Say it isn’t so! Well it is:) According to the Illinois Association of Realtors, the Cook County year to date sales in June of 2009 were 16,101 homes sold. That same figure through June of this year is 22,109 for whopping 37.7% increase in sales this year! Now don’t get too excited, we had a few contributing factors that really created the increase, or should I say last years decrease. The first half of 2009 was arguably the lowest point in American consumer confidence since The Depression. Consumers were not buying homes, car, or clothes. The net effect of such a dramatic decrease in spending helped create a back log of potential buyers that spilled into the 2010 market. In addition, the homebuyer tax credit that expired this spring had a significant impact on the market. Let’s face it – if you weren’t fired by end of first qurter 2010, then chances are decent that you may be spared. As these jobs became more secure, buyers began to grow confidence. The thought of purchasing began to appeal to consumers once again. Also assisting was the tax credit timeline. Buyers had to be under contract by April 30th 2010. This created a sense of urgency long gone from the real estate market.
I know what you’re thinking – prices are going up! Not exactly. We still have a significant amount of inventory and there simply is no quick fix for that. An optomistic jobs market will eventually stabilize real estate. In regards to inventory, by most accounts it has been declining. These numbers however are based on actual market data. The reality is that many sellers have remained on the sidelines waiting for a recovery in price before selling. In fact, many can not sell today due to the fact that they would have to bring money to the table to close. With interest rates at near 40 year lows, many hokes to choose from, low prices, and growing consumer confidence it appears that the worse is over. While I don’t see the “boomerang effect” coming anytime soon (a sudden increase in demand therefor price) it does appear logical that we are headed for a slow but sustained recovery. Sellers – sorry, I don’t see prices going up by any measureable amount in the near future. Buyers – someday you’ll probably look back and say “what a deal”!
Posted by michaelhulett in Loft Buyers, Loft SellersWednesday, 31 March 2010 20:49No Comments
This is not a typo, or a re-tweet circa 2005. We’ve noticed an odd phenomenon this spring… multiple offers. There’s a trend developing here and it actually makes perfect sense. The formula is as simple as the perfect storm: the buyer pool is slowing increasing + buyers are tiring quickly of distressed properties and their associated problems + the number of desirable properties that are priced aggressively is limited. Hence multple offers on quality homes. Here’s what they all have in common:
A.) Neighborhoods that have steady traffic. Let’s face it, some neighorhoods have faired much better than other during the fall. Frankly we were a little surprised to be involed in 2 multiple offers in Rogers Park alone over the past 3 weeks.
B.) Pricing that is very competitive given the immediate comparable properties. This offers immediate value and if there is ONE thing today’s buyers respond to, it’s value.
C.) Properties that show very well. It’s always been one of two critial elements for every seller (the other being price). In today’s market, how a home shows is more important than ever.
Of course, I wouldn’t exactly call it a HOT market right now but these are certainly signs that the industry, and perhaps economy, are moving in the right direction. My advice still hasn’t changed… If you’re selling – price and show on the mark. If you’re buying - look for the place you love and negotiate hard to get the best deal you can. Happy house hunting!!
