California Home Prices Rise for Third Straight Month – Any Relevance to Chicago?
California Home Prices Rise for Third Straight Month – Any Relevance to Chicago?
CA MEDIAN PRICES INCREASE 4.2% IN MAY VERSUS APRIL – BUT STILL NEARLY 31% DOWN FROM MAY 2008!
According to many Real Estate Experts what happened to the Real Estate Market across the state of California foretold the downward spiral of home prices and overall home sales across the country.
Now however California Home Sales appear to have turned a corner. In May the Median Sales Price of a CA home increased to $267570 – up over 4% from April according to the California Association of Realtors as reported in today’s Wall Street Journal by Reporter Stu Woo.
The California Inventory of Unsold Homes also continues to fall. Today experts calculate a 4.2 month supply of homes unsold versus 5.6 months supply in April and 8.7 months of supply in May 2008. However the Realtor Association calculates median home prices are still 30.4% lower than they were this time last year.
Will this CA turnaround predict a similar turnaround in the Chicago Real Estate Market?
Here in Chicago in the North and Northwest Side Neighborhoods our Team serves frequently average home prices have see-sawed the last few months between $250000 and $295000 – considerably below the mid-$300’s average of mid-2006. Inventory levels of homes for sale still stands at over 15 months in these same neighborhoods – although it pushed the scary 19+ month level as recently as six months ago – and at 15 months is still by any reasonable assessment – very high!
Track Chicago Real Estate Trends and Stats via our Chicago IL Stats Pack Archives via our Chicago Real Estate Blog BlogChicagoHomes.com.
Back to the California numbers some feel that one of the reasons for the turnaround in median prices is the fewer foreclosed properties with their heavily-discounted market prices currently headed to market. But CA prognosticators are wary as the state has a very-high 11.5% Statewide Unemployment Rate (IL by comparison had an Unemployment Rate of a still high 10.1% in May). The state may need to trim up to $10 Billion of state spending and the resultant loss in jobs to partially close a massive $24 Billion budget shortfall.
Across California over 556500 homes were sold in May – up 35.2% from May of last year. Sales in many Chicago Neighborhoods especially those closer to Downtown Chicago and The Loop is also surging – especially in areas with high concentrations of young professionals many of whom do not need to sell their current home or condo in order to buy a new one.
The decision to buy – a smart one right now? Perhaps if as many feel median prices are nearing a possible bottom.
DEAN MOSS & DEAN’S TEAM CHICAGO
