Happy to report that my silence has meant we are swamped with new buyer and seller business. However, the market, or really the climate in our Chicago Market continues to remain volatile due to reoccurring job loss, constant lending changes, and a growing buyer confusion of value.
5 years ago the driving forces that brought people to the table were a mix of 3 things:
- Low Interest Rates
- Easy to Obtain Loan Programs
- Rising Property Values which made folks feel like if they don’t buy now, they will not be able to afford a home later.
3 years ago the mismatch between seller perceived value and buyer’s market insecurity created for a confused and miscommunicated climate where both sides were stuck $thousands apart without the ability to compromise.
2 years ago the influx of foreclosed homes and growing number of short sales has turned most buyers into investors taking advantage of a bottoming market.
1 year ago the almost failed Home Buyer Tax Credit attempts to induce buyer / seller motivation which temps some buyers, and by February of 2010 becomes a driving force for a number of closed or still under contract homes.
Today…buyer and tenant activity remains strong as over the past 2 weeks our office has received over 30 new buyers and our listing activity is beginning to multiply. While this is exciting, we have also lost 2 deals due to buyer job loss prior to closing. News like this deteriorates the inner core of the hard work and emotional state of mind of everyone involved. It is unfortunate and all we can do is regroup, and take each step necessary to do it again.
What has been so amazing is the level of trust, kindness and patience our clients display in tough and tougher situations. After all, a broken contract is not the end of the world, and although a set back and lack of closure, it’s still not as difficult, as to what the buyer may endure, by losing the financial stability to support their family.
Nevertheless, according to MRED, LLC the number of closed and under contract properties across various Illinois markets and price points has increased significantly. This year has also finalized hundreds of short sales which hung for their dear life in 2009. Some people have expressed turn around time of Short Sales in as little as 2-3 months, which others continue to play the 6-9 month game. Finally, the sense of a bottomed market is becoming the norm and some markets have begun climbing up in value.
Don’t forget, as much as we want to use words like “Local Market”…each “Home”, “Situation” and “You” are unique and one of a kind. There is no one else in the world that is “You”, and although you qualify as a person, a man or woman, tall / short, employed or not, and although there are hundreds of statistics that can place you in a category of what “You” are likely to think, earn, wear or buy, there just simply is no way to duplicate you. Homes work the same way. If you are considering your options to buy, sell or explore, discuss it with a professional Realtor. We don’t have a crystal ball, but we do have experience with hundreds “Probable Outcomes” to help you decide on what is right for “You”.
Until Next Time…don’t forget your sunscreen and have a great weekend!