Archive for March, 2009
March 31, 2009
Let’s check in on the S&P/Case-Shiller Home Price Indices (HPI).
For an explanation of how the Case-Shiller data is calculated, check out their methodology pdf. Also remember that the data released on the last Tuesday of a given month is for the period two months prior (i.e. – January data is released in March).
Here are the basic Case-Shiller stats for the Chicago area* as of January:
January 2009
Month to Month: Down 1.5%
Year to Year: Down 7.3%
Change from Peak: Down 17.4% in 28 months
The following chart shows the Chicago area HPI scaled such that the September 2006 peak is 100% on the y-axis. Data on the x-axis is scaled to display the last time (pre-peak) the Chicago area HPI was at or lower than it was in the latest data (May 2003).
While November and December’s data set new records for month-to-month price declines in Chicago at 2.8% and 3.0% respectively, January’s drop blew them both out of the water. Even for those of us that have been expecting continued price declines for some time, the speed at which prices are falling is surprising.
Great news if you felt like you were “priced out” of the market in 2007, 2006, 2005, or even 2004, as the latest price data for Chicago was roughly on par with mid-2003.
Here’s a chart of Case-Shiller HPIs for all the markets that Redfin serves, so you can compare the Chicago area’s performance to other areas across the country:
And here’s our final chart, in which we line up the peak Case-Shiller HPI value for each of Redfin’s markets, so we can see how long each market has been declining, and how much it has dropped from the peak.
Just a few months ago, Chicago’s post-peak performance was tracking fairly closely to the relatively mild price drops seen in Boston. Now it is more on par with San Diego, which has seen a total drop in excess of 40% so far.
*[Case-Shiller defines Chicago as the entire Chicago-Naperville-Joliet, IL Metropolitan Division, which includes all of the following counties: Cook IL, DeKalb IL, Du Page IL, Grundy IL, Kane IL, Kendal IL, McHenry IL, and Will IL.]
March 30, 2009
We did some research on real estate blogs in and around Chicagoland. Here’s a list of our favorites:
Best Real Estate Blogs
- Yo Chicago tracks new urban developments with a focus on new construction.
- Crib Chatter “Flips, Foreclosures, McMansions, New Condos: The Dish On the Chicago Housing Market.”
- Chicago Deal Estate Chicago Magazine’s online real estate news featuring articles on home values and new listings.
- Chicago Apartment Therapy decorating tips for when you find the perfect place.
- Lee Bey: Urban Observer “features observations, photography, video links and all things dealing with Chicago’s built environment.”
Best News/Neighborhood Blogs
- Chicagoist keeps you updated on news, food, events, art.
- The Local Tourist for Chicagoans who want to “experience the fascination of a tourist and feel the comfort of the local.”
- Uptown Update news and commentary in the Uptown neighborhood.
Good Agent Blogs
What did we miss? What do you read to keep on top of the Chicago real estate scene?
March 27, 2009
If you missed out last Sunday, you have another chance to see this great condo in Logan Square located in the center of the neighborhood. Get all the details on the home and the area from the seller’s comments.
Open Sunday, March 29 from 12p.m. – 2p.m.
2734 N Kimball Ave #3 $285,000
March 25, 2009
Let’s take our monthly look at which cities and towns have the most price reductions.
The following charts show the percent of MLS, FSBO or REO listings that were price-reduced at some point before leaving the market (either sold or removed unsold from the market) in the past 90 days. Cities/towns or neighborhoods in which the number of homes taken off the market was too small to provide believable estimates are excluded from ranking.
For those that are interested, I have uploaded the full data set in Excel format here. The downloadable Excel file also includes charts showing the top ten cities/towns/neighborhoods with the least reduced-price listings.
First up are the top ten cities with the most price-reduced listings:
Of the 229 cities/towns we ranked in the Chicago area this month, 125 (55%) had price-reduced ratios of fifty percent or more. The top four cities this month all carried over from last month, although not in the same order. Last month’s #1 Olympia Fields dropped to #2, with Boulder Hill moving from #9 last month to #1 this month.
Getting a little more granular, let’s look at the top ten Chicago area neighborhoods for price reductions:
Of the 100 neighborhoods we ranked in the Chicago area this month, 27 (27%) had a price-reduced ratio of fifty percent or more. West Rockford, North Park, North Center, and East Side Aurora all carried over from last month. These are the neighborhoods where you might want to look for sellers that are more anxious to sell.
We’re still seeing a degree of consistency in which neighborhoods and cities have the most price reductions. Are sellers in these locations just not very good at finding the right market price in the first place, or are they so anxious to sell that they drop the price early and often? Either way, the regions with the really high percentage of reduced-price homes are probably a good place to go bargain-hunting.
March 20, 2009
If you’re looking at Logan Square condos, you might want to check out this charming two bedroom, two bathroom condo located in the heart of the neighborhood at 2734 N Kimball Ave #3 that we recently listed.
Open House Date & Time: Sunday, March 22, 12-3pm
Seller Comments
Coffee Shops of Choice
Logan Square has the standard Chicago Starbucks (2759 W Logan Blvd), which has a great patio; however, New Wave Coffee (2557 N Milwaukee Ave) is right around the corner from our condo and is a great independent option. The coffee is good, the café-style food is yummy and the atmosphere is very fun!
Favorite Restaurants in Logan Square
The restaurants in Logan Square are amazing and there is quite a variety:
- Lula Café serves organic dishes and only purchases from local farmers.
- Buena Terra (35 N California Ave) features delicious authentic Italian fare. The ambiance literally makes you feel like you are in Florence.
- El Cid (2645 N Kedzie Ave) is a great Mexican place with delicious margaritas, a great menu and probably the best patio in Chicago.
- Orbit Room is a great place to go for good bar food with some surprising, pleasing options and great specials. It also serves as a great night spot for drinks and music.
There are many others within a very short distance: Dunlay’s on The Square, Rustik, Logan Bar and Grill, etc.
Favorite Places to Go
- Provenance Food and Wine is a great little wine store. They have free tastings every Saturday and wines are delicious and not overpriced! The wine of the month club is a great value and you will always get a good solid wine or beer suggestion. No bottle-price pushing here!
- The summer farmer’s market – Over the years we have seen the stands multiply and all offer great produce at good prices. It has been such a hit that the city is building a more permanent structure for the event.
- Wolfbait & B-Girls is a fantastic women’s boutique, which only sells local designs. They also create their own apparel in-house, and serve complimentary Intelligensia coffee on Sunday mornings!
- The Burlington (3425 W Fullerton Ave) is a great-local watering hole. It’s walking distance from our place and has a nice vibe. There is usually a DJ and they have a great late-night bar.
- Green Eye is one of our favorite Logan Square bars. It’s always a good time.
- Small Bar (the original, not the Wicker Park version) is yet another good classic, solid late night activity.
- Azucar has great tapas, delicious sangria and a lively atmosphere. Its owned and staffed by two Logan Square natives who were sick of going to other neighborhoods for tapas… so they solved the problem by opening their own place a few years ago!
- The rest of the city is also conveniently close, so really… the options seem to be endless. It is so easy to stay connected with things and people in other parts of Chicago or even beyond due to the close proximity to the Kennedy expressway.
Great Deck and Master Bedroom
Our deck is a great feature to the condo. Not only is it on the top floor but it provides a great space for entertaining and enjoying the summer months! We also love the master bedroom suite.
Perfect Location to the Train
The condo is also REALLY close to the train (Logan Square Blue Line stop). The main entrance is just around the block and the cardholder’s entrance is less than a block (Spaulding and Milwaukee). The most ideal situation about the Logan Square train stop is that the stop is underground, so you get the convenience without the sound, foot traffic and snow.
Our Favorite Romantic Spot
- Buena Terra – feels just like a little restaurant in Italy!
- Weekend mornings in the neighborhood are pretty romantic in general. You can get brunch, head to the farmer’s market, get some coffee and hang out on the boulevard and read, talk and enjoy the day!
What We’ll Miss the Most
Where do we start – the restaurants, the shops, the fantastic, dynamic culture! Logan Square is a great neighborhood that has turned into a great place to live, but did so without displacing culture and diversity. Logan Square has played a huge role in the Chicago green movement–we’ll miss being a part of it.
Logan Square has the best balance of an urban environment that still has green space and trees! The people are really nice too. There is a great neighborhood feel and we can’t complain at all about the people in our building, who have become wonderful friends. Once you live in and explore Logan Square, you will never want to leave. It’s a place that you can truly be proud to say you live.
March 17, 2009
Let’s have an update on where buyers are currently getting the biggest discount off the asking price. Our goal in sharing this data is to help potential buyers to know which neighborhoods are softer in terms of sale price discounts off list price, to better equip you when making an offer, and help you know where to look for potential bargains.
In the chart below, we have taken all sales data from the last two months in Redfin’s Chicago service area and sorted it by zip code. We calculated the overall difference between the sale price and the list price. Note that this reflects the final list price, after all price drops in the listing. Any zips with fewer than ten sales are excluded from the top and bottom ten rankings, but interested readers may download the full data summary in Excel format (xls).
For a quick look at where a given zip code is located, just type it into the Redfin search box, or drop by the handy USNaviguide.com zip code map.
Here are the top ten zip codes with the largest overall discount:
The overall discount for the Chicago area shot up from 3.8% last month to 6.4% this month, indicating either an increase in the willingness of sellers to bargain with buyers, or a decrease in the skill of sellers to set appropriate prices to begin with. Last month’s most discounted zip code 60644 dropped to #13 on the list, every one of the top ten came in with discounts of over 10%. Some buyers are striking hard bargains out there.
Here are the ten zip codes with the smallest discounts:
Of the 3,697 sales we tracked in the 2-month period, 339 homes sold for more than 20% off the asking price, while 522 homes sold for more than asking.
As a whole, the trend in Chicago is clearly moving toward larger discounts for most neighborhoods. As we continue to watch this data we will be able to get a better picture of what sale-to-list discounts tell us about the overall health of the local real estate market. Once we get enough data points, we’ll be able to plot the overall discount trend on a line chart for an interesting picture of the market.
March 11, 2009
Beginning with February, Redfin is publishing monthly Chicago Area real estate stats, summarizing what we’re up to in the market, and how the market is changing. This is our first crack at it, which means we’ll only present a few numbers for February.
Market Activity
- 19,288 new MLS listings (the current total is 112,790).
- 21,358 price reductions.
- 24,675 homes were added to Chicago Redfin users’ favorites list.
Brokerage Activity
- 217 homes were toured by our clients through Redfin field agents.
- 7 people attended our monthly home buying class.
- 21 clients made offers.
- 3 clients responded to our customer-satisfaction surveys and posted an online review.
- 100% of our February Chicago Area clients would recommend Redfin to a friend.
What else do you want to know? Your comments and suggestions are at the core of our goal to better serve our customers. We’d love to hear from you. If you haven’t already, join the Chicago Redfin forum and sign up for listing alerts and our monthly newsletter. As always, thanks for using Redfin!
