Chicago Relocation

As the market goes, so goes Realogy

September 8, 2008

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Inman ran an interesting article recently on Realogy’s AMAZING $27MM net loss in the second quarter of 2008.

That included a 21% decline in home-sale transaction sides for it franchises and 19% for company owned locations.  Quite a drop!  The only thing that went up was its REO (bank owned) properties.  Their transaction volume doubled to approximately 10,000 units.  How does this affect anyone considering a relo into or out of Chicago?  It shouldn’t reflect negatively on Realogy – As the market goes so they go.  They’re a good example because given their size their numbers reflect the reality of the market.

The good news is Chicago’s Real Estate numbers aren’t nearly as bad.  We have a strong local economy and prices never skyrocketed like they did in many other markets.  But by definition, you have to move from SOMEWHERE ELSE when you relocate, so the trickle down effect has hit the Chicago relocation market, to some extent. With an 11 month supply in many areas of the city (three to six is considered a stable market), sellers are still going to have to price their homes competitively in popular areas like The Goldcoast and Lincoln Park if they want to stay ahead of the market and get their places sold.  That’s why pricing is more crucial than ever these days, in Chicago as in everywhere else!