More Details on Chicagoland’s 34% January Sales Plunge
The Chicago Tribune has more details on the 34% drop in sales in January in the 9-county Chicagoland area. It was the worst plunge since January 1998.
Here’s some info on prices per county:
The Illinois Realtors report said that in the Chicago area prices fell the most in McHenry County, where the median was down 9.6 percent, to $194,500 from $215,250 a year earlier. In second and third place in the region were Lake and DuPage Counties, which year-over-year saw prices drop 9.4 percent and 8.2 percent, respectively.
On the upside, Grundy County prices rose 8.6 percent. Cook’s and Kendall’s grew by less than 1 percent.
The article discusses how many sellers are still clinging to outdated prices, which is why inventory is increasing:
“I do think there’s a stubbornness there, particularly in high-priced markets like Chicago,” said Caroline Sallee, an economist for Anderson Economic Group in East Lansing, Mich., who studies Midwest housing. “People aren’t coming down on the price, so the home doesn’t sell and you continue to see inventory [of homes for sale] rise.”
Linda Rizzuto, for one, said she isn’t inclined to come down from the $444,900 she’s asking for the Northwest Side home where she has lived 17 years, though not one would-be buyer has looked at it since she listed it in January.
“My friends think I’m crazy for putting the house up for sale now because the market is bad,” she said. “If I had to sell, I would be panicking, but I don’t have to sell.”
She doesn’t have to sell? Then why is it on the market? What a waste of time.
Since inflation last year (Jan to Jan) was 4.3% according to the Consumer Price Index, the fact that housing increased less than 1% in Cook County means that in real terms, the median price of homes in Cook *decreased* by about 3.5%.
I’m starting to get VERY gloomy about the prospects for our economy this year… And I hope it only lasts a year.
Kenworthy,
You’re still ahead of the majority of people, so take comfort in the fact that you can prepare for the tough times ahead without a lot of competition. Once the majority of Americans realize how bad it’s going to get, it’s going to be a lot more difficult to procure the things you need.
By the way, how many people have noticed that the FDIC is bulking up? The WSJ recently ran an article suggesting that they are merely trying to get 25 people out of retirement, but the truth is that they’ve already pulled more than 70 people out of retirement and are constantly putting out bids for contractors. It’s becoming clear that the FDIC is preparing for massive bank failures in 2008, connect the dots and figure out why!
Invest when there is blood in the streets…
Quick Question, is there a place on the web that can search for foreclosures that are on the MLS? Can’t seem to find a site that we let me do that. Thanks.
Don’t be silly, Tipster. Now is a great time to buy, because real estate always goes up, and they ain’t making any more Chicago!
http://chicagorealestatedaily.com/cgi-bin/news.pl?id=28325
Here, by the way, is the “stubborn seller”‘s listing, in Irving Park. 3BR/1.1BA SFH, mls #06762762:
http://www.rubloff.com/search/details.html?ulb=true&id=06762762
Is it worth $444,900?
Home prices in Chicago declined 4.5% in 2007 according to the C-S Index. Natinoally the decline was 8.9% with double digit declines in the former hot markets and those with a poor economy (which may be all of U.S. in 2008!). Why buy a debt-trap now? You can easily rent from a floplord (a failed flipper who is forced into being a landlord). Miami had the biggest decline of 17.5%! There goes the equity deposit if there wasn’t 100%+ financing.
http://www.usatoday.com/money/economy/housing/2008-02-26-foreclosure-rates_N.htm
She doesn’t have to sell? Then why is it on the market? What a waste of time.
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Hey Moderator, I found Linda’s MLS#. Let me know if you want me to post it. I don’t want to jam u up.
dang, guess I should read before I post…….
Kenworthey,
That’s pretty funny. Either Zell has lost his marbles or he’s trying to find a sucker for Equity Residential. If you ask me, it’s the latter. Residential rental construction is going crazy right now. I doubt the profit outlook for a large portfolio of apartment buildings is looking very good.
Tipster,
Not much of a coincidence, but I thought exactly what you did about Zell’s comment. I think the “grave dancer” forgot about the ‘sell high’ portion of his mantra. Oops.
No need to shed a tear for Mr. Zell as he did manage to unload Equity Office Properties in a timely manner last year. Of course, it didn’t work out so well for his buyers, especially Harry Macklowe in NYC. His knife-catching will cost him the GM Building in NY since his creditors would not refinance his debt for the Equity properties he acquired (see http://newsfeedresearcher.com/data/articles_b7/idb2008.02.16.01.10.29.html).
I think Zell will have to do a lot more convincing before he finds a buyer for Equity Residential that is willing to risk Macklowe-cide.