Chicago Relocation

Is a little optimisim a good or bad thing?

December 31, 2009

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I just ran over an interesting stat from  Zillow’s quarterly homeowner confidence survey which showed that an estimated 74% of homes nationwide had lost value in the last 12 months, but only 51% of those homeowners polled thought THEIR home had lost value.  Seventy-two percent of Midwest homes had lost value vs. a 51% perception.  If we extrapolate that to the luxury market, there are millions of dollars of imaginary money floating around in the minds (and on the listing sheets) of certain Chicago homeowners - about 21% to be exact!  How can we tell which ones those 21% are?  Well, average days on market (DOM) is a sure giveaway, as would be a slow, trickling policy of tiny price reduction after tiny price reduction. 

Don’t chase the market – Even in the Chicago Luxury Market the price is set daily by the demand. 

Another survey released by advertising J. Walter Thompson shows that, interestingly, optimisim in The American Dream seems to increase as our paycheck grows.  While about 2/3 of Americans with household incomes under $40,000/year believe in “The American Dream” - A full 3/4 of those earning $40,000-$70,000 and 82% of those with an income passing $70,000 a year seem to share that belief!  No stats on Chicago’s uber-rich, but I would bet that they’re more optimistic than any of us.  Especially those in that 21% who think their house has not declined in value!


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