Today the most recent reports updating us from the Illinois Association of Realtors has given us another opportunity to look at the glass as half empty or half full.
As for me, while not always successful but given the chance will 9/10 times find myself seeing the glass as half full.
Here is the latest news; Despite record low mortage rates, home sales and median home prices tumbled in the Chicago area during September. According to the Illinois Association, September sales were down 22.4% from a year ago and down 5.4% from August. The median sales price was down 12.1% to $175,000.00
This Chicago "area" defines 9 counties in Northeastern Illinois and may not be a reflection on your area.
For Chicago, home sales fell 26.9% compared with last year and the median home price is down 20% from last year this time.
The forecasts for the remaining months of 2010 suggest more of the same. Other realtors and I can vouch for this, suggest that distressed properties, including foreclosures and short sales, dominate the market and are driving down prices.
Statewide numbers appear similar with home sales down 23.4% from a year ago and the median home sale price down 8 percent from a year ago to $145,983.
What can we take from this? Well if you are a "GLASS IS HALF EMPTY" type, then you'll say the market is terrible. Don't buy a home, don't invest in real estate and wait until things improve. Well, this may in fact be decent logic and based on past history one may conclude that things will not get any better for some time and we may not have seen prices hit the bottom yet.
I however would rather paint a better picture for you all to reflect on this news. Lets read between the lines.....The majority of all my clients and those other realtors are reporting that the majority of all sales have been foreclosures and short sales. Now think for a moment...Do you suppose all those buyers, who have recently purchased homes with prices as low as they are, coupled with interest rates at all time lows will see a great move in property value north of their investment when the market returns? Of course! If 9 out of 10 homes in any subdivision were purchased prior to the market slide then its a matter of economics that once distressed homes are no longer much of an option, home values will spike higher to that of a common ground that all home sellers once had. This means an opportunity people for you to purchase homes or investment properties as prices now that will see great returns in future years!
Don't sit on the sideline and wait for a recovery. It may be too late and interest rates may not be as low as they are today.
The best opportunity for anyone that has been renting and may qualify for a home is to act now. If your looking to invest in property above and beyond your home, act now. If you are in a financial position to sell your home and upgrade, do it now!
If you need help and would like to speak with a great lender, contact me today and I'll put you in touch with a couple of the best in the industry to discuss options with you. If you are already approved and ready to start your search then contact a local agent or if your in the Dupage/Will County area, contact me today, you'll be glad you !
Thanks as always for reading my blog and please feel free as always to forward this on to friends or family that you feel may benefit from hearing the most up to date news in real estate or tips for your home:)