Chicago-area home sales soar in October
By: Staff Nov. 23, 2009
(Crain's) — Chicago-area home sales jumped by a third in October compared to a year ago, according to the Illinois Assn. of Realtors, with the group citing lower home prices, low mortgage rates and the federal tax credit for first-time buyers as reasons for the spike.
Last month’s surge compared to October 2008 was the fourth straight monthly year-over-year improvement for the metro area and by far the biggest.
Sales in the city of Chicago also rose 28.5% last month, the second straight year-over-year rise, the association said in a release Monday.
Sales rose 24.2% statewide compared with October 2008.
“October's extraordinary sales totals reflect home purchases by many buyers who were sitting on the sidelines of the housing market waiting out the economic downturn as well as more home sellers coming to terms with accurate pricing given the market conditions,” Mike Onorato, president of the association, said in the release.
In the nine-county Chicago region, 7,286 single-family homes and condominiums were sold October, up 33.3% from 5,467 sales in October 2008, the Realtors group said. The monthly year-over-year percentage gain was much bigger than the previous three straight increases of 0.3% in July, 1.3% in August and 5.9% in September.
In the city, sales rose 28.5%, with 2,012 in October, up from 1,566 in October 2008. That easily topped last month’s 5.8% year-over-year monthly increase, which was the first since May 2006.
Median prices fell again year-over-year in the Chicago area and the city, as sales of distressed property pushed down the figure. The region’s median price — where half the homes sold for more and half sold for less — was $190,000 in October, down 15.6% from October 2008, the Realtors association said.
In the city, the median price was $215,000 in October, down 18% from last year.
"The first-time homebuyer tax credit has created a great incentive for buyers on the fence who are ready to invest in real estate,” Genie Birch, president of the Chicago Assn. of Realtors, said in the release.
But the Chicago association used the release to complain about tight residential lending policies, which need to be changed to help “creditworthy homebuyers.”
Good-credit buyers are finding it “very difficult” to get financing, and Chicago Realtors would welcome banks showing more willingness to lend to good prospects, says a spokeswoman for the Chicago association. Also, various guidelines make it harder to get loans for condos in the city than for unattached single-family homes, according to the spokeswoman.
President Obama signed a bill this month extending the tax credit for first-time homebuyers and expanding it to include a smaller credit for some buyers who already own their homes. Currently, first-time buyers whose incomes qualify now can receive a credit of up to $8,000 on home purchases that close by June 30.
Last month, the average interest rate was 5.0% for a 30-year fixed-rate mortgage, according to the release.
The Illinois Assn. of Realtors' sales figures include new and existing homes. The nine-county Chicago Primary Metropolitan Statistical Area consists of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.
Insulation Goes Natural - Courtesy of "Mr. Home Inspector" Joe Schmalz
Mr. Home Inspector
Joe Schmalz
2670 Danford Way | Geneva, IL | 60134 Telephone: (630) 965-8017
Visit us at www.mr-home-inspector.com Email Us: joe@mr-home-inspector.com
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Joe Schmalz
2670 Danford Way | Geneva, IL | 60134 Telephone: (630) 965-8017
Visit us at www.mr-home-inspector.com Email Us: joe@mr-home-inspector.com
How would you like to have Free Dish Network Satellite TV?
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Mr. Home Inspector
Joe Schmalz
2670 Danford Way | Geneva, IL | 60134 Telephone: (630) 965-8017
Visit us at www.mr-home-inspector.com Email Us: joe@mr-home-inspector.com
How would you like to have Free Dish Network Satellite TV?
Go to www.get-dish-tv-4-free.com now and sign up!
Joe Schmalz
2670 Danford Way | Geneva, IL | 60134 Telephone: (630) 965-8017
Visit us at www.mr-home-inspector.com Email Us: joe@mr-home-inspector.com
How would you like to have Free Dish Network Satellite TV?
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Homebuyer Tax Credit Extended
Today, the U.S. House of Representatives voted by an overwhelming 403-12 margin to approve the Unemployment Compensation Extension Act (H.R. 3548) that included, as an amendment, the extension and expansion of the Homebuyer Tax Credit. The bill already passed in the U.S. Senate yesterday, so now it will advance from Congress to the White House for President Obama’s signature. The Administration already has signaled its support of the Homebuyer Tax Credit amendment as well as the President’s intention to sign the bill into law.
This is an historic moment for our industry as well as the culmination of more than a year’s worth of hard work and meetings with elected officials and policy makers. I want to personally thank all of you who participated in NRT’s numerous legislative calls for action — I am both proud and appreciative of how so many of you made office visits, phone calls and e-mailed your elected officials. Combined with Realogy’s instrumental efforts on Capitol Hill, I know that our grass roots outreach to Congress and the Administration truly helped make a difference on this issue.
Senator Johnny Isakson (R-Ga.), the chief architect of the Homebuyer Tax Credit legislation, made a short speech on the floor of the U.S. Senate shortly before his colleagues voted 98-0 to pass the bill on November 4th. In his remarks, Sen. Isakson made a point of thanking a handful of key individuals who were critical to the success of this bipartisan effort: Senate Majority Leader Harry Reid (D-Nev.), Senate Finance Committee Chairman Max Baucus (D-Mont.), Sen. Christopher Dodd (D-Conn.), his own lead staffer, Chris Cook, and Realogy’s CEO:
“Lastly, but not least, I want to thank Mr. Richard Smith, a private citizen, a person in the housing industry who has dedicated countless hours in the last month to help educate people on the positive effects of what we are about to do and will take place,” said Isakson.
On behalf of the entire NRT organization, I would like to personally add our thanks to Richard and Realogy for his exceptional leadership, determination and dedication to making the extension and expansion of the Homebuyer Tax Credit a reality. I think you will all agree that Sen. Isakson’s remarks are a clear validation of what we at NRT already know — that there is not another real estate company or franchisor in the world that can lay claim to such influential and effective leadership on the issues affecting our industry, and your businesses, as can Realogy.
Again, we are now one step away from this bill becoming law. Once that occurs, we will immediately update the respective brand web sites with detailed information for your sales associates and all homebuyers and sellers.
In closing, I’d like to reiterate that our voices were heard in Washington, D.C., and we should be proud that our government is taking strong action to help our industry and the economy. Having an extended and expanded Homebuyer Tax Credit available to qualified home buyers in the first half of 2010 undoubtedly will benefit our business and the U.S. economy.
Best regards,
Bruce Zipf
President & CEO
NRT LLC
This is an historic moment for our industry as well as the culmination of more than a year’s worth of hard work and meetings with elected officials and policy makers. I want to personally thank all of you who participated in NRT’s numerous legislative calls for action — I am both proud and appreciative of how so many of you made office visits, phone calls and e-mailed your elected officials. Combined with Realogy’s instrumental efforts on Capitol Hill, I know that our grass roots outreach to Congress and the Administration truly helped make a difference on this issue.
Senator Johnny Isakson (R-Ga.), the chief architect of the Homebuyer Tax Credit legislation, made a short speech on the floor of the U.S. Senate shortly before his colleagues voted 98-0 to pass the bill on November 4th. In his remarks, Sen. Isakson made a point of thanking a handful of key individuals who were critical to the success of this bipartisan effort: Senate Majority Leader Harry Reid (D-Nev.), Senate Finance Committee Chairman Max Baucus (D-Mont.), Sen. Christopher Dodd (D-Conn.), his own lead staffer, Chris Cook, and Realogy’s CEO:
“Lastly, but not least, I want to thank Mr. Richard Smith, a private citizen, a person in the housing industry who has dedicated countless hours in the last month to help educate people on the positive effects of what we are about to do and will take place,” said Isakson.
On behalf of the entire NRT organization, I would like to personally add our thanks to Richard and Realogy for his exceptional leadership, determination and dedication to making the extension and expansion of the Homebuyer Tax Credit a reality. I think you will all agree that Sen. Isakson’s remarks are a clear validation of what we at NRT already know — that there is not another real estate company or franchisor in the world that can lay claim to such influential and effective leadership on the issues affecting our industry, and your businesses, as can Realogy.
Again, we are now one step away from this bill becoming law. Once that occurs, we will immediately update the respective brand web sites with detailed information for your sales associates and all homebuyers and sellers.
In closing, I’d like to reiterate that our voices were heard in Washington, D.C., and we should be proud that our government is taking strong action to help our industry and the economy. Having an extended and expanded Homebuyer Tax Credit available to qualified home buyers in the first half of 2010 undoubtedly will benefit our business and the U.S. economy.
Best regards,
Bruce Zipf
President & CEO
NRT LLC
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