Another read on home price came out Thursday, and it offers a glimmer of hope about Chicago-area home prices.
The good news? In February, local home values on single-family homes were relatively flat, down only 0.4 percent from a year earlier, according to data provider CoreLogic.
The bad news is that number doesn’t take into account the effect of foreclosures and short sales in the market. Add those sales and Chicago-area home values fell 10.4 percent in February on a year-over-year basis. With the inclusion of distressed sales, home prices for all of Illinois fell 11.1 percent in January, making it one of the top five states for home price depreciation.
Nationally, February home prices declined for a seventh consecutive month from their year-ago comparisons, falling 6.7 percent. However, year-over-year prices fell 0.1 percent, excluding distressed sales.
“When you remove distressed properties from the equation, we’re seeing a significantly reduced pace of depreciation and greater stability in many markets,” said CoreLogic chief economist Mark Fleming in a news release. “Price declines are increasingly isolated to the distressed segment of the market, mostly in the form of (foreclosure) sales, as the stock of foreclosures is slowly cleared.”
Change we can believe in!
“Core” inflation and now “core” home prices. Great.
If you exclude short sales and foreclosures, than sales are truly dismal as they account for 50% of all home sales.
how can you exclude foreclosures and short sales?
The Banks don’t do that when appraising value on approving a loan, or when denying you a re-fi on your current property.
It’s like saying, if you don’t count all the dead people, that accident wasn’t too serious!
I long to read the comments from one article where some rube doesn’t post “Change we can believe in!”.
@ab, that’s just like the unemployment statistics that don’t include people who have given up looking for work (or people who no longer qualify for unemployment benefits). It’s utterly ridiculous!
Yet obama, his administration, and the liberal media keep telling us things are getting better, but for whom is the the question?
Glimmer of hope? Excluding the only homes that sold in February prices were flat. Well, the majority of homes that did sell were distressed sales and will continue to bring down pricing otherwise non-distressed homes will never sell.
Basically, until first time buyers buy up the distressed homes there will be no movement on non-distressed sales unless they drop their prices to compete, which will do what?…drop home prices even further.
The market will not start heading in the right direction until the banks get rid of these properties. Why they sit on these short sales is beyond me. They can do a lot more with cash than a hard asset. Basic principles.
Get a clue when you write these articles.
Falling house prices: it’s what you get when there’s more people moving out than moving in. There’s lots of housing available for cheap in Detroit!
Yet this can still be titles a glimmer of hope…
Reality avoidance
My property has lost 28% in 3 years. I’m walking away once it his 30%…
@sean…..fully agreed. It’s gonna be a long 5 more years for those folks, isn’t it? Apparently, and mercifully, considering the red/blue state distribution of the last election, there’s not too many of “those folks” left. Good thing too, for when you’re unning around like an uneducated chicken little touting “go get your guns” I’m afraid there’s not much can be done to save those poor folks. My advice: just leave them and their tired, boring old non-collaborative mantra’s alone. They’re nearing extinction anyway.
When you take the stink out of poop it doesn’t smell to bad either. Problem is nobody has figured out how to do that yet.
Prices continue to fall ??? Duhh With PINOCCHIO at the helm raising the income tax who would want to come to Illinois to create any demand on the supply and anyone able to leave is on the run
Well, Quinn & the Illinois Dems tax policies won’t be keeping businesses in Illinois. Expect property values to drop even further:
“A new Illinois tax law forced online coupon company FatWallet Inc. to move 54 workers to Beloit to avoid losing large clients such as Amazon.com and Overstock.com.
The Rockton, Ill.-based company signed a one-year lease to occupy the former Kerry Ingredients building and will be fully moved by Monday, said spokesman Brent Shelton. FatWallet, which publishes coupons for online retailers at FatWallet.com, would have lost large clients such as Overstock.com if it did not move out of Illinois by April 15, he said. The clients threatened to cut their contracts because of an Illinois law, approved in early March, that would have required FatWallet’s clients to collect a 6.25 percent sales tax for online sales.”
Source: The Business Journal – Milwaukee
Have we forgotten who got us in this mess??
Sean & 2nd Term
You are certainly correct if you believe that Illinois will spend their electoral votes on Obama once again. We lead the country in the blind stupidity of our electorate. We look for no change, no improvement, no honesty but have no problems lamenting the state of our schools or the threats to basic services for our tax dollars despite the undiminished flow of pork into the pockets of the politicians and other crooks. Wait until your little bubble bursts at the next presidential election when the majority of our fellow United States Citizens beg to differ from Illinois the “Land of Larceny.”
@jrb ‘Have we forgotten who got us in this mess??’
Absolutely not – I guess the ‘everyone deserves to buy a house’ mantra spewed by Pelosi and Barney Frank didn’t work out too well, did it?
I guess we learned a very tough lesson – not everyone in the US can afford a new home.
Please send this article to the Chicago Assessor’s Office. The city needs to do property value adjustments instead of keeping taxes based on values from the real estate boom.
How can that be? I keep here our president and his adminsitration talking about how things have improved and getting better. The job market has openned up and everything is great??????? Or is this just another one of his statemnts just like all of his campaign promises?
Factor in Condo’s it’s much worst, I lost 75% in 3 years
Obama! Detroit! Unions! Liberals! Pelosi!
I think I hit all the right-wing talking points..did I miss anything?