Housing Prices in Chicago Still Affordable, According to Zillow
February 19th, 2010 categories: Chicago Real Estate News
Zillow.com has quickly become one of the most popular sites for homebuyers and sellers. Buyers use it to help determine if the home they are considering is a bargain or a rip-off. Sellers use it to help set the best price for their own listings, not too high and not too low.
Problem is, Zillow isn’t always accurate when it comes to housing prices. I’ve found that the market reports from the Illinois Association of REALTORS® are usually a far better gauge of how the Chicago housing market is performing.
That said, it can be fun to use Zillow to check out the average housing value of homes in your city. And the site is useful for determining housing trends: You’ll be able to tell, for instance, if home values rose or fell from one month to the next, and by about how much.
That’s why the fourth quarter markets report released earlier this month by Zillow is an interesting read. The news for Chicago? It’s good for buyers, not as great for sellers.
According to the report, home values in Chicago dropped 9.9 percent from December of 2008 to the same month in 2009. Zillow lists the average value of a Chicago home at $200,900 in December of 2009. For the entire Chicago region, which also includes the suburbs, the average value of a home stood at $197,400.
What does all this mean for buyers and sellers? For sellers, it means that you really do have to be careful when setting the price of your residence. If you price it too high, you’ll struggle to sell; buyers can simply find better bargains from another seller. Your best move is to meet with a skilled REALTOR® who knows real estate prices in your neighborhood. This real estate professional can help you set the best price for your home.
For buyers, the Zillow report is actually good news. You can still find a reasonably priced house in Chicago, even if you’re looking for a condominium or single-family home in such hot neighborhoods as Lincoln Park, Lincoln Square, Lakeview or Wicker Park.
Of course, you shouldn’t take the Zillow report as gospel. You’ll find that Chicago homes in top locations in trendy neighborhoods will usually sell for far more than $200,900. This doesn’t mean that the Zillow report isn’t interesting reading, or that it doesn’t highlight local housing trends. It’s best, though, to rely on a REALTOR®’s information when trying to determine whether a home is a good bargain or slightly overpriced.
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