By now, you've heard about the continued weak sales pace nationally for single-family homes and condos. The 0.4% drop year-over-year in January, 2008 is the sixth straight month of declines across the U.S. The annualized sales estimate of 4.89 Million Units Projected Sold is the weakest projection since 1999.
Median sales prices also fell across the country in January, 2008, versus January, 2007, to $201,100 - down 4.6% from a year ago. National Absorption Rate, or the theoretical time to clear existing home inventory, jumped to 10.3 months in January, from 9.7 months in December, 2007 - just off the record national high of 10.5 months set in October of last year.
The median sales price here in Chicago IL, and the suburbs, far exceeds the national median, at $239,700 (the State of Illinois Median in January was $189,400 - down 5.3% from a year ago). The Chicago figure, however, is actually down over 2 percent from January of last year.
Units sold in the Chicago Metro Area, however, are off 34% over last year. In many areas of the City of Chicago and the surrounding suburbs, theoretical levels of inventory exceed 24 months, and the likelihood of selling during a normal marketing time frame of six months, often less than one in five.
From a subjective level, our Team members are seeing stalling and hesitancy from many of the buyer clients we are working with. They seem to feel prices are still on the downswing - it would be foolish to buy now, when you can wait a while, and save more money, in many buyer's opinions.
Sellers are beginning to understand the market is shifting lower in price, but many are still quite reluctant to drop their asking prices, or start their marketing at a new, prudent price level. Often, as a Listing Agent, I feel like a Military Family Emissary, knocking at a family's door with very dire news. Very disconcerting!
Please read our post today at BlogChicagoHomes.com, our Dean's Team Chicago Real Estate Blog. Here, you'll see links to more detailed discussion in today's Chicago Tribune and the online edition of Crain's Chicago Business.
DEAN & DEAN'S TEAM CHICAGO
Judy -
Glad your online, thanks for the comment. I know it's very similar here, city or suburbs.
BTW - stay off the Tri-State Tollway, northbound, if you can! It took me 2 hours, 25 minutes from O'Hare to Buckley Road in Libertyville today - bumper to bumper all the way. I've been in some frustrating Chicago area traffic before - but this was the worst!
Anything you need here in the city - let us know!
DEAN & DEAN'S TEAM CHICAGO