Ok – so if you were selling a property one year ago… it’s official according to the median and the stats…. . You will have to (on average) lower your price 16.3 % to be in sync with the market.
Well… not so fast. Real estate is HYPER local. So don’t read too deeply into this–know that the 16.3% drop was there… but then go deeper. There are short sales and foreclosures taking up 30 or 40% of those sales pulling down the averages … and thus there are 30 % above those averages– some well above. But one thing is true. You have to price well–and be the BEST value out there to get that buyer.
Value is two things. One is price. The other is how it shows. How it shows means many things–staging, condition… etc.
Finding that balance of where to price right to get highest interest and drive value up is a per-property dynamic.
N’hood by N’hood housing and Housing Type by Housing Type. Things don’t compare and hold true the same in Wicker Park as they would in Pilsen or Bridgeport.
Obviously Wicker Park is not Pilsen. But Pilsen is way down off it’s old 2006 median further than Wicker Park is down it’s 2006 median. So as you go looking for a deal don’t try to buy what everyone else is buying. Find the nitch that is slow/not selling.
Multi units south are dead. Dead and dropping wildly still.. The financing on multi’s has dried up and so seller’s who need to sell are cutting real deals… beneath what a single family home would have dropped off in the mid range market (400 to 800k).
Fact: Condo’s in Wicker Park are down much more than Single Family homes in Wicker.
Fact: In Pilsen Single family homes that are turn key haven’t dropped off the median as much as a home that needs a 203k /rehab loan.
Let’s get specific to you property and your n’hood. -Phil Buoscio
In the Chicagoland Primary Metropolitan Statistical Area (PMSA), home sales (including single-family and condominiums) totaled 21,298, up 2.4 percent from 20,802 home sales in the third quarter of 2008. The Chicagoland PMSA third quarter median home sale price was $205,000, down 16.3 percent from $244,900 in the third quarter of 2008. – IAR STATS Report Nov 10, 2009.