NOVEMBER HOME INVENTORY SHRINKS IN CHICAGO, ACROSS U.S.!
CHICAGO METRO AREA SINGLE FAMILY + CONDO INVENTORY DROPS 4.7% LAST 30 DAYS, 12.4% SINCE NOVEMBER, 2007!
In the opinion of many Real Estate Practitioners, one of the problems preventing a resurgence in Real Estate Sales is the continuing high levels of homes-for-sale inventory (high supply), combined with lowered buyer interest (low demand). It appears, however, that these inventory levels are beginning to fall somewhat, both here in the Chicago Metro Area, in other markets, and, in aggregate, nationally.
According to Chicago Area MLS Data compiled by HousingTracker.net, homes-for-sale inventory (a figure combining both single-family detached homes and condominiums) fell 5.8% between October and November, 2008. Inventory levels here, as of November 30, 2008, stood at 56.910 units for sale.
At the end of November, 2007, 64,970 units were on the market in and around Chicago. Current inventory represents a 12.4% versus last year's levels.
The Median Market-Wide Asking Price in Chicago stood at $268,950 at the end of November, 7.2% lower than the median price for the same month last year ($289,675), and a slight 0.3% increase over the October 31, 2008 figure - $268,125.
National inventory levels, according to research by ZipRealty, Inc., an Emeryville CA Discounted-Fee Real Estate Brokerage Company, dropped 3.6% in November versus October this year. ZipRealty studied MLS Data in 29 large metro markets in which they operate. Their study excludes most new construction and foreclosed (bank-owned property, or "REO" Property), as well as condos and co-op apartments in New York City.
Also, many sellers typically temporarily remove their home from the market during the Christmas Holiday Season, with intentions of re-listing the home in the spring, in hopes of stronger interest. Even so, however, according to research firm Zelman & Associates, the average inventory drop-off during November has averaged only a 1.9% decline over the past 25 years. This year's statistics indicate a far greater seasonal inventory drop.
The brokerage company estimates homes-for-sale inventory has fallen 10% from end-of-November, 2007 levels.
According to data from the National Association of Realtors, there were 4.2 Million home resales being offered for sale across the U.S. as of the end of November. This represents an estimated 10-month inventory level nationally. Most experts agree the housing market is in balance at a 6-month inventory.
Dean's Team Chicago MLS Data, covering the Neighborhoods on the North and Northwest Sides of Chicago we serve frequently, shows an average inventory level over 17 months for homes, condos, and small, 2-4 unit apartment buildings - considerably worse than market balance.
James R. Hagerty offers more details in his Wall Street Journal Article from last Wednesday, December 10th. The article provides a link to an interactive graph describing inventory in all surveyed markets across the U.S., including Chicago.
DEAN MOSS & DEAN'S TEAM CHICAGO
