Small Doses of Optimism

We have been reading and hearing about small doses of optimism in the Chicago housing market in the recent weeks. There is no better way to find out what is going on in the marketplace than talking directly to those on the front line, that is the sales agents at new home communities. I decided to spend a day wandering around Elgin, talking to whomever was willing to have a conversation. I found that there is generally a sense of optimism in the new home communities. Maybe the sales agents that I spoke with are searching for any small sign of hope, but maybe there really is some activity taking place.

One sales associates told me that they had 8 sales in March, a mix of townhomes and single family homes. She also indicated that she had appointments with 4 others during the next three days who were going to sign contracts. I asked her how this compared to last year and she said it was about the same but it "felt much better." Almost every person I talked to said that traffic and sales had picked up in the last 30 days. Is this increase in activity a result of lower interest rates or the first time buyer tax rebate or builder incentives or just seasonal activity? Each agent said it was a combination of everything. At the end of the day, does it really matter? What does matter is that there seems to be a little bit of thaw taking place in the housing market, at least in Elgin. Is this sustainable? Only time will tell, but what is apparent is that the mood of new home sales associates in Elgin is cautiously optimistic.