* Crain’s…
It’s taking a little longer to sell a home this winter, and real estate agents say one of the causes may be uncertainty over how last year’s revisions in the federal tax code will affect what individual buyers can afford to spend. […]
In Chicago and in Cook, Lake and Will counties, the average time a home is on the market before selling has been longer in the first two months of 2019 than during the same period in 2018, according to monthly data posted by the Chicago Association of Realtors on March 18.
Only in DuPage County is the average time on the market shorter than last year. The difference there is three days, to an average market time of 97 days.
The lengthening of market times has not been dramatic. In Chicago, at an average of 104 days, it’s taking six days longer to sell. In Will County, it’s taking five days longer, to an average of 90 days. But the housing market has been in delicate condition in recent months, with sales volume dropping and home prices slowing, which puts a spotlight on negative movement in any indicator.
* Bloomberg…
The Washington, Dallas, New York and Chicago metro areas are experiencing increases in both new home construction and maintenance spending, according to a report by property data provider BuildFax.
“It’s yet to be seen whether housing activity in these cities will eventually slow as it has on a national level or if these will be key metros to watch as the U.S. potentially heads toward an economic slowdown,” wrote BuildFax CEO Holly Tachovsky in the report published Monday.
Chicago saw the most housing activity among the 10 largest metro areas with a 19.5 percent increase in maintenance spending and 60.2 percent climb in new construction. The growth might be related to the city’s strategic five-year housing plan to fight affordability concerns in the region, according to the report.
On a nationwide level, housing data shows a different story. Single-family housing authorizations fell 5.8 percent in February from the same time period last year. Repeat declines for this metric confirm the housing market slowdown is persisting, the report said. Existing housing maintenance and remodeling volumes also continued to decline at 5.5 percent and 10.1 percent, respectively.
Maybe it’s taking longer to sell homes because of all the new construction? I dunno. But I’m not sure you can look at these two stories and make a broad judgment.
- Robert the Bruce - Tuesday, Mar 19, 19 @ 9:44 am:
Jan-Feb were quite cold this year, which could explain the average time to sell. Fewer people wanting to look.
- Montrose - Tuesday, Mar 19, 19 @ 9:48 am:
Crain’s is generally a big fan of pushing the narrative that the real estate market is struggling. It helps them push back on attempts to change taxes and fees associated with the real estate market.
- wordslinger - Tuesday, Mar 19, 19 @ 10:04 am:
–The lengthening of market times has not been dramatic.–
Buried the lede in the fourth graph. But, if you go with that lede, no point to writing the story.
Crain’s is just feeding the elephant. Gotta fill it up, one way or the other.
- City Zen - Tuesday, Mar 19, 19 @ 10:56 am:
==Crain’s is generally a big fan of pushing the narrative that the real estate market is struggling.==
For a sobering take on the Chicagoland housing market, check out Dennis Rodkin’s “This house sold for less than…” twitter feed.
- Lucky Pierre - Tuesday, Mar 19, 19 @ 10:59 am:
The 2019 forecast from Realtor.com had the Chicago metro ranked last in top 100 markets with projected sales growth of -7.4% and price growth of -1.9%
https://www.realtor.com/research/2019-national-housing-forecast
- Rich Miller - Tuesday, Mar 19, 19 @ 11:04 am:
===For a sobering take===
It’s more of a sobering take on the outlandish prices some people paid for their houses.
- Blue Dog Dem - Tuesday, Mar 19, 19 @ 11:17 am:
The housing market and widget business are joined at the hip. I can attest to the national numbers. Regional pockets of strength there will always be. Predicting cycles has never been a strength. But i can tell you that there will be good times followed by not so good times.
- Lucky Pierre - Tuesday, Mar 19, 19 @ 11:38 am:
That is why economists have two hands
- Montrose - Tuesday, Mar 19, 19 @ 12:58 pm:
“It’s more of a sobering take on the outlandish prices some people paid for their houses.”
Exactly. I was hoping that City Zen’s comment was snark.
- City Zen - Tuesday, Mar 19, 19 @ 2:11 pm:
==It’s more of a sobering take on the outlandish prices==
No doubt, but not every house he tracks is MJ’s unsaleable estate.
- anon2 - Tuesday, Mar 19, 19 @ 4:41 pm:
=== Chicago saw the most housing activity among the 10 largest metro areas with a 19.5 percent increase in maintenance spending and 60.2 percent climb in new construction. ===
This conflicts with the GOP mantra about people fleeing the Madiganstan in droves and the population plummeting.