CHICAGO REAL ESTATE STATS PACK - January 21, 2008
Good Morning, Everyone!
Inflation increased at an annualized rate of 4.1% in 2007, and 0.3% for the month of December, 2007 - the highest projected annual increase since 1990. Despite this heightened threat of inflation, however, Fed Chairman Ben Bernanke still contemplates "substantive" interest rate reductions to spur economic growth, and re-ignite the stalled housing market nationwide. Click on our post on BlogChicagoHomes.com for some thoughts and comments, and relevant links.
Here is a look at our Chicago Real Estate Stats Pack for, Monday Morning, January 21, 2008. We cover single-family, small-multi family, and condos in Downtown Chicago and the entire Chicago IL area.
Note that we have added TWO NEW CHICAGO IL REAL ESTATE STATISTICS to our summary this week - (1) the average "Absorption Rate," or time it takes to clear existing inventory in the area we serve, and (2) the Percentage of Homes that are expected to sell within a 180 day marketing time frame. In future postings, we will draw comparisons between current and prior-week numbers
Communities and clients we serve reside, or plan to reside, in the Chicago Neighborhoods of The Chicago Loop, The Gold Coast, River North, Lincoln Park, Lakeview, Uptown, Edgewater, North Center, Lincoln Square, Albany Park, Ravenswood, Wicker Park, and Bucktown.
Also, these Great Chicago Neighborhoods: Logan Square, Rogers Park , West Ridge, Portage Park, Jefferson Park, Norwood Park, Sauganash, Edgebrook, and Edison Park. Plus All Chicago Suburbs.
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 January 20th 4,200 45 38 70
w/e January 13th 4,186 28 34 42
% CHANGE +0.3% +60.7% +11.8% +66.7%
CLOSED PROPERTIES DATA
AVG SALE PRICE AVG DAYS ON MKT TOTAL VOLUME
w/e January 20th $352,377 134 DAYS $13,390,350
w/e January 13th $350,460 157 DAYS $11,915,665
% CHANGE +0.5% -14.6% +12.4%
THEORETICAL TIME TO CLEAR EXISTING INVENTORY (ABSORPTION RATE) -
LAST 12 MOS - 11.35 LAST 6 MOS - 18.37 LAST 3 MOS - 32.23
PERCENT OF HOMES SELLING IN 180 DAYS - 31.45% (UNSOLD - 68.55%)
SOURCE: MLSNI, AREA MARKET SURVEY DATA
OBSERVATIONS
In order of my concern: Sales Volume increase predictable as we approach the end of the month. Average Market Time has moderated a bit - let's see if the trend continues in coming weeks. Active Listings have not increased as much as I would have predicted - some sellers are still holding back on their selling plans as they gauge the market. The Average Sales Price and Number of Closed Listings fairly stable from last week (low pending numbers in total).
This week, we have added Absorption Rate and Percentage of Sale Within Six Month (180 Days) figures - both point up the high level of inventory available for sale on the North Side of Chicago - nearly triple year-ago figures (balanced market, per experts, is six months supply). Percentage of Selling in 180 days figures reflects high average market times in our area.
RATE AND MARKET CHECK
Again, average 30-year fixed rates are down substantially this past week! Average 30-year Fixed Mortgage rates fell another 0.18% for the week ending January 17, 2008, to 5.69%. The average rate for the last week was 5.87%, One year ago, rates average 30 year fixed rates - 6.23%. Once again, it is very high home inventory, and tighter loan underwriting standards - not these very favorable interest rates - that are behind the state of today's real estate market.
"The latest retail sales report indicated that shoppers scaled back spending in December, as retail sales declined by 0.4 percent from November’s level," said Frank Nothaft, Freddie Mac vice president and chief economist. "Particularly weak were sales of building materials, garden equipment and supply stores, which fell by 2.9 percent from the previous month. The declines aggravated concerns about the well being of the economy and exerted downward pressure on mortgage rates."
"Mortgage rates moved down across loan products for the third consecutive week. Average rates on 30-year fixed-rate mortgages (FRMs) and 15-year FRMs are at their lowest since July 2005. The results from this week’s survey mark the first time in seven years that the average rate on the 15-year FRM is lower than the average rate on 1-year adjustable-rate mortgages (ARMs)."
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 would like current stats for your neighborhood, or any area you are considering for a move or investment - let us know!
DEAN MOSS & DEAN'S TEAM CHICAGO
