Chicago, IL - Latest Figures for New Home Sales Suggest Market Decline is Subsiding
Posted on: Feb 06, 2012 09:16:24 AM
New home sales sank year-over-year in October in the Chicago, IL market, but the percentage drop was not as harsh as September 2011, suggesting market improvement. New home sales saw a decline of 18.1% from the year earlier to 367. This followed a 29.3% decline year-over-year in September.
A total of 4,911 new homes were sold during the 12 months that ended in October, down from 4,992 for the year that ended in September.
Out of all housing sales, new home sales made up 4.7%, less than the 6.0% of sales a year earlier. Following a decline in September year-over-year, sales of new and existing homes rose year-over-year in October.
Advertisement
Pricing and Mortgage Trends
In October, the average price for new home sales was $290,886, a 15.9% drop from last year. This decline is larger than the 1.6% decline in September from a year earlier.
There was a rise year-over-year in the average mortgage size on new homes in contrast to new home prices. It increased 1.4% in October from a year earlier to $253,790. In September 2011, average mortgage size on newly sold homes saw a 4.1% rise year-over-year from a year earlier. For new home sales, the percentage of the sale price that was being financed rose 14.9 percentage points year-over-year to 87.2% in October 2011. This was another rise after September 2011 when there was a 4.6 percentage point rise from a year earlier.
Chicago, IL - Latest Figures for New Home Sales Suggest Market Decline is Subsiding
Posted on: Feb 06, 2012 09:16:24 AM
New home sales sank year-over-year in October in the Chicago, IL market, but the percentage drop was not as harsh as September 2011, suggesting market improvement. New home sales saw a decline of 18.1% from the year earlier to 367. This followed a 29.3% decline year-over-year in September.
A total of 4,911 new homes were sold during the 12 months that ended in October, down from 4,992 for the year that ended in September.
Out of all housing sales, new home sales made up 4.7%, less than the 6.0% of sales a year earlier. Following a decline in September year-over-year, sales of new and existing homes rose year-over-year in October.
Pricing and Mortgage Trends
In October, the average price for new home sales was $290,886, a 15.9% drop from last year. This decline is larger than the 1.6% decline in September from a year earlier.
There was a rise year-over-year in the average mortgage size on new homes in contrast to new home prices. It increased 1.4% in October from a year earlier to $253,790. In September 2011, average mortgage size on newly sold homes saw a 4.1% rise year-over-year from a year earlier. For new home sales, the percentage of the sale price that was being financed rose 14.9 percentage points year-over-year to 87.2% in October 2011. This was another rise after September 2011 when there was a 4.6 percentage point rise from a year earlier.
Other Market Trends
The percentage of new home sales belonging to single-family homes has risen from last year while the portion of new home sales belonging to attached units has dropped. The share of new home sales belonging to single-family homes increased from 55.4% in October 2010 to 63.5% of sales in October 2011. At the same time, the share of new home sales belonging to attached units declined to 36.5% of sales from 44.6% of sales.
The average unit size of newly sold homes slid 25.3% year-over-year to 1,879 square feet in October 2011. In September, the average size of new homes sold went from 2,388 square feet a year earlier to 2,481 square feet.
Foreclosures and real estate owned (REO) sales remained a burden on the market. Together, foreclosures plus REO sales accounted for 41.3% of existing home sales. They made up 47.9% in October 2010. The percentage of existing home sales involving foreclosures declined to 18.0% in October from 25.3% a year earlier and REO sales moved from 22.6% of existing home sales in October 2010 to 23.3% in October 2011.
Please refer to the ABOUT THIS MSA tab to learn more about geographic coverage and data availability in this market area.
Source: Housing Intelligence