Market Talk

Market Comments

There has been a lot of negative press about the real estate market in the past few months including the word "crash." I do not hear that sound, but what I do hear is "quiet," which is a perfectly normal sound for a stabilizing market. A normal market.

We experienced a few dizzy years of "silly money", meaning throwing money at any "new bricks" the buyer found. Now, it is a slower pace, with fewer transactions, but things are selling. The ratio from list price to selling price is 91-94.5% of the original asking price, which is still very good. The average market time used to be 3 to 6 months, it is now 8 to 12 months with more expensive properties having even longer market time. Fewer transactions, longer market time, but still selling.

Chicago has always been "Steady Eddie," never experiencing the price spikes of the East or West coasts. Chicago has a diverse, stabile economy, a rich cultural heritage, an amazing amount of constantly changing and improving neighborhoods. Plus, a magnificent lakefront with beautiful new buildings surrounding Millennium Park. The positives are endless. Who wouldn’t want to live here!

Sellers need to be very realistic about pricing their properties for today’s market. The 5-7% "Let’s try it and see what happens" pad can not be part of the equation. Staging your home for maximum eye appeal is critical to make the home stand out over other similar listings.

Mortgage rates are very attractive, settling in at just over 6%. Real estate is a cycle. In 1982, there was owner financing at 18% - believe me, a quiet, steady market is far easier to deal with.

It is a time of opportunity, not doom and gloom. The abundant supply will eventually be absorbed; and the questions of "Where and when shall I move? What shall I spend, and where can I get the best rates?" will be questions tomorrow’s buyer will have answered by a stable, steady Chicago Real Estate market.