Joe Zekas visited a local brokerage’s sales meeting this morning and brought back a market report delivered to agents from the brokerage’s president and CEO. One of the report’s several bullet points focused on the outlook for Chicago-area sellers in 2011:
In spite of the improving real estate market, sellers would be well advised to be priced “at the market.” Inventories and absorption times increase significantly as the price point increases. Of those properties that go under contract, 75% do so in the first 90 days on the market. Short sales and foreclosures will continue to depress prices for the next couple of years, and they are also negative factors that appraisers have to take into account. Consumer confidence, driven by high unemployment and concerns about the overall economy, continues to be a factor. Condition is also very important, as buyers know that they can afford to be picky. As the saying goes, “It’s a beauty contest and a price war.”