MRED Blog

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.]

We’re halfway through 2012, and what a year it’s been. Residential real estate has finally taken some meaningful strides toward recovery, and they’ve all been self-powered without divine (or governmental) intervention. Yes, there have been some head fakes in the past, but there’s real reason to believe that market turnaround awaits us. Beyond home prices, key metrics to watch include Days on Market, Percent of List Price Received and Months Supply of Inventory. Locally, several indicators showed improvement. Let’s see what the rest of our local data has to say.

New Listings in Chicagoland were down 0.7 percent for detached homes and 10.0 percent for attached properties. Listings Under Contract increased 52.2 percent for detached homes and 65.4 percent for attached properties.

The Median Sales Price was up 2.4 percent to $194,500 for detached homes but decreased 6.5 percent to $140,175 for attached properties. Months Supply of Inventory decreased 40.9 percent for detached units and 54.8 percent for attached units.

We seem to be at a critical inflection point in our attempts to spur more hiring. Job growth provides the dual benefit of stimulating new household growth as well as relieving distressed homeowners. There’s also the positive feedback loop of housing creating jobs and jobs creating housing. Keeping the affordability picture afloat, the Fed has vowed to keep interest rates around 4.0 percent through mid-2013.

Click HERE to see MRED’s Monthly Indicators Report for June 2012

[NOTE: Residential Detached and Attached single family activity only.]

Click HERE to see MRED’s Lender Mediated Report for June 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.]

Spring has brought both change and clarity to our local market. Some sellers are seeing competing bids on their properties which have led to modest price gains. Buyers have fewer options from which to choose in many submarkets. Headlines and sound bites can often mask regional variability. With fewer distressed properties selling, prices are effectively “melting up” due to less downward pressure. May looked pretty good all around.

New Listings in Chicagoland were down 2.3 percent for detached homes and 10.5 percent for attached properties. Listings Under Contract increased 50.2 percent for detached homes and 64.2 percent for attached properties.

The Median Sales Price was up 3.2 percent to $178,000 for detached homes but decreased 3.4 percent to $140,000 for attached properties. Months Supply of Inventory decreased 40.7 percent for detached units and 53.7 percent for attached units.

In economic news, May’s jobs report was disappointing, and there’s a growing concern about the pace of domestic growth. Last month was also unsettling for investors, prompting some to hunt for better returns in the housing market. This forces other consumers up the price ladder. In politics, the Senate approved a 60-day National Flood Insurance Program extension. But with campaign season upon us, major housing-related bills or policy shifts are unlikely.

Click HERE to see MRED’s Monthly Indicators Report for May 2012

[NOTE: Residential Detached and Attached single family activity only.]

Click HERE to see MRED’s Lender Mediated Report for May 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.]