Chicago prices declined at only 60% of the national rate M/M

[Henry Lazerow]

It was interesting to read the case schiller housing data released on Nov 29th which re-affirmed my belief that Chicago is unlikely to see significant price declines. Chicago month over month decrease was only .6% vs a national average of 1% this all with interest rates in the 6-7% range. While tech heavy areas which saw a stronger run up the last 2 years such as Denver fell 2% month over month and San Francisco a whopping 2.9% decline month over month. 

There are deals out there to be had right now with sellers often more willing to negotiate and I expect if rates do drop prices will quickly spike upwards as more capital starts chasing deals. Closed for a client today a cashflow 4 unit in Brighton Park for $370,000 which once cosmetic rehab done should rent in the $4800 range. 

[Henry Lazerow]

Interesting article from Redfin this morning…

Homebuyer demand is rising as mortgage rates continue to decline, according to a new Redfin report.

On Dec. 1, daily rates fell to 6.29% according to the report, a full percentage point lower than the 7.29% peak last month. With that drop, Redfin found mortgage-purchase applications grew 4% from the previous week. Meanwhile, Redfin’s Home Buyer Demand Index, which measures requests for tours and other services, rose 1.5% from last month.

Those changes in rates and demand are keeping some sellers from dropping prices as they had been recently. In the four weeks ended Nov. 27, just over 6% of homes listed had a price drop — down 7.2% from the previous week.