CHICAGO IL REAL ESTATE STATS PACK - February 4, 2008
Good Morning, Everyone!
More and more borrowers with sub-prime loans are escaping costly rate resets by re-financing into conventional, fixed-rate loans. Here in Illinois, a CA industry expert predicts that between 25 and 30% of sub-prime borrowers either paid off their loan or sold last year, compared to far lower re-fi figures for conventional rate loans.
Those most likely candidates for successful re-financing out of sub-prime loans have at least some equity in their homes, and improving credit credentials. Many who purchased their homes with low or no money down within the last couple of years are having difficulty getting new fixed-rate conventional loans, however.
Some seek government-backed FHA loans, rather than conventional programs. These programs currently have a loan limit of $275,000 in the Chicago Metro Area, but Economic Stimulus Legislation pending in Washington may raise that ceiling.
Please review our post today on BlogChicagoHomes.com for more information and a link to full coverage in today's Chicago Tribune, in an article by Marilyn Kennedy Melia.
Here's our updated Chicago IL Real Estate Stats Pack for Monday Morning, February 4th.
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 February 3rd 4,228 39 46 84
w/e January 27th 4,306 36 35 40
% CHANGE -1.8% +8.3% +31.4% +110.0%
CLOSED PROPERTIES DATA
AVG SALE PRICE AVG DAYS ON MKT TOTAL VOLUME
w/e February 3rd $361,223 147 DAYS $16,616,261
w/e January 27th $317,766 188 DAYS $11,121,833
% CHANGE +13.7% -21.8% +49.4%
THEORETICAL TIME TO CLEAR EXISTING INVENTORY (ABSORPTION RATE) -
w/e February 3rd - LAST 12 MOS - 11.73 LAST 6 MOS - 20.45 LAST 3 MOS - 37.76
w/e January 27th - LAST 12 MOS - 11.51 LAST 6 MOS - 19.43 LAST 3 MOS - 34.71
PERCENT OF HOMES SELLING IN 180 DAYS -
w/e February 3rd - 24.80% (UNSOLD - 75.20%)
w/e January 27th - 25.40% (UNSOLD - 74.60%)
SOURCE: MLSNI, AREA MARKET SURVEY DATA
OBSERVATIONS
My concern continues about low volume of Total Active Listings, and Properties Pending Sale, but encouraged by increases in Sales Volume (although sales volume does peak at the end of each month) and Average Sales Price. The Average Market Time fell this week - but has yet to hit a downward trend in the New Year.
Absorption Rate and Percentage of Sale Within Six Month (180 Days) continue to be troubling, with the market here continuing to be out of balance on the buy side - last 3 month running average at 37.76 months of inventory, up from just under 35 months a week ago. The chances of selling a home within a normal six-month marketing time frame dipped to 24.80%, down slightly from 25.40% last week.
RATE AND MARKET CHECK
For the first time in several weeks, average 30-Year Fixed Mortgage Rates increased last week, by 0.20% versus prior-week lows. Average 30-year Fixed Mortgage rates for the week ending January 31, 2008 were 5.68%. The average rate for the last week was 5.48%, Average fixed rates were 6.34% this time in 2007. Despite another Fed rate cut last week - a total 1.25% drop in the Benchmark Fed Funds Rate within an 8 day period - mortgage markets pretty much built-in and expected this second rate decrease.
"Mortgage rates ended their five-week descent this week, with average rates on 30-year and 15-year fixed rate mortgages coming up by about 0.2 percentage points," said Frank Nothaft, Freddie Mac vice president and chief economist. "This increase completely erased the previous week's decline. The movement in fixed mortgage rates was broadly consistent with the movements of Treasury bonds over the week."
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 to discuss current Real Estate Market Trends anywhere in the Chicago area, please give us a call!
DEAN MOSS & DEAN'S TEAM CHICAGO
