I read an interesting article in an e-mail I received from the Illinois Association of REALTORS®. Sales of single family homes dropped off 2.9% compared to October of 2004. . However, the Illinois condo market has remained strong. Condo sales were up 10.2% from October, 2004.
I don’t remember condo sales outpacing single family homes. I certainly could have missed some past statistics but this surprised me. I guess with the huge price increases we’ve seen in the past 2-3 years, many first-time buyers are simply being priced out of single family homes. Or, maybe it’s that baby boomers are downsizing. Could be a bit of both.
The median home price in October went from $184,000 in ’04 to $209,900 this year, a 14.1 percent increase. However, it is predicted that with higher interest rates the market should start slowing which will also stabilize home prices. Read the full article here: IAR Housing Stats (will open a new window)
I’ve already noticed a change from the seller’s market we were seeing, with multiple offers at full price or over, to a buyer’s market, where there is more inventory than buyers. What is difficult during a transition period like this is trying to get sellers to understand the changing market and price their properties accordingly.