Chicago REALTORS® – And Sellers – Looking Forward To A Better 2010
February 11th, 2010 categories: Chicago Info/News, Economic Recovery, For Buyers, For Homeowners, For Sellers, Housing Market
Chicago Tribune writer Mary Ellen Podmolik did a good job last week in summing up the mood at the 2010 Economic Forecast held by the Chicago Association of REALTORS®: 2009 was not great. This year, while not exactly shaping up to be a banner year, should be better.
The Chicago association holds its economic forecast every year. As you can guess, the last few have been quite gloomy. This year’s, though, had a different air about it: Attendees and speakers seemed to think that the worst days of the local residential real estate market were behind us.
I agree. When I look at the second half of 2009, I see a local housing market in recovery mode. Chicago condominium, townhouse and single-family home sales rebounded quite nicely even as summer turned to fall and fall turned to winter. All signs are that housing sales will continue to rise as the 2010 spring selling season arrives. Prices, however, will not rise.
The economic forecast is not only a good event at which to gauge the mood of my fellow REALTORS®, it’s also a time to look back at the year that was.
At the most recent economic forecast, we learned that 51 percent of Illinois buyers in 2009 were first-time buyers. These buyers had an average age of 29 and boasted a median annual household income of $64,400. Repeat buyers in the state had a median annual household income of $92,800.
Detached single-family homes accounted for 67 percent of the home purchases in Illinois last year. Buyers said that they generally sold their homes for 95 percent of their listing price. That would rank as a solid figure if 58 percent of sellers hadn’t also reduced their listing price at least once before selling their homes.
Podmolik also pointed out a rather grim statistic: In Chicago last year, an astounding 50 percent of single-family home sales and 18 percent of condominium sales were either short sales or foreclosures last year. Those are two numbers that simply must fall in 2010.
I think I speak for everyone when I say “good riddance” to 2009. One last look at the year is all I can take. I have a feeling, though, that when the Chicago REALTORS® hold their 2011 economic forecast, we’ll have much fonder memories of 2010.
