Market Conditions: June Sales Pop 12.5% As Median Price Rose Again
How hot was the Chicago housing market in June?
From the IAR:
The city of Chicago saw a 12.5 percent year-over-year home sales increase in June 2013 with 2,623 sales, up from 2,332 in June 2012.
The median price of a home in the city of Chicago in June 2013 was $254,900 up 17.5 percent compared to June 2012 when it was $217,000. Chicago condo prices also saw double-digit gains for the month, posting a 14.5 percent jump to $286,750. Average time on market in the city was 51 days, down 32.9 percent compared to 76 days last June.
Here is the prior sales data (thanks to G for the older historical data):
- June 2013: 2623 sales- up 12.5%
- June 2012: 2246 – up 22%
- June 2011: 1841- down 27.1% yoy
- June 2010: 2526 sales (tax credit sales)
- June 2009: 1981 sales
- June 2008: 2282 sales
- June 2007: 3,127 sales
- June 2006: 3,557 sales
- June 2005: 3,850 sales
- June 2004: 3,752 sales
- June 2003: 2,891 sales
- June 2002: 2,590 sales
- June 2001: 2,451 sales
- June 2000: 2,513 sales
- June 1999: 2,435 sales
- June 1998: 2,214 sales
- June 1997: 1,817 sales
Here is the monthly median price data:
- June 2013: $254,900- up 17.5%
- June 2012: $216,700- up 4.7%
- June 2011: $207,000- down 11.6% yoy
- June 2010: $234,250
- June 2009: $242,050
- June 2008: $309,945
“Chicago home sales continue to trend in the right direction, now to the point that they are pushing the whole market and bringing activity to some of our lower-performing neighborhoods as inventory thins city-wide,” said REALTOR® Zeke Morris, president of the Chicago Association of REALTORS® and Operating Principal and Managing Broker, Keller Williams Realty, CCG. “We are encouraged that lower inventory will prompt more sellers to enter the market. For both buyers and sellers, the time is right to get involved.”
“The rising house prices suggest some significant movements towards a more stable housing market,” noted Geoffrey J.D. Hewings, Director of the Regional Economics Applications Laboratory of the University of Illinois. “New analysis of the foreclosure process suggests that a return to pre-recession levels could occur early next year, further enhancing the housing recovery. Rising interest rates appear not to be dampening demand and continued upward pressure on rental prices is clearly encouraging more potential buyers into the market.”
This is the first month where rising mortgage rates were recorded but most buyers in June would have locked in at the previously lower rates.
The 30-year fixed mortgage average was 4.09% in June, up from 3.55% in May and also up from 3.67% last June.
Is Dr. Hewings right that higher mortgage rates are being shrugged off?
Or is it too early to tell?
Illinois marks two years of sales gains; sales surge 14.9 percent with strong median price gains in June [Illinois Association of Realtors, Press Release, July 22, 2013]
Higher mortgage rates are not being shrugged off as the Existing home sales number is showing a “surprise” decline today… lol morons
But then again, why buy a used house when you can buy a new one for not that much more, especially when rates are/were so low?
“Is Dr. Hewings right that higher mortgage rates are being shrugged off?”
He’s not even right about this:
“The rising house prices suggest some significant movements towards a more stable housing market,” because that’s all about a change in product mix.
or this:
“New analysis of the foreclosure process suggests that a return to pre-recession levels could occur early next year”, because we the (right now) delinquency rate is still much higher than it was pre-recession.
“The 30-year fixed mortgage average was 4.09% in June, up from 3.55% in May and also up from 3.67% last June.”
“Is Dr. Hewings right that higher mortgage rates are being shrugged off?”
Higher? Well, I guess 0.01 IS higher than 0.00.
Sales tax is also on the upswing. Young Keynesians on Michigan Avenue are encouraging tourists to pick up a new I-Phone with every visit to Chicago.
1 1/2 left in Steams summer sale and you guys are focused on i rates?? Totally warped…
Some consumers are spending more money because they’re making more money. Overall consumer credit figures are rising only because of cars and student loans; credit cards have recently shot up but it’s nowhere near peak figures. The fact of the matter is that many of those who survived the recession are now thriving, while many of those who were wiped out by the recession failed to recover. I know my firm change has resulted in a large and not-insubstantial increase and income; and my spending has increased; not necessary on retail, but my spending overhead sewers and other home repairs this years has been significant.
“Steams summer sale ”
anything good?
“anything good?”
Hard to get games down here so i picked up 14..during their sale it is like buying games for free.. Think I played 40 hours of civ 5 in just the last 3 days…
Bioshock Infinite
Crysis
Dishonored
Deus Ex
Rome:Total War
Portal 2
XCOM
Torchlight 2
World of Goo
Dust:Elysian
Tomb Raider
Braid
Far Cry 3
Some old .. some new… all together probably less than $100.. that’s about the price of 1 new X-Box game down here.. already had a bunch.. but things like new Batman for under $10.. just awesome! Now in August, when I return to the States, I need my new video card!!!!
Ze, ru sure your not some unemployed recent grad living in your parents basement?
We closed on June 24 at a 3.625% rate with our rate being locked in at the end of May (21 or so). It takes 30-45 days to really see the effect in changes in rates because buyers had rates locked in for accepted offers well before the closing dates. The July data will show the changes in mortgage rates and the effect on the market much more. I know 2 sellers who are having a real hard time this month and are thinking about price reductions. Maybe they were priced too high to begin with, but if you listed in May you probably were able to sell quickly and at a good price. If you listed in July, it may not be as favorable of an outcome but shouldnt be too far off especially if in an area with a real shortage of inventory.
Ze, you should play borderlands 2, that game is amazing, I haven’t tried any of the ones you mentioned although dishonored is one i was interested in a long time ago and never bothered to try
I wish you didn’t have to kill animals in Far Cry 3. I really wanted to play that game until I found out you had to kill animals.
I just finished the last DLC in Borderlands 2. Awesome game! You have to kill mutants, but it’s not the same as killing cute dogs.
I agree jenny, that was the best DLC ever! Totally hilarious
Look at the contract activity. It’s still going strong and the % distressed sales is dropping: http://www.chicagonow.com/getting-real/2013/07/june-chicago-home-sales-2-years-of-continuous-improvement/
“Ze, ru sure your not some unemployed recent grad living in your parents basement?”
Olic, I never could have made it through grad school and my parents don’t have a basement.. but we re-did the laundry room up nice-nice for me 🙂 And yes, very unemployed! Now if you’ll excuse me, I need to go to the gym before it gets crowded with the after work crowd…
“Ze, you should play borderlands 2, that game is amazing”
They had that for sale today at 75% off, I think. I already have it in XBOX, and agree it is a great game, and I’m not a big fan of shooter games – prefer puzzle/strategy… but I am totally against the new XBox, so switching now to PC games (quality soooo much better anyway.. with the right card).. I have Cat 6 HDTV adapters from my computer to 2 TV’s and 2 Projectors and run a Cat 6 wire to each that ends in a USB adapter which I connect a microsoft wireless controller to.. setup works nice particularly in my room with the best stereo and bong. 🙂
HDTV s/b HDMI… 🙂
Agreed, the new XBOX is just an NSA spying machine with an always on camera and internet connection peering into my home. What could go wrong there? ? ? And they keep pushing the TV experience. I like most people of my age cohort and younger are watching less and less tv, and I try to focus my watching experiences on the ‘good’ comedies and dramas (dexter, GoT, etc); look at the cable TV ratings and only a handful of the top 100 shows can even muster a .8 rating in the desirable 18-49 category. my Smart TV can handle virtually any file type I throw at it and the remote works well too. Which is too bad that I’m officially over consoles, I’ve been playing console games since I was 3 years old with my older brother’s Atari 2600, and my final console will be my current XBOX. I may switch to computer games, but again, I just need to find the right D&D computer game….
I stick to console games mostly because when I get home from work, the last thing I want to do is stare at a computer again. I haven’t seen a TV yet that can make PC games look as good as they do on a high resolution monitor. Plus, PC games aren’t designed so that you can sit many feet away and still be able to read various textual parts of the games.
I pre-ordered the PS4. I’ve never carried for the Xbox.
The bls just released new job figures for Chicago metro. Up over 60,000 yoy or 1.6%.
jenny are you a vegetarian?
I’m mostly vegetarian, but not extreme in that I’ll eat things like chicken broth soup and jello. As long as it doesn’t look in any way like muscle/skin tissue, I will eat it. Why?
PC is and will always be the best for games, and totally agree HD, why the hell anyone would voluntarily buy that thing and put it in their home is frickin nuts.
As for playing on a large screen, thats what HDMI cords are for, and my PC displays perfect 1080p (even sometimes 3d) at a much higher framerate at a higher resolution than any console could dream of doing, and you can always hook up a console controller to your PC as well
But anyway, 60,000 jobs is great, but what about the 209,000 additional Illinois residents now on SNAP in the last year?
” Why?”
I have a fairly good friend almost exactly like your online persona, so similar, in fact, I’d almost swear you are her. Except she didn’t go to Lab or Latin where ever you went, and she won’t eat chicken broth.
” I just need to find the right D&D computer game…”
…and all this time I thought you were a Farmville guy… I never played it, but people seem to suggest Baldurs Gate series for the D+D… it just amazes me how many people our age still play video games.. I had stopped for many years thinking I was too old for it.. Silly me… and thanks for reminding me about Dexter, I forgot it was Monday.. off to Isohunt to download it..
I’ve got Baldur’s gate on the ipad, I play that pretty regularly, but for teh computer games, damn, there’s just no time. At my new job I extraordinary freedom and I have a pretty high end computer. I installed half=life with the half-life 2 engine and I thought I’d have the time to play it, but nope, it’s been a year and I’ve only loaded it up once, and that’s the time I loaded it on the computer a year ago. Which I guess is a good thing, I’d have other problems if I sat around the office playing computer games. The only guys I know who do that are the soliders who protect the missile silos out west….I know one of those guys and he said he played call of duty over the crazy gigabyte (or higher) LAN, 8 hours a day, 5 days a week, as he protected the missile silos, which quite frankly, will probably never actually be used in our lifetime.
The game that I am most looking forward to is called ‘Watch Dogs’ its an open world game with a pretty cool hacker/action premise based in Chicago! Check out the videos on it, it looks like its going to be a huge smash hit. Won’t be out till November though, so plenty of time to enjoy the nice weather before then 🙂
I’m really excited about Watch Dogs! It’s one of the few fun things to look forward to this fall.
“I’m really excited about Watch Dogs! It’s one of the few fun things to look forward to this fall.”
Rome II… and 1 person seems not to be liking the first normal, off-topic, conversation in CC in quite some time.
“I’m really excited about Watch Dogs! It’s one of the few fun things to look forward to this fall.”
Rome II… and 1 person seems not to be liking the first normal, off-topic, conversation in CC in quite some time.
I wonder how well Chicago will “shrug off” a doubling of property taxes in our very near future.
” doubling of property taxes in our very near future”
1. Ain’t gonna happen
2. Ain’t gonna happen
3. To the extent that anything like that happens, it’s a doubling of about 30% of the total tax levy, so a less than 1/3 increase, not a ‘doubling of taxes’. Which *still* ain’t gonna happen.
What happened to the second posting for today? 🙂
Hey, I hope it doesn’t happen, I just bought a house in Bridgeport. But I’ve seen it mentioned more than once in the few articles out there on the neglected story of the City’s dismal finances. Are the democrat union whores gonna tell them no? Rarely do I ever see them do the right thing.
“But I’ve seen it mentioned more than once in the few articles out there on the neglected story of the City’s dismal finances”
Yes, and every one of those articles glosses over or ignores the fact that the city’s portion of the property tax bill is …[checking bill due soon]… 18% of the total bill. So, even if the city portion did double (ain’t gonna happen), property tax bills would go up 18%, not 100%.
“What happened to the second posting for today?”
I had family issues to take care of and didn’t have time to do one.
How do you know the market is recovering quickly? All the nerds on this board are discussing video games instead of market fundamentals. Good stuff!
“Wow, lol … what every happened to talking about real estate? I never knew that CC had so many losers who waste their time with video games.”
yeah, better to be someone who wastes their time on their computer trying to change IP addresses and sign onto CC… putz!
jenny, in Far Cry 3, you’ll want to kill most of the hyper-aggressive animals that sneak up behind you and interrupt your sneaking up behind pirates/mercenaries after you play it for a bit. And approach the giant tortoises so that they hide in their shells (no reward for killing them). That being said, somebody should make some sort of nature photography mod for the PC version.
Since my PC is a 4 year old gaming laptop, half of my PC summer sale purchases have been older games that I never got around to playing, with the exception of The Witcher 2 and Total War: Shogun 2. Older sale games I nabbed include Knights of the Old Republic 2, Baldur’s Gate, and Arcanum (from GOG). I got Saint’s Row the Third for my girlfriend (who has a new Lenovo gaming laptop) since she enjoyed causing general mayhem in GTA4 more than playing through the plot missions.
I’ll either buy a new gaming laptop later this year or I’ll save money and get a desktop; I’d probably have to make it a home theater PC hooked up to my TV until I get a bigger place with room for a proper desktop setup. And a tortoise.
“How do you know the market is recovering quickly? All the nerds on this board are discussing video games instead of market fundamentals.”
Yeah.. so a trader spending 10 hours a day staring at a wall of computer screens, day in and day out, looking at market fundamentals is commendable.. spending 3 hours a day commuting to go do it, all the better… sad…very sad…
“How do you know the market is recovering quickly? All the nerds on this board are discussing video games instead of market fundamentals. Good stuff!”
Sorry to burst your bubble Steve- but we’ve been talking about topics other than real estate on this site for almost 6 years- yeah- even when the market fundamentals sucked.
But you haven’t been around most of that time to notice.
I’m playing “Remember Me” now. It’s not as fun as I thought it would be, but still entertaining.
How did I not know about the summer sale!? Need to check it out ASAP. I’m still a faithful CSS player. I enjoy the quick skirmishes against other players. When I have an hour to kill, I can quickly log on, play a map or two, and call it quits. Not much of a commitment.
“Yeah.. so a trader spending 10 hours a day staring at a wall of computer screens, day in and day out, looking at market fundamentals is commendable.. spending 3 hours a day commuting to go do it, all the better… sad…very sad…”
Well they traders I know make pretty good money and the videogammers, well they live in the parents basement. LOL
“Well they traders I know make pretty good money and the videogammers, well they live in the parents basement. LOL”
Odd, about 95% of the people I know that “tried” being traders wound up in their parents basement… Remember that whole day-trader craze in the late 90’s?
…and once again, Olic.. my parents have no basement!!!!!
LOL, Ze….. well in your case its the laundry room or maybe the garage.
We my trading friends work for real companies, not trading a couple grand from their parents basement or laundry room.
A cousin of a friend of mine made $70k in World of Warcraft doing something or another with trading rare items his “group” found. When his group found out, he was kicked off World of Warcraft, but he got to keep the money. Now, he’s basically a bum, but money can be made in video games I suppose.
Luv Jenny she has the funniest stories.
“LOL, Ze….. well in your case its the laundry room or maybe the garage.”
Olic, my favorite commercial of all time. It was like the drinking game Mexican.. every time it came on TV we had to pack a round of bowls… http://www.youtube.com/watch?v=fy_knXF_G6c
for some reason I always remembered this one too.. haven’t seen it in 20+ years but now seeing it again I remember why it remained in my mind.. http://www.youtube.com/watch?v=u-TmrUD9dpk
Exactly Pjay, the only persons qualified to give RE advice are Realtors and Real Estate Professionals who will tell you that its always a good time to buy.
HD.. be nice.. Pjay is new here… I agree with him anyway, why take advice on anything from the geeky smart people. That’s why I invested everything with Lenny Dykstra… For my attorney I use Colin Ferguson.
“HD.. be nice.. Pjay is new here…”
No he’s not. It’s Dan. Can’t you tell when he used the word “masturbators”?
“No he’s not. It’s Dan. Can’t you tell when he used the word “masturbators”?”
I kinda figured it out… 🙂 I think all of us seem to pick up on Dan right away. Well almost all of us, when “new” Dan starts off with his architectural comments, annony takes a while… Always funny seeing him talk to “new” Dan when he ignores most of the rest of us..
Just posted my July market update with historical trends: http://www.chicagonow.com/getting-real/2013/08/july-chicago-home-sales-highest-level-in-seven-years/
Another incredible month with only the slightest indication of any slowing. July sales were up 35.3% over last year. Check out the inventory levels and the market times. Pretty incredible and definitely a seller’s market. You’ll also notice a continued decline in distressed sales.
Thanks Gary. From the sources I have in the residential appraisal and home inspection businesses, it sounds like there may be a slight slow down. Is this normal for this time of year?
If you look at my second graph you’ll see how contract volume always declines starting in July. But the inspectors still seem to be pretty busy.
“Thanks Gary. From the sources I have in the residential appraisal and home inspection businesses, it sounds like there may be a slight slow down. Is this normal for this time of year?”
Interest rates are up a percentage point. All the homebuilders have said they’ve seen some slowing. The resale market will slow too. It’s normal to see some slowdown in July and August, however. But you really have to compare year over year to get the clear picture.
And year over year contract activity in July was up about 17%, which is not bad.