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2011 Real Estate News... 

NEW CONSTRUCTION IN CHICAGO: (CRAINS)  Developers of downtown condos and townhomes lost more contracts than they inked in the fourth quarter, posting a -19 net sales figure, down from 111 in the third quarter and 148 sales in the fourth quarter of 2009, according to a report by Chicago-based consulting firm Appraisal Research Counselors. The annual sales tally sank to a new low of 498, compared with 572 sales in 2009. It marked the fifth consecutive annual decline and the third straight year of fewer than 600 sales since the market dropped off a cliff in 2008. There had never been less than 3,200 annual sales in the 10 preceding years, according to Appraisal Research data.

OUTLOOK?:   The Chicagoland region ended 2010 nearly even with home sales in 2009 while statewide the Illinois housing market continued to ride out the turbulent economic times boosted by sales from the homebuyer tax credits. For the year, statewide total home sales (single family homes and condominiums) were down 3.8 percent in 2010 with 103,710 homes sold compared to 107,782 sales in 2009; in the nine-county Chicagoland PMSA, home sales reached 69,010, off just -0.5 percent from 69,367 home sales in 2009.

According to the Illinois Association of REALTORS® (IAR) fourth quarter report, Illinois home sales (single family and condominiums) totaled 21,957, down 26.6 percent from 29,922 home sales in the fourth quarter of 2000. The fourth quarter 2010 statewide median home sales price was $144,000, down 7.0 percent from $154,900 in 4Q09. The median is a typical market price where half the homes sold for more, half sold for less. For the year, the statewide median home price was down 3.2 percent to $152,000 compared to $157,000 in 2009.

DELINQUINCIES AND FORECLOSURES UPDATE:  TransUnion has released its findings and analysis on mortgage delinquency for the fourth quarter of 2010, which found that the national mortgage loan delinquency rate dropped to 6.41 percent.

This statistic, which is traditionally seen as a precursor to foreclosure, reflects a decrease of 0.47 percent from the company’s third quarter reading of 6.44 percent. The Chicago-based credit bureau’s findings confirm consecutive quarterly drops for U.S. mortgage delinquency in 2010, and almost a 7 percent decline year-over-year.

SHORT SALES:  Everyone talks about all of the foreclosures on the market, but not too many people talk about all of these short sales. In fact, there are a lot of people that don't even know what a short sale is. A short sale is when a lender/bank is willing to accept less than what is owed on a property. This process is benefical to both the buyer, who in most cases purchases a home at a wholesale price, and the seller, who avoids foreclosure. These properties could be more desirable than foreclosures because it's in the owner's best interest to maintain a clean and desirable home. When negotiating a short sale it's very important that your real estate team has experience with this type of transaction.