Windy City Neighborhoods » Condos http://windycityneighborhoods.com Fri, 20 Jan 2012 19:54:01 +0000 en hourly 1 http://wordpress.org/?v=3.0.1 December Existing-Home Sales Show Uptrend Daily Real Estate News | Friday, January 20, 2012 http://windycityneighborhoods.com/2012/01/december-existing-home-sales-show-uptrend-daily-real-estate-news-friday-january-20-2012/ http://windycityneighborhoods.com/2012/01/december-existing-home-sales-show-uptrend-daily-real-estate-news-friday-january-20-2012/#comments Fri, 20 Jan 2012 19:54:01 +0000 John Astorina http://windycityneighborhoods.com/?p=254 Existing-home sales continued on an uptrend in December, rising for three consecutive months and remaining above where they were a year ago, according to the National Association of REALTORS®.

The latest monthly data shows total existing-home salesrose 5.0 percent to a seasonally adjusted annual rate of 4.61 million in December from a downwardly revised 4.39 million in November, and are 3.6 percent higher than the 4.45 million-unit level in December 2010. The estimates are based on completed transactions from multiple listing services that include single-family homes, townhomes, condominiums and co-ops.

Lawrence Yun, NAR chief economist, said these are early signs of what may be a sustained recovery. “The pattern of home sales in recent months demonstrates a market in recovery,” he said. “Record low mortgage interest rates, job growth and bargain home prices are giving more consumers the confidence they need to enter the market.”

For all of 2011, existing-home sales rose 1.7 percent to 4.26 million from 4.19 million in 2010.
Affordability Conditions

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to another record low of 3.96 percent in December from 3.99 percent in November; the rate was 4.71 percent in December 2010; recordkeeping began in 1971.

NAR President Moe Veissisaid more buyers are expected to take advantage of market conditions this year. “The American dream of homeownership is alive and well. We have a large pent-up demand, and household formation is likely to return to normal as the job market steadily improves,” he said. “More buyers coming into the market mean additional benefits for the overall economy. When people buy homes, they stimulate a lot of related goods and services.”

Total housing inventory at the end of December dropped 9.2 percent to 2.38 million existing homes available for sale, which represents a 6.2-month supply at the current sales pace, down from a 7.2-month supply in November.

Available inventory has trended down since setting a record of 4.04 million in July 2007, and is at the lowest level since March 2005 when there were 2.30 million homes on the market.

“The inventory supply suggests many markets will see prices stabilize or grow moderately in the near future,” Yun said.
Who’s Buying What

Foreclosures sold for an average discount of 22 percent in December, up from 20 percent a year ago, while short sales closed 13 percent below market value compared with a 16 percent discount in December 2010.

The national median existing-home price for all housing types was $164,500 in December, which is 2.5 percent below December 2010. Distressed homes — foreclosures and short sales — accounted for 32 percent of sales in December (19 percent were foreclosures and 13 percent were short sales), up from 29 percent in November; they were 36 percent in December 2010.

All-cash sales accounted for 31 percent of purchases in December, up from 28 percent in November and 29 percent in December 2010. Investors account for the bulk of cash transactions.

Investors purchased 21 percent of homes in December, up from 19 percent in November and 20 percent in December 2010. First-time buyers fell to 31 percent of transactions in December from 35 percent in November; they were 33 percent in December 2010.

Contract failures were reported by 33 percent of NAR members in December, unchanged from November; they were 9 percent in December 2010. Although closed sales are holding up better than this finding would suggest, contract cancellations are caused largely by declined mortgage applications and failures in loan underwriting from appraised values coming in below the negotiated price.

Single-family home sales increased 4.6 percent to a seasonally adjusted annual rate of 4.11 million in December from 3.93 million in November, and are 4.3 percent higher than the 3.94 million-unit pace a year ago. The median existing single-family home price was $165,100 in December, which is 2.5 percent below December 2010.

Existing condominium and co-op sales rose 8.7 percent to a seasonally adjusted annual rate of 500,000 in December from 460,000 in November but are 2.0 percent below the 510,000-unit level in December 2010. The median existing condo price was $160,000 inDecember, down 3.0 percent from a year ago.
Around the Country

Regionally, existing-home sales in the Northeast jumped 10.7 percent to an annual pace of 620,000 in December and are 3.3 percent above a year ago. The median price in the Northeast was $231,300, which is 2.7 percent below December 2010.

Existing-home sales in the Midwest rose 8.3 percent in December to a level of 1.04 million and are 9.5 percent above December 2010. The median price in the Midwest was $129,100, down 7.9 percent from a year ago.

In the South, existing-home sales increased 2.9 percent to an annual level of 1.76 million in Decemberand are 3.5 percent above a year ago. The median price in the South was $146,900, down 1.1 percent from December 2010.

Existing-home sales in the West rose 2.6 percent to an annual pace of 1.19 million in December but are 0.8 percent below December 2010. The median price in the West was $205,200, up 0.3 percent from a year ago.

Source: NAR


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]]> http://windycityneighborhoods.com/2010/05/this-month-in-real-estate-us-may-2010/feed/ 0 26 DAYS http://windycityneighborhoods.com/2010/03/26-days/ http://windycityneighborhoods.com/2010/03/26-days/#comments Sat, 06 Mar 2010 00:30:09 +0000 John Astorina http://windycityneighborhoods.com/?p=148 The Fed is going to stop buying mortgages in 26 days. 26 DAYS. Liquidity of mortgages on the secondary and tertiary markets will be drastically reduced. DRASTICALLY REDUCED!

Rates will rise 1 point at a minimum as a result of this lack of liquidity. Today’s 5.0% mortgage becomes tomorrow’s 6% mortgage, at a minimum. 6% MORTGAGE RATES.

Basic market theory holds that if rates go higher, prices will GO lower, as it will cost more to borrow money after the rise that it had before. A one percent increase in interest rates effectively adds 10% to the overall price of the property.

BUYERS NEED TO BE ATTUNED TO THIS.

As of today, nothing is going to change these hard market facts.

The market in Chicago is still declining, in both perception and reality.

This market is both a beauty contest and a price war.

Are you ready to dive in?


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]]> http://windycityneighborhoods.com/2010/03/26-days/feed/ 0 What It Boils Down To, My Friends . . . http://windycityneighborhoods.com/2010/02/what-it-boils-down-to-my-friends/ http://windycityneighborhoods.com/2010/02/what-it-boils-down-to-my-friends/#comments Tue, 23 Feb 2010 22:06:18 +0000 John Astorina http://windycityneighborhoods.com/?p=132 Is that it’s a beauty contest and a price war out there.

To my clients selling their lofts, condos. townhouses and single family houses. We have two fronts upon which we do battle. Presentation and price are now equally important to buyers. A property that is clean and staged well, must be paired with a realistic offering price. Those that are not will be cast to the wayside, either for being in disarray or for being too expensive. Sometimes, properties will be passed over for both reasons! Get it ready, keep it tidy, and price it right.


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