What’s Going on in the Addison Illinois Real Estate Market?

The answer to that question isn’t exactly pretty. Like many other communities the Addison Real Estate Market has been brutal for sellers in 2010 and the picture isn’t getting brighter any time soon.  Of course, the picture is pretty bright for those folks who are looking for a bargain.  But for sellers or responsible mortgage payers who would like to refinance and take advantage of the incredibly low interest rates, the future remains pretty bleak.  That’s because the volume of distressed sales doesn’t appear to be dwindling.

According to the recent stats published by the Mainstreet Organization of Realtors, Addison has seen a 7% decline in average price in the year over year between October 2009 and October 2010 and another 11% decline in average price in the year prior. Of course, we know those figures don’t mean a whole lot since it’s simply an average which is meaningless because the components that make up the average aren’t defined narrowly enough- e.g. older homes, large homes, small homes, ugly homes and new construction homes all get lumped into the same bucket.  On another post, I’ll look at which segment of the market in Addison is hardest hit.

Since I’m a resident of Addison, the reality of the recession and abysmal market hits home. As someone who has been a responsible homeowner for thirteen years, never once being late on my mortgage, and never extending my LTV above 80%, I’m having trouble refinancing because of the value of my home, which has depreciated by AT LEAST 24% since I last refinanced in February 2009.  That’s factual.  There is a small part of me wishing I hadn’t been so responsible.  Anyways, back to the market stuff.

There have been 162 single family home sales ranging in price from $50k to $595k.  68 of those sales or 42% of those sales were short sales or foreclosures.  Talk about being hard hit.  The short sales and foreclosures sales are typically for homes under $200k in Addison although the highest price home sale was no exception.  The seller sold the home for $595k.  The home would have easily fetched upwards of $800k had it been located in Elmhurst.  Interestingly enough the new owners paid $595k for the home but have taken two separate mortgages in total amount of $646k.  Does that mean the buyer bought himself an extra 10% equity on the place to start with? Not bad.

If you are lucky enough to be a buyer who desires to live in Addison  the news is good.  There are plenty of deals on homes here.  In fact, with all the distressed sales, there are pre-2000 prices on re sale homes.  There are also some pretty cool opportunities in Addison new construction with prices under $500k.

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