Chicago Housing Prices Hold Steady. What Does This Mean for You?
June 5th, 2009 categories: Chicago Info/News, Chicago Real Estate News, Economic Recovery, For Homeowners, For Sellers, Housing Market, Mortgage Info
A strange thing happened in the Chicago housing market this April. It wasn’t that the number of housing sales rose when compared to March. That was welcome news, but it was also expected.
No, the odd thing was that median housing prices in the city of Chicago didn’t drop this April. That’s the second month in a row that housing prices in the city did not fall, and it follows a slight 0.8 percent increase in median housing prices that we saw in March.
It’s nice to see home prices here not fall for two consecutive months. To me, that’s a sign that the Chicago housing market has stabilized. It might be a sign that we will see housing values gradually begin to appreciate by the end of 2009.
If you’re a buyer, what does this mean? First of all, it’s not a reason to panic. Just because city housing prices didn’t fall once again this April, that doesn’t mean that Chicago housing isn’t still a great value.
Compare the median price of a home or condominium in Chicago today to what it was just one year ago. Today, that median price checks in at $220,000. A year ago in April, the median price was a far higher $300,000. Last year at this time, it cost the average city buyer 26.7 percent more to buy a home or condominium in Chicago.
In other words, this is still a great time for buyers in the city. And it stands to remain so for many more months.
For sellers, the stabilizing housing prices represent obvious good news. Sellers still have to price their homes properly to sell, of course. But perhaps now the continual pressure on sellers to reduce their asking prices will lessen a bit.
Sellers should also take heart that housing sales rose in April. It looks as if buyers, many who had been waiting for a bottom of the market, are starting to make offers again. This can only help sellers, and help spur on a gradual recovery of city housing prices.
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