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LIL' BUDDY'S BLOG - EXISTING HOME SALES TUMBLE NATIONWIDE - BUT WHAT ABOUT CHICAGO?

THE CHICAGO REAL ESTATE MARKET, AND OTHER THINGS CHICAGO, FROM THE POINT OF VIEW OF A LITTLE WHITE DOG!

Buddy Roots for the Cubs - 09-13-2007The Colorado Rockies?  The Boston Red Sox?  Rox versus Sox?

Bah, Humbug!  I'm still a Cub fan, through and through.  Hopefully, they'll bring it all home soon.  Soon, hopefully - we dogs aren't around for all that many years, you know!

Did you see the big headline in today's Wall Street Journal.- "Existing Home Prices Tumble 8%".  The article compares home re-sales in September, compared to August, 2007.  According to the National Association of Realtors, homes sales during September fell to an annual rate of 5.04 Million Homes, compared to the adjusted rate of 5.48 Million Homes in August.

The pace of home resales is the lowest since January, 1998.  According to Lawrence Yun, Senior Economist for the National Association of Realtors, "The credit freeze in August definitely impacted sales in September, particularly the jumbo [loan] side, so we have seen a large sales decline in the upper end of the market." 

The median home price, across the nation, was $211,700 last month, down 4.2% nationally since September, 2006.  The median home price in August, 2007 was $224.400 across the U.S.  Based on current inventory levels, experts project a 10.5 month supply of homes nationally in September, compared to a 9.6 month supply in August.

Freddie Mac pins the average 30 year fixed mortgage rate at 6.38% at the end of September, down nearly 0.2% from the August average of 6.57%.  (For more current mortgage rate information, updated every Monday morning, visit our weekly Chicago Stats Pack, via the Dean's Team blog, at BlogChicagoHomes.com).

But what is happening closer to home, in the Chicago Area?  Crain's Chicago Business, in today's online edition, cites a 27% dropoff in Chicago-area sales in September, 2007, versus the same period last year.   Acording to the Illinois Association of Realtors, in the nine-county Chicagoland Primary Metropolitan Statistical Area, 6,794 homes were sold last September.  In September of last year, 9,307 home sales were closed.

Bringing the numbers down to an even smaller, neighborhood level, in the North Side Chicago Neighborhoods most serviced by Dean's Team - in the City of Chicago, north of Addison Street, and west of Ashland Avenue, combined sales of Detached and Attached Homes (Single-Family Houses and Condos/Townhouses) fell 19.5% between the Thrid Quarter, 2006, and today. 

Current Absorbtion Rate, or the estimated time it would take to sell all available inventory at current rate of sale, is far higher than the national average; it would take 12.72 months to clear existing inventory - up over 36% from year-ago levels! (All Data from the Multiple Listing Service of Northern Illinois Area Market Survey Data).

What does all this mean to the average dog walking the street? 

Houses, condos, and investment properties are selling in the Chicago area, and in the City of Chicago, but at a far lower pace than in the past few years, when the market was considerably stronger. Dean's Team consultants - Team Leader Dean, Sue, Kathy, Iwona, and Jeff - all agree that the right price is key to a quick sale, more than ever before.  Properties have to be shown, or "staged" properly, to generate strong offers.  "This correction is deeper than one seen around Chicago for many years," says Dean Moss, Team Leader.

Even taking all this into account, however, sales have very much slowed all around town - city and suburbs.  Prepare for a long market time, with lower buyer's offers, and requests for repair or sales concessions.  "It's better to price right, generate offers, and, if necessary, counter-offer them high or reject them, rather than seeing no offers on your property at all," says Moss.

"Having Patience" is tough for a dog, especially when it is time to head out for a walk, you know.  But I guess I'll just have to adjust, for a while.

EDITOR'S NOTE:  Iwona's yummy recipe will appear in her "In The Kitchen" blog tomorrow.  She is out today, learning tips on how to better stage our client's houses, to make them sell faster, and for the most possible money.  I'll be back on Friday, November 3rd.

Congratulations to Dean's Team Member's Iwona, Sue, and Kathy on their NEW Accredited Staging Professional designations!

YOUR ACE REPORTER ON FOUR PAWS,

BUDDY HOLLY MOSS

Posted: Wednesday, October 24, 2007 2:08 PM by Dean's Team
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Comments

BlogChicagoHomes.com said:

Good Morning, Everyone! In their October 24th edition, Crains Chicago Business cited a 27% drop off in

# October 28, 2007 10:31 PM

BlogChicagoHomes.com said:

THE CHICAGO IL REAL ESTATE MARKET, AND OTHER THINGS CHICAGO, FROM THE POINT OF VIEW OF A LITTLE WHITE

# November 1, 2007 9:11 PM
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