Homes and condominiums are still historically cheap in Oak Park, and while real estate agents are optimistic, problems still linger in the local market.
Recent news and statistics for home sales are showing mixed news for real estate sales people, who think the single-family market is ?turning the corner? but are still seeing problems with condominiums. On one hand, prices are good for buyers, but the large number of properties on the market, especially for condominiums, are creating lingering issues, agents said.
There are simply too many condos still on the market, experts say. Real estate agents judge the health of the stock on ?month supply,? which is an estimate of how long it would take to sell every since home if no new ones came on the market. Single-family homes stand at about eight months. At this point last year, the supply for homes was at almost 18 months, said Roz Byrne of RE/MAX In The Village in Oak Park.
?That?s not bad because six months is the dividing line between a buyer?s market and a seller?s market,? Byrne said. ?But for condos in Oak Park, it?s at 22.9 months. That?s nearly two years to sell all the condos on the market.? Last year, multi-family units were at 27 months, Byrne said.
Home prices have dropped slightly, while multi-family units have risen a touch. So far in 2011, single-family homes have sold for an average of about $361,000, compared to $370,000 in 2010, according to statistics from real estate agents and the village. Condominiums and townhouses have sold for about $176,000, compared to about $172, 500 in 2010.
Prices are still way down overall. Before the housing market collapsed, the average house in Oak Park sold for $525,971 in 2007, while town houses and condos cost an average of $273,974, according to Midwest Real Estate Data.
?Single-family is showing signs of life, but the condo market is still struggling with oversupply,? said Michael O?Neill, president of the Oak Park Area Association of Realtors.
Through the first four months of 2011, 80 single-family homes, compared to 73 in the first four months of 2010. For multifamily units, there have been 50 sales compared to 70 from last year.
John Haagenson, an agent with Better Homes and Gardens Gloor Realty in Oak Park, said problems remain in the market, but he is optimistic.
?The spring market took awhile to get started, mostly because the weather has been so nasty,? he said.? ?(With the weather beginning to warm) we have a lot more activity now than we did at this time last year. While the spring market got a late start, spring and summer should be pretty strong.?
Oak Park Housing Programs Manager Tammie Grossman said it is difficult to read too much into the caparison between this year and last because there was the first-time homebuyer tax credit in the first half of 2010, which drove up sales. She said it is not an apples-to-apples comparison, but she is optimistic so far, especially since activity has been up since 2009, the last year before the tax credit.
?I will be really interested to see the numbers after June,? she said. Since the tax credit expired in June last year, the second half of 2011 will be more accurate, because she can compare them to the second half of 2010, when there was as no tax credit.
But agents said they are more optimistic for the single-family home market.
Agents said one of the biggest problems involves tight loan procedures for condos. While prices are low, many underwriters are asking for 20 percent down payment. The reason , agents said, is condos are higher-risk because there can be problems with common areas like the roof where the liability cannot be linked to a single owner, adding an ?extra-layer of governance.?
Haagenson said FHA-approved buildings require less of a down payment, but many buildings aren?t certified.
?There are not enough buildings that are FHA approved, and in this economy, people don?t have a lot of money to put down,? he said.
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