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With Market In Limbo, Experts Wonder How Slow It Can Go

by Doug Pitorak

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According to Midwest Real Estate Data, the average selling price for detached and attached single family homes in Chicago dropped to about $185,000 from more than $200,000 in June.

Home sales are slowing down like they usually do as summer gives way to fall. However, according to Chicago Magazine 6,577 homes sold last month in Chicago, giving September 2013 a better finish than any month in 2012. The question remains: Is the recent slow down an expected byproduct of the cold-weather months or is it a warning sign of a weakening marketplace? One industry professional told Chicago Magazine he simply isn’t sure.

“I’m still on the fence about whether [the market] will slow down more,” Gary Lucido of Lucid Realty said.

Chicago’s market was booming in late spring/early summer, making the sudden slow down a little surprising.

According to Midwest Real Estate Data (MRED), the average selling price for detached and attached single family homes dropped to about $185,000, down approximately $20,000 from its 2013 peak in early summer. The average listing prices for these properties declined with selling prices between July and August, but then something interesting happened. Listing prices did not dip between August and September – the time span with the biggest drop off in selling prices to approximately $185,000 from nearly $200,000. Instead, listing prices sprang up to about $220,000 from approximately $210,000.

As Chicago Association of Realtors President Matt Farrell indicated to Chicago Magazine, it’s possible that agents and sellers were caught off guard by the market changes, especially considering the encouraging spring and summer.

“You looked around and wondered, is it just my office, our location?” Farrell said of the slowdown.

Industry professionals and their clients have no choice but to move on to the next month and see how the market shakes out.

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