Austin's RN area UP 38%

River North Area Market Report

Sales up 38%

Inventory down 14%

The $200k to $400k market continues to be the dominant driving force of the marketplace with homes in the higher price points staying relatively consistent with previous months. Bottom line: $200k-$400k at a normal market, above that remains a buyers’ market (remember 4-7 months of inventory is considered normal; above that a buyer’s market; below that, as sellers’ market..For a detailed analysis click on the link below.

RN Market Report CLICK HERE (Excel format)

The tax credit program has ended with closings by June. The question is whether this program has started the ball rolling or was merely a quick fix. July’s report should tell us what the real market is doing. We have had very few people shopping for homes specifically because of the tax credit program; thus, we may likely not see a decrease in sales in the $200k to $400k range.

It is quite nice to have positive figures, but we are far from seeing a recovered market when comparing back to 2006 (see chart and graphs). The key will be real job growth. For the first time in a couple of years, we are starting to see actual movement in that direction. So hire someone!

The major shift in the market last month is the high end lease market. Last month, FNMA has restricted purchasing from those who have had short sales in the past two years. Being in a position where one cannot buy, they are leasing, causing a strong market for the landlord where we are seeing multiple lease offers. In time, the portfolio market in the banking industry will rebound helping such buyers. We are in a Landlord’s market.

Those price ranges with a very high month’s of inventory number can be a bit misleading as a couple of good months can change that number dramatically. High-end finish detail, view, and privacy are the big selling features. If you have 1-3 of those your odds are much greater than the chart numbers.