MARKET REPORT

Market conditions are ever-changing.
Today’s news is tomorrow’s history.
It has been said that with hindsight, we are all geniuses!

Please visit here frequently as this section will contain periodic updates.

Data (closed sales, January 1st through September 30th for each of the 4-yrs.) are for all single-family attached (i.e., townhomes, individual condo units) and detached (“houses”) single-family properties. Data are from “connectMLS” and are assumed to be correct.

Caution: Movement in Average or Median housing prices from one period to another cannot be understood as indicating price movement applicable to a particular property or even to a particular neighborhood. Housing is diverse and many factors (including numbers of REOs/Short Sales) affect the prices.

In the data presentation below, you will observe the following:

1st, There was an increase in number of sales, first 9-mos. 2010 vs. same period in 2009. This positive trend is due, at least in part, to a recovery from the “shock-wave” that followed the demise of Fannie Mae and Freddie Mac in 9-2008.

2nd, For the six counties and City of Chicago (fyi: Chicago data are also incorporated in with Cook County data), only Lake County had increases in both the Median Sold Price and Average Sold Price (first 9-mos. of 2010 vs. the first 9-mos. of 2009). For the other areas, the Median & Average Sold Price declined (except: Chicago experiencing a modest increase in the Average Sold Price).

3rd, All 2010 prices are significantly less than 2008 and 2007 prices.

4th, Percentage change in the median sold price, 2010 period vs. 2009 period:
Cook County (including Chicago): -7.65%;  DuPage County: -2.5%;  Kane County: -11.9%;  Lake County: +5.5%;  McHenry County: -8.1%;  Will County: -4.1%;  City of Chicago: -8.9%.

Again, movement in the median (or, average) sold price is not to be understood as being applicable to price movement for a particular property (or, to a particular neighborhood).

5th, My observation and opinion: There have been increasing sales activity and many markets are working to absorb REOs and Short Sales; this is a positive. On the flip-side of the coin, there are many neighborhoods that are inundated (and some not so) with REOs and Short Sales. As a broad generalization, many markets remain much more of a “buyer’s market” than not.

6th, Access prior market data reports (click-on “market report”) at our website: www.AppraisalQualityAssurance.com

Lee Lansford, IFA, ASA, has been appraising since 1983 and has been licensed (Certified Residential) in Illinois since the inception of appraiser licensing in the early 1990s.

He is a member of the Illinois “Real Estate Appraisal Administration & Disciplinary Board” (appointed by the Governor in 8-2008). Among Illinois licensed Certified Appraisers, he is 1 of 28 (out of approximately 4200 Certified Appraisers) who is a “Appraiser Qualifications Board” (AQB) Certified Instructor of the Uniform Standards of Professional Appraisal Practice (such governs appraisal practice).  Further, he is past-instructor of “appraisal principles” at the College of DuPage (Glen Ellyn, IL).

Lee has served in various leadership positions (past-Director, IL Coalition of Appraisal Professionals—or, ICAP; current State Director & National Director of the National Assoc. of Independent Fee Appraisers—NAIFA, past President of the Chicago Chapter of NAIFA) within the appraisal profession.  He is a professionally designated member (Residential) of both the NAIFA and the American Society of Appraisers (ASA).

Data are from the “connectMLS” and are assumed correct. Data (closed sales, January 1st through April 30th for each of the 4-yrs.) are for all single-family attached (i.e., townhomes, individual condo units) and detached (“houses”) single-family properties.

Caution: Movement in Average or Median housing prices from one period to another cannot be understood as indicating price movement applicable to a particular property. This is due to “what” (there’s a great variation in housing) may be selling during a particular period; further, the presence of properties that are REOs (bank-owned) & Short Sales (current lender accepts less than full pay-off of existing loan balance)—such properties seldom having sold prices at the “high-end” of neighborhood housing prices.

In what follows, you will observe the following:

1st, There was an increase in number of sales, first 4-mos. 2010 vs. same period in 2009. The increase is due, I surmise, to a recovery from the “shock-wave” that followed the demise of Fannie Mae and Freddie Mac in 9-2008.

2nd, Among the six counties and City of Chicago (fyi: Chicago data are also incorporated in with Cook County data), only Lake County had an upward movement in both the Median Sold Price and Average Sold Price when comparing the first 4-mos. of 2010 vs. the first 4-mos. of 2009. Thus, 6 of the 7 areas surveyed experienced a downward movement in these two prices.

This market report contains historical sold data (source: “connectMLS”) for all single-family detached (“houses”) and detached (townhouses, condo units) in the various counties in and around Chicago.

Please note that movement in Median and/or Average Sold Prices cannot be applied to a specific property in order to approximate the price movement from one period to another! The average and median prices are affected by WHAT is selling and, also, by numbers of bank-owned (REO) and Short Sale transactions.

As general observations, sales volume (numbers of sales) remained fairly constant between 2009 and 2008…but far less than the volume for 2007.  Further, median and average sold prices continued their decline during 2009 versus the prior years.

Cook County

                        Year     # Sold              $Median Price          $Average Price

                        2009    40,490             199,000                       257,842

                        2008    40,050             253,000                       330,326

                        2007    54,266             266,000                       340,242

DuPage County

                        2009    7941                231,000                       295,530

                        2008    7921                264,500                       335,731

                        2007    10,575             272,000                       347,035

Kane County

                        Year     # Sold              $Median Price           $Average Price

                        2009    4027                187,450                       217,263

                        2008    4078                215,000                       253,360

                        2007    5672                230,000                       274,303

Lake County

                        2009    6004                196,500                       280,509

                        2008    6016                240,000                       341,311

                        2007    8178                260,000                       380,887

McHenry County

                        2009    2773                181,000                       201,621

                        2008    2786                200,000                       237,427

                        2007    3817                226,500                       258,004

Will County

                        2009    6137                180,000                       210,315

                        2008    5964                210,700                       246,576

                        2007    8070                224,900                       262,451

If you would like to have similar data for a more refined area, or, community, please contact Lee Lansford, IFA.

Market Report
2008 vs. 2007
Chicago & Suburban Areas

INTRODUCTION

This is a report of certain (Sold Properties: average days-on-market for sold properties; median sold price; average sold price. For Sale: supply & average days-on-market, aka: DOM) market data for the counties located in northeastern Illinois:

Cook (includes the City of Chicago), DuPage, Kane, Kendall, Lake, McHenry and Will. 

The data which are reported are specific to all single-family—both detached (“houses”) and attached (individual condo units, townhouses etc.)—dwellings.

The tables below present certain data (per the “compassMLS”; effective as of 1-1-09) for each county. Data is by county with 2008 data presented first and followed by 2007 data.  Data for the “Sold Properties” are contained in these tables.  Data specific to “For Sale” (effective as of 1-1-2009) are contained within the “Summary” section (below) of this report and are not contained in any of the tables.

Please be aware that this broad overview of market activity should not—and, cannot—be used, or interpreted to apply, to any one specific property or neighborhood or community in any of these counties.  As an example, a decline in either the median or average sold price from one period to another includes (during 2008) increasing numbers of REO and/or Short Sale transactions. Market conditions affect sales activity and prices and the results will vary widely from location to location and sub-markets within a larger market.

As a generalization, market conditions are best characterized as a “buyers’ market”.

Clients may request a “market report” tailored to a specific need and location by contacting me via e-mail at Lee@AppraisalQA.com

SUMMARY
Sold Properties

Sales Activity (“# Units” in the tables below):  Sales activity throughout the 7 counties during 2008 saw a notable decline in comparison to 2007.

What follows is the percentage decline in sales volume (# sold) for each county between these two years:  Cook, -26.7%..........DuPage, -25.4%..........Kane, -28.4%..........Kendall, -25.5%..........Lake, -26.8% …......McHenry, -27.1%.........Will, -26.3%.

Average Marketing Time (“Avg. MT” in the tables below) for each of the counties in 2008 was between 5 and 6 months.  During 2007, you will observe that the average was approximately 4 (or, for certain counties, slightly in excess of 4 full months) months. Lengthening marketing time is an indicator of slowing market activity.

Median Sold Price:  For each county, the 2008 median sold price is less than the 2007 median sold price.
The percentage decline for each county for these two years:
Cook, -4.9%;  DuPage, -2.6%;  Kane, -6.5%;  Kendall, -1.1%;  Lake, -7.7%;  McHenry, -11.7%;  Will, -6.2%.

Average Sold Price:  For each county, the 2008 average sold price is less than the 2007 average sold price. The percentage decline for each county for these two years:
Cook, -2.7%;  DuPage, -3.2%;  Kane, -6.5%;  Kendall, -4.1%;  Lake, -10.3%;  McHenry, -8%;  Will, -6%.

For Sale Properties

Assuming (and, this is no small assumption)—for the purpose of analysis—that the number of sales during 2008 represents the sales volume for 2009, and comparing these numbers to the number currently (as of 1-1-2009) “For Sale”, indicates markets in over-supply with each (exception: Will) county having a supply of housing that may take more than one full year to absorb.

In very general thinking, a supply that is projected (or, estimated) to be absorbed in, say, approximately a 6-month period might indicate a market that is characterized as being “in-balance”. Note that this is a generalization and not an absolute. Still, the differences are significant.

Further, for the combined 7 counties, current average days-on-market (DOM) is approximately 8 months. Within these counties, such a relatively large average DOM would not be expected to be present in markets characterized as being either “in balance” or having “under-supply” status.

For each county, supply (for sale) status as of 1-1-2009:

Cook:  41,445 for sale vs. 39,768 sold in 2008; average days-on-market = 233 days.
DuPage:  8066 for sale vs. 7890 sold in 2008; average DOM = 247 days.
Kane:  4699 for sale vs. 4059 sold in 2008; average DOM = 237 days.
Kendall:  1551 for sale vs. 1305 sold in 2008; average DOM = 245 days.
Lake:  7111 for sale vs. 5987 sold in 2008; average DOM = 250 days.
McHenry:  3397 for sale vs. 2781 sold in 2008; average DOM = 254 days.
Will:  5869 for sale vs. 5945 sold in 2008; average DOM = 221 days.

DATA PRESENTATION
Sold Properties:  2007 & 2008
(per compassMLS)

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