For the first time in over 40 months, the annual change in sales were positive statewide. For the months of July, August and September, sales in Chicago were all positive, with September recording and increase of almost 6%.
There are signs that the housing market may be signalling a change in direction, although the prospect of continued large numbers of foreclosed properties will continue to exert downward pressure to sales prices, as the market still significantly exceed demand. Currently Illinois and Chicago have inventories of 9 and 10 months, respectively. Inventory is the time it would take to sell off the supply of listings. A year ago, the inventory was close to 2 months. Much of the growth in listings could be attributed to foreclosed properties.
New housing construction has inched higher over the last 2 months. A new federal initiative to assist state programs for new homeowners may also provide a much-needed boost for the housing market.
The economy continues to exhibit signs that the recovery from recession will be a jobless one for awhile. The largest job losses were in construction, manufacturing, and retail trade. Not helpful to the housing market.
What about the future? The predictions are that we will continue to see an increase in home sales. Also, the median sales prices will decline at a much slower rate. We will recover, however, slowly.
For more information see: www.illinoisrealtor.org.