Chicago Real Estate Market Decrease is Slowing

chicago market on the mendSome more good news for Chicago new home builders: the most recent home closings report from Builder Magazine shows that in May, home closings fell year-over-year, but that the decrease was less than in April 2012.
These numbers are a sign that the Chicago market may be strengthening. In May, the average price of a newly sold home also rose 2.4 percent year-over-year to total $365,814 per unit.
New home prices weren’t the only factor to increase. Average mortgage size increased year-over-year as well. In May 2012, the average mortgage was $277,269 which is a 5 percent increase from the previous year.
Another notable trend is that closings on single-family homes increased from 49.4 percent of closings in May 2011 to 54.0  percent of closings in May 2012.
The rate of foreclosures and real estate owned (REO closings) is also slowing down. Foreclosures and REO closings made up 40.3 percent of closings, which is a slight decrease from 44.6 percent in May 2011.
Even small gains in the market can add up to big potential for change, and it is likely that home builders can look forward to continued strengthening of the industry.