Market Conditions: Chicago May Sales and Median Price Continue to Plunge Year Over Year
It’s that time of the month again, where we get the sales update on the Chicago market.
According to the Illinois Association of Realtors, May sales continued their year over year slide. Median price also plunged.
In the city of Chicago, May total home sales (single-family and condominiums) were up 11.5 percent to 1,537 sales compared to April 2009 sales of 1,378; sales were down 27.5 percent from 2,119 homes sold in May 2008.
The city of Chicago median price increased 2.3 percent to $225,000 in May compared to $220,000 in April 2009; it was down 29.5 percent from $319,000 a year ago in May 2008.
Is the 29.5% year over year median price decline the largest Chicago has ever seen? No one at the IAR or the Chicago Association of Realtors is saying.
“We’re encouraged to see the bank-owned inventory moving in the marketplace, indicating buyers are finding good bargains, especially in single family homes and flats,” said David Hanna, president of the Chicago Association of REALTORS®.
“The city of Chicago condominium sales numbers continue to reflect a critical need for governmental agencies to review the growing disparity in the ability to finance a condominium purchase in the city. This affordable housing will become unaffordable and unattainable to many qualified first-time homebuyers in the city of Chicago unless existing federal guidelines, which do not take into account nuances of the local market, are modified.”
Illinois Association of Realtors [Press Release, June 23, 2009]
Yeah, love the headline “Illinois Market Gets Moving with May Home Sales Up 19.3 Percent from April”, ignoring the fact that this is normal seasonality and the YOY numbers are down. Actually, I follow the Chicago PMSA sales rate (see second chart at http://blog.lucidrealty.com/chicago_real_estate_statistics/) and that’s “only” down 19% from last year. Of course, it’s down 3 years in a row now.
At the bottom of that page I also have links to neighborhood inventory levels and time on market. Actually, many neighborhoods aren’t nearly as bad as I expected – except of course the near south side, which is abysmal.
Oh….and I forgot to point out as I usually do that these median price numbers are totally meaningless. Clearly the mix of sales is shifting to lower priced housing.
I’m now seeing nice SFH foreclosures in non-prime areas listed for significantly less than 2005-2007. Think of a 650+k house during the bubble now listed for 400k.
Hell, I’m seeing nice SFHs that are not foreclosures in nice neighborhoods listed below 2007 prices. In fact, I’m listing some of them. And condos – some are back to 2002 prices.
This is a good sign that people are lowering their prices. It sounds like they are embracing the concept of hopefully just breaking even.
It would be interesting to see how the downturn has affected high end, middle-tier, and lower cost homes and condos. My guess is that due to tough financing for jumbo loans, the high end is hurting disproportionately.
Gary:
I agree that the median is being skewed by the fact that more lower priced housing units are selling than the upper end (which continues to be dead.)
Also- as always- excellent sales info on your site.
Regarding the high end, stuff is still moving surprisingly well at The Heritage and 340 on the Park for instance. As recently as March a unit sold at 340 for just over $700/sq ft.
On a different point — does $300/sq ft in River North sound about right? Looking to buy in one of the newer-built buildings….just not sure if I need to relax and wait a few more months…
“does $300/sq ft in River North sound about right? Looking to buy in one of the newer-built buildings”
I’d say it depends on the building. Maybe a fine deal, maybe too much.
As long as you aren’t paying $300 a sqft for some invsco crap property, you’re probably ok in RN. I paid 285 a sqft and think I got a good deal as I could probably rent it out near the rate of my mortgage + tax&ass
Hey Sabrina – Please comment on the below.
Revive US Housing by Killing Cars and ‘Spurbs’
Huffington Post – New York,NY,USA
While it’s too early to tell, walkable cities may hold their real-estate values … Boston’s Back Bay, Portland’s Pearl District and Chicago’s Lincoln Park. …
http://www.huffingtonpost.com/john-f-wasik/revive-us-housing-by-kill_b_220316.html
I guess I am not the only one who has noticed which neighborhoods are stable.
Is that in real dollars? http://cribchatter.com/?p=7008#comment-40001
Oh G – What did they teach you in appraiser school?
Heitman…
The worst is yet to come…
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Sonies on June 24th, 2009 at 1:28 pm
As long as you aren’t paying $300 a sqft for some invsco crap property, you’re probably ok in RN. I paid 285 a sqft and think I got a good deal as I could probably rent it out near the rate of my mortgage + tax&ass
How much does your ass cost per month? O_O