Sales of new and resale condominium fell in September around the North Shore. It was the second straight year of declining sales in the neighborhood. Prices plunged more than 17 percent as demand for the most expensive units dropped during the month.

According to data from the Chicago Association of Realtors, a total of 124 condominiums were sold during September around the North Shore, down from 136 units sold during the same period last year. However, the drop in sales was much less pronounced than a year ago, when sales were off by 32 percent.

Demand for the most affordable units soared during the quarter. 60 units were sold for less than $250,000 in September, up from 44 units sold in that price range a year ago. Demand for the condos priced over $1 million fell by nearly 50 percent during the month, with just 6 units sold in that price range.

The drop in demand for the highest priced condominiums led to a pronounced drop in the average sales price during the month. The average sales price in September reached $308,010, down 17.2 percent from the same period a year ago. This is good news for homeowners and developers with affordable North Shore Chicago Condos on the market.

Technorati Tags: North Shore Chicago Real Estate, Chicago Condos, North Shore Chicago Condo Sales

It hasn’t been the best week for the economy. Dismal news from the financial sector has dampened spirits in many sectors. However, the real estate market nationwide continues to be one of the hardest hit areas of the economy by the recent upheaval in the credit market.

According to a report from the Commerce Department, August sales of new single-family homes fell by 11.5 percent. The adjusted annual rate for 2008 sales hit 460,000 in August, well below the 508,000 units forecast by economists. It was the lowest annually adjusted rate seen in more than 18 years nationwide.

Prices were also down sharply during the month. The average sales price of a new construction single-family home fell by more than 6 percent to $221,900 in August, down from $236,500 a year ago.

The drop in sales led to a new increase in the market supply of new construction homes nationwide. The current market supply based on August sales now stands at more than 10 months. This could lead to more discounts by developers looking to capture the interest of buyers. Buyers on the North Shore Chicago Real Estate market could also start to see some great deals in communities around the region.

Technorati Tags: Chicago Real Estate, North Shore Chicago Homes, New Construction Homes For Sale

In what many have considered one of the largest transfers of debt in the history of the world, plans continue for a $700 billion bailout by the federal government. The plan calls for funds to buy bad mortgage debt, which could have an even more immediate effect on home owners around the North Shore than the previously announced bailout of Fannie Mae and Freddie Mac.

It is hoped that the purchase of bad debt on company books around the nation could work to reactivate the credit market. Credit markets came to a virtual standstill last week as Lehman Brothers announced its bankruptcy and the federal government stepped in to save AIG, the nation’s largest insurer.

Buying up bad mortgage debt could give a lifeline to homeowners in trouble. However, details surrounding the terms for refinancing have not yet been confirmed by the Bush Administration. One guaranteed result is that many businesses that thrived on poor management and risky investments will also be given a new lease on life. There is no doubt that this issue will be hotly debated both in Congress and on the campaign trail in coming weeks. The effect of such a bailout remains to be seen for the North Shore Chicago Real Estate market.

Technorati Tags: Chicago Real Estate, North Shore Chicago Real Estate, Chicago Homes For Sale