July 2012 Monthly Market Report
During the month of the 30th Olympiad, housing medaled in several arenas. A few short years ago, housing was considered a headwind to economic recovery. Today, housing is seen as a tailwind to a stalling economy. For the first time since 2005, housing is on track for contributing positively to national GDP in 2012. That can occur either by way of direct residential investment or through remodeling and other ancillary services. Watch for signs of sustained tailwinds in a variety of indicators, including market times, seller concessions, prices and absorption rates.
New Listings in Chicagoland were up 1.2 percent for detached homes but decreased 1.8 percent for attached properties. Listings Under Contract increased 56.3 percent for detached homes and 69.7 percent for attached properties.
The Median Sales Price was down 2.6 percent to $185,000 for detached homes and 11.7 percent to $132,500 for attached properties. Months Supply of Inventory decreased 41.5 percent for detached units and 55.2 percent for attached units.
Sustained recovery will not occur without real employment and wage growth. Consumers must be confident in both the economy and their family finances before signing on the dotted line. Cheap borrowing costs have served as the glue binding things together. Unimaginable a few years ago, the rate on a 30-year fixed mortgage recently ducked below the 3.49 percent marker. Job creation and GDP numbers will garner particular attention this quarter.
Click HERE to see MRED’s Monthly Indicators Report for July 2012
[NOTE: Residential Detached and Attached single family activity only.]
Click HERE to see MRED’s Lender Mediated Report for July 2012
[NOTE: Lender-mediated properties are those marked in MRED as “Foreclosed”, “REO”, “Pre-Foreclosure” or “Short Sale”. Residential Detached and Attached single family activity only.]