Tuesday the National Association of Realtors (NAR) released sales numbers for February and nearly everyone was surprised. Expectations were for another reported loss in sales, but nationwide sales rose 2.9% from January to February, the first rise in sales in seven months! 

 

The downside to this good news was that, although volume increased, prices decreased. The NAR also reported national real estate prices declined 8.2%, the largest drop on record.

 

Although some people are saying that the market has bottomed, it seems the general feeling is one of cautious optimism. These numbers show that seller’s are finally accepting that the market has changed and their house may not be worth what it was a year or two ago. The low interest rates are still attractive to buyers and the tighter lending restrictions aren’t necessarily a bad thing for sellers. Yes the tighter restrictions will keep some buyers out of the market but the ones that are able to get a loan are able to because they have good credit and money to put down. Translated, that’s a strong buyer.

 

Locally, the nine county Chicago area had an increase in sales volume of about 10% and Illinois as a whole, about 15%.  Let’s hope that March can continue the up tick.