Case-Shiller index shows broad drop – Chicago Sun-Times.
The title above is a link to the Case-Schiller report in the Sun-Times this morning. By and large, the data mirror what I’ve been reporting for Evanston, Wilmette and Winnetka and the North Shore – house prices are trending down. There is a large inventory, credit is still tight and sellers are reluctant to price down to meet the market. But I think there are success stories that are lost in the data which give us hope for a stronger market:
(1) There are buyers ready to buy IF THE PRICE IS RIGHT. I don’t mean prices that are drastic reductions that understate the value of a home or that imply financial distress. (2) Sellers who opt for a smart price find that strategy creates a strong value proposition relative to comparable homes. (3) These sellers get many (and I mean 30-40 in seven days) more showings and contracts within days.
So, while broad area statistics continue to trend downward, there are properties selling in Evanston, Wilmette and Winnetka.
DS
Below is a blog post from a guy I follow fairly frequently. In his post today, I thought he presented a good summary about the state of housing prices and they’re likely direction. We all suffered through Econ 101 and learned that Supply and Demand are related. Take a read at the first few paragraph’s and then through click to read more. If you like what’s here, drop me an email; I’d love to know if this is interesting to many people who visit this blog.
Why Prices Will Soften in the 1st Half of 2011
by The KCM Crew on January 13, 2011
The big question facing real estate in 2011 is which direction are home prices headed. We agree with most experts who believe prices will continue to soften for the first half of the year. Supply and demand will determine this. Let’s look at where real estate sits entering this year compared to the beginning of 2010.
Demand
1.) Last year, The Home Buyers Tax Credit was both extended to the end of April and expanded to include move-up buyers. This increased demand to some degree. However, most now believe that the tax credit simply dragged demand forward from later in the year. What took place was a surge in sales prior to the deadline and then a dramatic fall off after April. (Read more…)
Have a great day.
DS
Has now been posted on those sites - www.WelcometoWilmette.com and www.WelcometoEvanston.com. It was a mixed bag of data – some looked as if the recovery was continuing while other data suggested a slowdown. I’d suggest we use such small increments of time (monthly data) only for casual updates and look to the more stable data of quarterly reports.
If you have any questions don’t hesitate to call or email me.
DS
