Chicago Area Homes Were Had at 5% Discount in November
The overall discount for the 5,765 homes sold in the Chicago area during November was 4.9 percent, according to Redfin. This reflected a decline from the 5.5 percent overall discount observed in August.
Tim Ellis, a writer at Redfin who also blogs about real estate in Seattle, explains the methodology:
First, we compiled a list of every sale that took place in the month, calculating each sale's sale-to-list ratio (based on the final list price). Next, we simply take an average of every individual sale's sale-to-list ratio to calculate an entire area's sale-to-list ratio. Any sales that came in with a sale-to-list ratio above 150% or below 50% are excluded from the calculation, and areas with fewer than twenty sales are excluded from the top and bottom ten rankings.
Highland Park topped the list of the top 10 most-discounted cities in the Chicago area with overall sale prices seeing 9.8 percent off the final list price in November. According to Trulia, a real estate search service based in San Francisco, the median sales price for homes in Highland Park was $450,000 from September through November, down 1.4 percent from the same period in 2008. Redfin pegs this number at $422,000 for September, down 8.9 percent from the same month in the previous year.
Westmont (9.5 percent), Niles (8.7 percent), Lisle (8.4 percent) and Lansing (8.3 percent) also saw big-time discounts in November, according to Redfin.
Cicero was the only city with significant activity to actually see houses going for more than list price, or a premium of 0.4 percent. Franklin Park (0.6 percent), Park Forest (1.5 percent), Oak Forest (3.0 percent) and Chicago Heights (3.0 percent) all saw below-average discounts.
The actual city of Chicago saw homes being sold at a 3.9 percent discount in November.
For comparison's sake, the overall discount for homes sold in the New York area in the same month was 5.3 percent, while the Boston area saw a discount of 3.7 percent. The discount in November for homes sold in the Seattle area was 2.5 percent, and the greater D.C. area saw homes sold at a 1.7 percent discount.
The major areas in California saw noticeably smaller discounts, with L.A. County seeing an overall discount of 0.2 percent. Meanwhile, homes sold in San Diego County actually went for 0.7 percent more than asking price, while homes sold in the Bay Area were sold at a 0.8 percent premium.