The Chicago Tribune, quoting data from Clear Capital, a Truckee, Calif.-based provider of real estate valuation data to investors, reported that in the past 90 days, 43 percent of home sales in Cook County have been bank-owned foreclosures.
They've sold faster, too, with an average local marketing time of 53 days for a foreclosure compared with 73 days for a traditional sale. The reason for this is simple: Bank-owned properties feature sellers who are Wall-Street finance-types with no emotional attachment to the home. Their decisions are made on raw data - like square footage and mortgage-margins. They don’t put these properties in the newspaper, but exclusively online because they cannot afford to lose any more money or time. And while they reject crazy buyer offers with the flick of a pen, they also set prices squarely in the market. Sometimes, even lower than average, because they are unemotionally trying to sell the property, without ego. They price it to attract buyers and sell. So, when your neighbor’s house has been on the market for a year –it’s probably because he is trying to sell it for what he could have gotten in 2005, not 2009! Pricing something right is essential and is why you need a Realtor to help you. I cannot stress how important this is, especially in this competitive market.
Luckily the foreclosure picture in Norridge is a lot better than the rest of Cook County. Right now in Norridge, of the 99 single family homes currently on the market, less than five are currently bank owned. But when you combine the bank-owned with those in pre-foreclosure, it brings the number up to 15, or 15%, still less than the 43 percent in Cook County overall but enough that it has impacted home values in town.
Well I analyzed data from the last five years and discovered that prices this year are averaging 63% of its high in 2005, down to $260,217 from $410,922. Keep in mind that 2005 was the peak of the speculation frenzy, when every Tom, Dick and Harry believed he was going to be the next Donald Trump. What resulted was a price run-up that was way out of line with reality. So, while prices may be lower than they ideally should be right now, I believe the current market is closer to reality than it was in 2005.
Please analyze the chart that I put together and let me know if you have any questions or comments. Post them on this blog or email me at Chiarito@kw.com
You’ll discover that prices probably have bottomed-out and that market time has actually decreased – a lot closer to the quick market times of 2005 and 2006 than the previous two years WHEN LISTED WITH A REALTOR. For those who still attempt to sell on their own, market times are longer than they’ve ever been. Another example as to why it is essential to enlist the help of a professional.
The stats I’ve compiled are definitely interesting and can spark a lot of discussions. I look forward to helping answer your questions and helping you to sell your home quickly and for the most money possible.