The New Normal

The New Normal Feeling
A Bit More...Well...Normal

Over the last few years, there has been a lot of talk in real estate circles about "the New Normal." At first, the New Normal meant the days of double-digit price appreciation were over. Then the financial crisis hit, and suddenly the New Normal became a barrage of bad news that seemed to never end. Eventually, the economy started to regain its footing, the Housing Tax Credit took hold, and the Chicago real estate market enjoyed a rally through the spring of 2010. Today, the tax credit is gone, and while trouble spots remain, the general sentiment is the worst is behind us. Finally, the New Normal is starting to feel a bit more...normal.

A number of data points support the trend toward normalization. Home prices as tracked by the Case Shiller index have returned to the historical trend line, and April marked the 12th straight month of improvement in the Chicago index. Though the data still shows a year-over-year price decline in the city, the fall-off has slowed dramatically. The inventory picture is also far more stable with a 10.4 month supply of homes on the market - a reduction of about 50 percent since June 2008.

The city housing market remains challenging, but equilibrium is slowly returning, which means today's low prices and record-low mortgage rates make the next six to twelve months a prime opportunity - especially for first-time and move-up buyers.

#1 in Chicago
Yet another phenomenon that is becoming the norm is seeing @properties atop the Chicago real estate market. Through the halfway point of 2010, in the city, @properties was #1 in total transactions, #1 in shortest average market time, #1 in dollar volume sold, and #1 in market share. We continue to gain strength, add marketing programs and increase our level of service for Chicago homebuyers and sellers - all of which gives our clients a distinct advantage in the marketplace. Thank you for making @properties #1.

I'd be delighted to help you gain (or regain) perspective on the real estate market in your area. Please feel free to contact me anytime. And if someone you know is looking to buy or sell a home, remember that I always appreciate your referrals.

Dave Straub
Realtor,@properties
Illinois Licensed Real Estate Salesperson
Member, NAR, IAR, CAR, MLS
773.255.3180 DIRECT