How The Real Estate Market Affected One Middle Class Community

year in review

I decided to write about one particular middle class community. This community is a microcosm look at the 2009 real estate market. As we look back at the year we will notice some challenges this community faces.
These challenges are not unique to this community but emphasize the struggle most communities struggled with in 2009.

Community Facts Most Recent Statistics
Number of Residents 12,359
Number of Households 4,343
Percent Owner Occupied 92%
Median Family Income $83,657
Average Home Price 2009 $394,767

The information above provides the basic information on a typical middle class community. The name shall remain anonymous for many reasons. The name is not important, what is important is how a typical middle class community is being affected by foreclosures.

2009 Real Estate Market (Information is deemed to be reliable and comes from the MLS)

Sales Type # of Active Listings # Pending Sales # of Single Family Sales
Totals 101 25 88
Short Sales 14 7 11
Bank Owned 3 0 22
% Distressed 17% 28% 38%

As we can see from the table above 17% of all active listings are either Short Sales or Bank owned properties and foreclosures represent 38% of all sales during the last year.

According to Record Information Services, a Real Estate Service that searches public information and tracks foreclosures in all counties in Illinios, there were 42 homes in this community that went into foreclosure.

Only half of these homes 22 have come back on the market and have re-sold according to the MLS. Another 20 homes are waiting to come on the market.

If all of these foreclosures were to enter the market at the same time the number of Active Foreclosures would increase from 17%  to 30% of all Active listings.

What affect does this number of foreclosures have on a middle class community?

Well it will definitely bring down prices of homes.  According to the MLS the average sale price of a home has declined 15% in this community in  2009.

What will the outlook be for 2010? We will just have to wait and see…

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