Some Chicago Neighborhoods are undergoing quite a resurgence, with many Homes and Condos selling in Multiple Offers, quickly after coming to market. Other areas continue sluggish, as a great number of distressed, underwater, or bank-owned properties predominate.
Here's a sampling of some of the transactions our Team has been involved in, since the start of the year -
1. Small 2 Bedroom Condo in Northwest Suburb of Palatine IL - UNDER CONTRACT in 6 Days, Multiple Offers, 107.8% of Asking Price (Short Sale Property)
2. Large 3 Bedroom Chicago-Style Bungalow in the Chicago Northwest Side Neighborhood of Norwood Park - UNDER CONTRACT in 5 Days, Multiple Offers, 97.7% of Asking Price (Conventionally-Sold Property)
3. Executive-Styled 4 Bedroom Townhome in the Chicago Northwest Side Neighborhood of Jefferson Park - UNDER CONTRACT in 14 Days, Seven Offers, 99.0% of Asking Price (Short Sale Property)
4. Large 1 Bedroom Condo in the Chicago North Side Neighborhood of West Ridge - UNDER CONTRACT in 3 Days, Multiple Offers, 100.9% of Asking Price (Conventionally-Sold Property)
At the same time, however, one of our Two-Unit Properties in the Albany Park Neighborhood on the North Side of Chicago, in need of considerable fix-up and upgrade, as well as one commercial listing in the South Side of Chicago in the Ashburn Neighborhood, have generated strong interest, but lack an acceptable offer.
Current Market Statistics, courtesy of The Chicago Association of Realtors, bear out our own gut feelings -
- INVENTORY FOR SALE (Single Family and Condominium) is Down, CONSIDERABLY
- UNITS CLOSED (Single Family and Condominium) is Up, SUBSTANTIALLY
- MEDIAN SALES PRICE (Same Property Categories) is Up, SLIGHTLY . . . although, in some cases, often 50% or more beneath Peak Prices during the Real Estate Boom in Chicago, ending in 2007
Here are some Chicago Citywide and Neighborhood Market Statistics, comparing data from January, 2013 to Year-Ago Data from January, 2012 (this data for Single Family Homes ONLY) -
CITY OF CHICAGO
- Homes For Sale Inventory DOWN 28.8%. Closed Sales UP 35.7%. Median Sales Price UP 2.2%
LINCOLN PARK NEIGHBORHOOD OF CHICAGO
- Homes For Sale Inventory DOWN 41.7%, Closed Sales DOWN 12.5%, Median Sales Price UP 11.3%
LAKEVIEW NEIGHBORHOOD OF CHICAGO
- Homes For Sale Inventory DOWN 50.7%, Closed Sales UP 33.3%, Median Sales Price DOWN 34.4%
JEFFERSON PARK NEIGHBORHOOD OF CHICAGO
- Homes For Sale Inventory DOWN 51.6%, Closed Sales UP 180.0%, Median Sales Price UP 4.1%
NORWOOD PARK NEIGHBORHOOD OF CHICAGO
- Homes For Sale Inventory DOWN 52.9%, Closed Sales UP 145.5%, Median Sales Price DOWN 10.7%
This Chicago Association of Realtors Interactive Map provides the latest Market Statistics for each Chicago Neighborhood
Counter to what is happening in other areas of the country, the Chicago Inventory of Distressed Homes, including Bank-Owned Foreclosures and Short Sales, remains stubbornly high. Many attribute it to the very slow Foreclosure Process in Illinois, which has always favored giving extra time to homeowners having financial difficulty trying to save their homes, using a lengthy Judicial Foreclosure Procedure.
This Lower-Priced Distressed Inventory often serves as an anchor, dragging down eventual sales price on Conventionally-Sold Properties as well. Indeed, in some Chicago Neighborhoods and many Chicago Suburbs, Distressed Properties continue to make up more than one-third of available homes for sale.
However, many are becoming a bit more optimistic about the chances for economic growth, and are less nervous about losing their jobs. Folks need a place to live, and today seem to be going after whatever Chicago Housing Inventory there is - at comparably Bargain Prices, and with very attractive Mortgage Interest Rates for Credit-Qualified Homebuyers.
So, for Homesellers, the future is looking a bit brighter here in Chicago and the Suburbs. For Buyers, although at far lower purchase price points than the Good Ole' Days . . . the race belongs to the swift!
Contact us anytime for help and advice in the Chicago Neighborhoods and Suburbs YOU are considering!
Please check out our Chicago Real Estate Blog - BlogChicagoHomes.com.
DEAN MOSS AND DEAN'S TEAM CHICAGO