Over the last week a number of Chicago area real estate statistics came in that reinforce the fact that the market here continues to deteriorate like other parts of the country. Here is a brief summary:
- 4th quarter sales for the city of Chicago declined by 29% from 2007, dropping to 1994/1995 levels. The drop was most significant for condo sales.
- December sales for the Chicago PMSA (primary metropolitan statistical area) came in 16% below December of 2007, which was already 33% below 2006. The decline has slowed somewhat in the last few months.
- The Case Shiller index that tracks home prices (much more accurately than the median prices reported by the real estate organizations and the media) shows that prices in November were down 12.5% from the previous year, are down a total of 16% from the peak, and are back to May 2004 levels.
In light of all this The Chicago Tribune ran a story today about how sellers are finally capitulating and dropping their sales prices.