Real Estate Market

 North Shore Suburban Chicago Monthly Update

Year End Results … Prices declined one percent in December to hold the year-over-year prices relatively-flat on detached single family homes which ended the year at just 2% under 2010.  Attached properties such as condos and townhomes did not fare as well with prices eroding to 11% lower than at the end of 2010 (see chart below). Inventory levels recorded in 2011 ran almost 12% lower than in 2010, an improvement that should eventually create a better balance in the market.  Additional encouraging numbers included the 2011 increase in the percentage of properties sold and closed as compared to 2010 with nearly 7% more homes closed in 2011.  Coupled with the drop in inventory levels, proportionally increasing numbers of sales provide some reason for looking ahead with cautious optimism.  Despite these modest improvements, still-falling prices are the likely result of significant numbers of distressed properties which account for roughly one-third of the homes sold.  While on the surface that substantial number may seem to be a negative market variable, the sooner these distressed properties move through the system, the sooner the market can and should improve.  With last spring’s projection of a 25-month buildup of future foreclosures and short sales and today’s increasing number of closings, the coming months could be on the down side of that hill.

This should be good news for all Sellers.  Owners faced with selling short due to owing more than their homes are currently worth will likely find lien holders to be somewhat more receptive to accommodating their situation making the process less stressful and more likely to succeed.  These transactions are complicated, at best, but improvement in the skills of both real estate agents and attorneys who assist owners facing this challenge have also contributed to increased numbers of approvals and closings. 

What about prospective buyers?  Anyone looking to buy and mortgage their purchase should act sooner rather than later.  Depressed prices coupled with the lowest mortgage rates since 1949 make this a time to clearly maximize the value of your purchase dollars.  Affordability is at an all-time high.  Falling inventory levels forebode a future with better balance between supply and demand, so acting today makes sense if you are able and ready.   Should you be interested in how this could benefit you considering your specific criteria and situation, I am available to consult with and review your unique circumstances.

Sellers thinking about selling may want the latest update for their community.  I can generate reports tailored to your area, price range and the type of home you currently own.  Sellers equipped with market knowledge focused to create a picture for their property have a clear edge over their uninformed competitors.  If I can assist you with information for your market area and home, feel free to email a request for your overview to allyson@allyson.com.  I can provide this information for homes located in Chicago’s North Shore, North or Northwest Suburbs or anywhere in the Chicago metro area.

Here’s your statistical North Shore summary snapshot for the end of 2011:

• Market times for both attached and detached homes ended the year averaging 9-10 less days on the market as compared to 2010
• Weeks required to sell current inventory dropped back to the levels slightly lower than those recorded in October with about a 12-week decline to nearly 46 weeks – the likely result of reduced inventory levels during the holiday season
• Likewise, the ratios of homes sold compared to homes available decreased slightly from approximately 13:1 at the end of November to slightly lower than October’s recorded 11:1
• The percentage of the numbers homes sold in distress again increased ending the year with nearly 29% of homes that closed in December being either a short sale or foreclosure
• New listings and listings back on the market ended the year at between 7.5-8% fewer than in 2010 meaning inventory levels in 2011 were overall lower than in 2010
• Closed sales, in numbers, slightly edged out totals for 2010, but when factoring in the lower 2011 inventory, the year ended nearly 7% ahead of 2010 
• For the fifth consecutive month, pending sales remain down from 2010 ending the year at about 8.5% lower -- a possible offset to this decline is a slight increase in the numbers of new contracts over 2010
• Properties that having gone off market without selling ended the year substantially lower by 14.5% as compared to 2010
• The numbers of homes requiring price adjustments was 10.8% higher in 2010 than in 2011, the likely result of 2011 sellers accepting and initially marketing property at more market-appropriate asking prices.

Buying or Selling a Distressed Property?  Nearly one out of every three homes that closed in the North Shore Suburbs in December 2011 was either a foreclosed home or a short sale.  These properties should be reviewed on a case-by-case basis.  Some will be in very good condition; some will not.  Almost all of them will be competitively priced.   Increasing numbers of these sales in proportion to non-distressed sales means that there are more of them to choose from and more are selling within shorter timeframes.  Even short sales with notoriously-long and difficult timetables are moving more efficiently than in the past, a welcome improvement for both prospective buyers and motivated sellers.  Good buys are subjective and must take into consideration the needs of a specific buyer to make that determination; likewise, sensible sales must consider each seller’s unique circumstances.  So it is essential to have skilled and knowledgeable professionals on your team to minimize stress and maximize the financial aspects of any distress sale or purchase. 

As a Short Sale Foreclosure Resource (SFR) certified agent, I can assist in answering questions or suggesting solutions to both buyers considering a distress property purchase or sellers finding themselves in potentially distressed sale situations.   Please feel free to call or email allyson@allyson.com for additional information.

Welcome to 2012 – may this be a good year for all!

 
*This representation is based in whole or in part on data supplied by various Participants in the MREDLLC for the period 1/1/11 through 12/31/11. MREDLLC does not guarantee nor is it in any way responsible for its accuracy. Data maintained by the MREDLLC may not reflect all real estate activity in the market. 

If you are considering buying or selling or, alternately, if you are just interested in the property value of your home or a home that interests you, please feel free to send an email request to me at allyson@allyson.com and I will gladly arrange to meet with you and/or set up a personalized webpage with data designed specifically for your home, a home that interests you or for a personalized new home search profile that matches your unique criteria.