Crain’s today reported that sales in February rose in comparison to last year but median prices fell. This could be partly due to strong activity of distressed sales, spurring on investors and buyers looking for deals, typically below market rate.
In addition to distressed sales, many large developments have cut prices significantly to help spur sales. Most recently, Belgravia Realty Group teamed up with @properties to help market Union Row and 565 Quincy, which has seen strong sales in the past few weeks.
Other developers are also considering moving a portion of their inventory as rental units, reducing inventory at their projects. With HAFA introducing expanded program options on April 5th, this could continue the interest and inventory available for short sales, many of which may have had trouble finding lender approval previously.
The spring market could further support a recovery quarter. Buyers and investors will fight for remaining distressed properties. The tax credit, also due to expire April 30th is another incentive for buyers looking to leverage their position on the market.
It will still be a buy and hold strategy for many buyers currently. Several factors such as interest rates, unemployment rate, and comparable resales and distressed sales will still factor into purchase.
CHICAGO-AREA SALES |
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Local sales of single-family homes and condo rose in February for the eighth month. | |||
Month | 2010 | 2009 | Change |
January | 3,922 | 3,035 | 29.2% |
February | 4,134 | 3,133 | 32% |
Month | 2009 | 2008 | Change |
January | 3,035 | 3,927 | -22.7% |
February | 3,133 | 4,326 | -27.6% |
March | 4,260 | 5,759 | -26.0% |
April | 4,747 | 6,094 | -22.1% |
May | 5,634 | 6,927 | -18.7% |
June | 7,140 | 7,806 | -8.5% |
July | 7,427 | 7,408 | 0.3% |
August | 7,009 | 6,917 | 1.3% |
September | 6,862 | 6,477 | 5.9% |
October | 7,286 | 5,467 | 33.3% |
November | 6,826 | 3,978 | 71.6% |
December | 5,752 | 4,320 | 33.1% |
Full year | 69,290 | 69,406 | -0.2% |
Source: Illinois Assn. of Realtors |
Sherwin is a REALTOR® in the Chicago & Suburban area with @properties. Questions can be forwarded to Sherwin Sucaldito
”Sales Continued Growth” by Sherwin Sucaldito is licensed under a Creative Commons Attribution-No Derivative Works 3.0 United States License.
Based on a work at Realty Evolved