2009-2010 Real Estate Transfer Tax Projected Revenues: Chicago Transfer Tax Revenues

The City of Chicago's broadest measure of real estate demand can be determined by the amount of transfer tax collected (tax stamps) between a given period of time. Based on the information provided to the Chicago Association of Realtors® by the City of Chicago, one can easily see the broader market decline in terms of overall transaction demand. Buyers are drawn to high quality properties that will retain desirability over the three (3) to five (5) year term. The estimated projection of transfer tax collected in 2009 is less than half of the 2008 tally. Thus one could reasonably assume since transfer taxes increased by 30% between 2008-09 then the market will decline by well over 60% measured on total dollar volume. These numbers do not bode well for prospective sellers because the diminished pool of buyers will not be bidding the prices nearly as high as in the past. The City of Chicago is projecting a $519,000,000 deficit for FY 2010.

Real Estate Transaction Transfer Tax (source: City of Chicago, Illinois, Cook County)

Historically -

• 2002 $140 million range
• 2003 $150 million range
• 2004 $200 million range
• 2005 $230 million range
• 2006 $250 million range
• 2007 $210 million range
• 2008 $120 million range
• 2009 EST $55 million range
• 2010 EST $53 million range

Chicago Real Estate Market Graph | Lakeview | 3 Bedroom

Why has the three (3) bedroom real estate market in Lakeview Neighborhood of Chicago, IL remained relatively stable over the past four years?

What are your thoughts?

Please leave your comments and ideas.

Chicago Real Estate Market

The news doesn't look too hot for May 2009 coming in from Ric Cox and ChicagoCondo'sOnline.com. My FBI, real estate, and Chicago mortgage fraud warnings from 2007, 2008, and 2009 are proven accurate with this latest news. No amount of government spending, regulation, or oversight will change the fact that the real estate markets have been looted. The only way to change it is to ensure folks exchange ability to pay for the money the borrow. For example, Why did the government authorize and banks lend 30 year mortgages to folks with four year student visas? Troubling at best.

Source: ChicagoCondosOnline.com

• According to figures generated by MRED, the regional MLS, year-to-date sales of Chicago condos are (this year vs. last year):

• * Down 57% in total dollar volume, to $914 million

• * Down 48% in units closed, to 2,805

• * Down 13% in median sales price, to $280,000

• * Up 23% in average market time, to 156 days.

  Comparing May 2009 sales to April 2009:

• * Units closed were up 19%, from 645 in April 2009 to 766 in May 2009
  

• * Dollar volume was up 18%, from $202 million to $239 million, month over month
  

• * Median sales price was down 0.3%, from $280,000 to $279,000

• * Average market time was down 8%, from 161 days to 148 days.

Source: ChicagoCondosOnline.com, Rick Cox