A noticeable spurt in real estate activity

The national media has been forecasting the future market conditions of residential real estate from many different points of view. While their prognostication is always gloom and doom (much more interesting than positive news), it must be asserted that it makes no more sense to forecast weather on a national basis than it does to forecast real estate on  a national basis.

What happens in Naples, Florida has little to do with what happens in the real estate market in the western suburbs of Chicago.

For example, let’s take a look at Western Springs IL and La Grange IL.

Over the past 30 days, there has been 18 new accepted residential real estate contracts on detached properties (houses not condos or town houses). Over the same period of time last year, there were just 4. That is an increase of 450%. Moreover, 17% of the listing inventory is under contract (20 of 117 are sold). The average asking price is $818,112.

Right next door to Western Springs in La Grange IL, the market is up over last year as well. Specifically, 15% of the active listing inventory is under contract. Moreover, the sales activity for the trailing 30 day period as compared to last year shows an 11% increase in sales activity.

On a qualitative basis, realtors report significant increases in inquiries, showing activity and contracts written.

What remains to be seen is whether this spike is just that-a spike-or a linear movement in the market.

Please note that the numbers use din this report were extracted from MLS data on 1.28.2008, well before the Fed announced the 50 basis point reduction in their key rate.

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