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CHICAGO REAL ESTATE STATS PACK - NOVEMBER 5, 2007

Good Morning, Everyone!

 

I spotted an article in yesterday's Chicago Tribune by Reporter Marilyn Kennedy Melia addressing the current "Buyer's Market," and how it's not always easy going for buyers these days.

When the housing market was stronger, just a couple of years ago, virtually any potential home buyer, regardless of financial credentials, could secure some form of financing.  Today, however, with the credit markets in disarray, and foreclosures on the national level rising by the day, lenders are far more particular to whom they lend money.  Very often, lenders ask for additional documentation from the buyer even right before the closing - to verify income, employment, and financial condition.

Buyer's should expect additional scrutiny when proceeding to closing on their new home, and should seek advice and counsel from their Real Estate Professional and their Attorney to guide them through this process.

Here's a look at our Chicago Real Estate Stats Pack for Monday Morning, November 5, 2007.    We cover single-family, small-multi family, and condos in Downtown Chicago and the entire Chicago area.

SINGLE FAMILY, CONDOS, AND SMALL MULTI-UNIT PROPERTIES - NORTH SIDE OF CHICAGO, NORTH OF ADDISON STREET, WEST OF ASHLAND AVENUE

                             ACTV LISTINGS        JUST SOLD         CLOSED        EXPIRED

w/e November 4th           1,137                     41                   105                194

w/e October 28th             1,133                     46                     62                 74

% CHANGE                       +0.4%                 -10.9%            +69.4%           +162.2%

CLOSED PROPERTIES DATA

                              AVG SALE PRICE              AVG DAYS ON MKT         TOTAL VOLUME   

w/e November 4th        $332,877                           137 DAYS                            $34,952,150

w/e October 28th          $367,088                           124 DAYS                            $22,759,500

% CHANGE                    -9.3%                                    +10.5%                               +53.6%

SOURCE:  MLSNI, AREA MARKET SURVEY DATA

OBSERVATIONS

On the top line far right - the figure in the last column is very relevant!  Expired Listings on Thursday, November 1st were the highest our Team has seen in over five years on the first day of any month - over 100 Single Family, Condominium, and Small Multi-Family Properties had their listings expire on that day.  Many buyers may have grown weary of the correcting market, and have elected not to renew their listings with their current Real Estate Practitioners, or reduce their price.  Others quickly relisted, but with new agents, and at a considerably lower price.  Dean's Team was retained by three such clients within the past two weeks. 

While Active Listings held steady, and New Contract Pending (Just Sold) listings decreased slightly, the strong jump in Sales Closed at the end of October suggests there was a bit of an upward bubble in the purchase market 20-45 days ago.  Closer examination reveals that those who did sell settled, on average, for 11.6% less than their asking price.  This is far higher that the average 5.4% average negotiated reduction this time in 2006.  Indeed, many buyers are finding far better deals when they buy than even one year ago!  Our personal experience, within Dean's Team, seems to  back this finding.

The comparison in Average Sales Price for this week, versus last week, helps illustrate the difference.  Note that actual Sales Properties of individual properties do not become public until immediately after listed properties close and sell.   Consumers can get the same information from the County Recorder of Deeds Office, or in their local newspaper, several weeks after the closings.

Sales Volume increased considerably as is typical for the end of the month, and the weekly average will most likely fall off between now and the end of the year.  Again, typical for the holiday season.
 

RATE AND MARKET CHECK

Freddie Mac data released November 1 indicates the average 30-Year Fixed Rate Mortgages fell to a six-month low - an average of 6.26%, down 0.7% from last week's level of 6.33%.  The last time rates were this low was the week ending May 17, 2007, when 6.21% was the average 30-year fixed rate.  Rates averaged 6.31% this time in 2006.

Frank Nothaft, Vice President and Chief Economist for Freddie Mac,  attributed the drop to the fall in the U.S. Consumer Confidence Index, which fell to it's lowest level since October, 2005 . "Continued market concerns about weaker economic growth and further declines in the housing market have kept mortgage rates low over the last few weeks."

"Although the third quarter gain in real gross domestic product (GDP) of 3.9 percent was stronger than market forecasts, the housing market has subtracted from GDP growth over the past twenty-one months ending in September. In its most recent policy announcement, the Federal Open Market Committee (FOMC) noted that the rate of expansion in the economy will most likely slow in the near term, due in part to a reflection of the intensity of the housing correction," explained Nothaft.

For daily news, hot information, and trends, view our Real Estate Update newsletter.  Also, visit our National Real Estate News link, via our Web Center - dean-team.com.

If you'd like us to customize current market trends for your home, investment property, or situation, just let us know!

DEAN MOSS

Fearless Leader, Dean's Team . . . serving Downtown CHICAGO, All Chicago Suburbs . . . and YOU!

Posted: Sunday, November 04, 2007 7:02 PM by Dean's Team

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