upward trendThose of us with retirement accounts have probably noticed the upward trajectory of the stock market over the past several months, but it shouldn’t go unnoticed that some key numbers are up in the national and Chicago real estate markets as well.

Pending home sales – sales that are under contract but not yet closed – rose for nine straight months according to the National Association of Realtors. This positive news does not come as a surprise. Buyers came back into the market this autumn looking to take advantage of some of the lowest home prices of the decade, ultra cheap mortgage rates, and the $8,000 home buyer tax credit which was originally scheduled to expire at the end of November.

After a largely dormant year, Chicago-area closed sales of residential property increased 33% in October compared to the same time last year. Again, this uptick in sales activity can be attributed to the tax credit, which facilitated sales at the low end of the market, allowing move-up buyers to purchase their next homes, creating a chain reaction of positive sales activity. Median home prices in Chicagoland were down 15.6% from a year ago, a reflection of the concentration of activity at the lower end of the market among first-time buyers.

September marked the fifth straight month for the rise of the Chicago Case-Shiller Index. The index tracks the whole of the Chicago real estate market, similar to stock indexes like the S&P 500. Again, this is good news.

As I recently wrote, the market will be slowing down for now as the holidays arrive, but once the spring market begins in mid-January, the regular seasonal bump in sales combined with the newly-extended home buyer tax credit should see the Chicago downtown residential market heat up rather nicely.

If you’re considering buying to take advantage of the credit or selling to take advantage of the spring market, now is the time to act.


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Comments

  • Ritch08

    For people who have the money, now is the right time to make real estate investment but for people who don't it's advisable to live beyond our comfort zones and live within our means only. Stay away from debts it won't be contributive but will only be destructive. Thanks and good luck.

  • Ritch08

    For people who have the money, now is the right time to make real estate investment but for people who don't it's advisable to live beyond our comfort zones and live within our means only. Stay away from debts it won't be contributive but will only be destructive. Thanks and good luck.

  • cliffmory

    Although the housing market are clearly the way to go to achieve full recovery, these early results are very encouraging about the state of our industry..

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