Monday, June 30, 2008

In Chicago, Demand remains tepid as falling prices hurt confidence

Your guides participate in and receive a survey from our friends at Credit Suisse (formerly from Bank of America) who ask 2,500 Realtors in the US top 20 markets about what they are experiencing in the Real Estate Market.  The survey shows trends on a month by month basis.

In Chicago for the month of May traffic remained unchanged at weak levels from April.

Agents said buyer confidence remains very weak as many potential buyers are overwhelmed by the combination of continued price declines and a deteriorating economic outlook. According to one agent, “People are waiting for prices to go down further, as they are convinced it will get worse before it gets better.” In fact, one of the only agents satisfied with current traffic levels dealt solely with foreclosed properties and has benefited as an increase in vulture buyers has accompanied rising foreclosures. We think improved affordability from a combination of lower prices and lower mortgage rates is needed before we see any sustained improvement in traffic.