Archive for July 2011

Chicago Home Prices Finally Bounce

After 8 straight months of declines single family home prices in Chicago finally bounced up according to the May Case Shiller home price index for Chicago just released a few minutes ago. In addition, condominium prices in Chicago also continued their upward bounce that started with the April release. This could very well be the... Read more »

Realtor Association Cleans Up Their Housing Data

Today, and two days after the originally scheduled release date, the Illinois Association of Realtors announced the June home sales statistics for Chicago, the greater metro area, and all of Illinois. The reason for the delay was that the IAR was working on getting to the bottom of some pretty serious data errors that led... Read more »

Chicago Housing Market Forecast To Fall Further In 2nd Half

Clear Capital recently came out with their 2nd half housing market forecast for the major metropolitan areas and the greater Chicago area is expected to have the 4th worst home price declines in the nation. Their forecast calls for a further 5.3% decline in home prices, on top of a 3.6% decline in the first... Read more »

The US Budget Problem Explained In One Chart

This has nothing to do with real estate – except for the fact that if we don’t fix our budget deficit problem in Washington mortgage rates will eventually rise to 20%. For quite some time I’ve been wondering about just how big of a problem the major entitlement programs are for the country. I’ve periodically... Read more »

Once And For All...Bank Owned Properties Are Not Discounted 35%

Periodically we read statements like this in the media: “RealtyTrac reports that REOs sold during the first quarter carried an average markdown of 35 percent compared to the price of homes not in foreclosure.” That statement is from an article recently appearing in DSNews and it turns out to be extremely misleading if not downright... Read more »

Does Zillow Determine Your Net Worth?

A short while ago Zillow revised the algorithms that power the home value estimates (cleverly called “Zestimates”) on their Web site. According to a recent Wall Street Journal story “the overall margin of error for Zestimates dropped from 12% to 8.5%, not far off the typical 5% margin of error that most home appraisers claim.”... Read more »

Chicago Foreclosure Acitivity Remains "Low". Good News?

Once again the foreclosure activity for Chicago has been reported by RealtyTrac and it shows a continued subdued level of activity. That’s on a relative basis. Relative to 2009 and 2010, which were pretty awful. See the graph at the bottom of this post. So you would think that’s good news but RealtyTrac voices a... Read more »

R Kelly's Olympia Fields Home In Foreclosure

In yet another example of R Kelly’s excellent judgment his Olympia Fields home at 1 Maros Ln is in foreclosure proceedings. The Lis Pendens was actually filed back on June 9 but the story just hit today. Perhaps the filing was only recorded more recently. Yeah, this is the guy who was acquitted of one... Read more »

Realtors Get 3 Years Of Meaningless Home Price Data Wrong

Yeah, the numbers they got wrong don’t really mean anything anyway so you really don’t need to read this post. What I’m talking about is the median home sales prices that the Illinois Association of Realtors religiously (does this mean they are going to hell now?) reports on. As I’ve pointed out before median prices... Read more »

The Bright Spot In The Chicago Housing Market

As I mentioned the other day there is one bright spot in the data for the Chicago real estate market despite low overall sales. Inventory levels, as measured in months of supply, are actually falling and this should support home prices with buyers forced to bid on a restricted supply. Check out the graph below... Read more »