We all know that most of the country has been hard hit with slumping home sales and most of the Midwest is no different.

Urban markets tend to fare better then most in this slower market. In Chicago, the Midwest’s highest-priced real estate market, median prices dropped nearly 6 percent to $245,000 in August and sales were down nearly 30 percent.

But real estate agent Doug Fox said the market for city properties - particularly those with a view of Lake Michigan – remain relatively healthy. “Overall it seems to be pretty stable,” said Fox, who focuses on high-rise condominiums and other downtown properties. Buyers are still looking for entry-level properties in the $200,000 to $450,000 range, he said, and luxury condominiums selling for $1 million and up. Wealthier buyers, he noted, are far less affected by the slumping U.S. economy.

Location and, in the case of the downtown market, views play an important role in maintaining prices. The less of a commodity and the more special the view, the stronger the prices seem to remain. Buyers may have a tendency to overlook say, the condition of the property, if the view is spectacular and not likely to change. As a buyer of mine said…”the view cost a million bucks, the condo only cost $250,000.” 

Otherwise, our market is very price sensitive. There are a lot of buyers that are looking, albeit more casually then usual. I think many are trying to get the lay of the land and see what their buying power is. Others are sitting on the fence; waiting to see not only what the economy and the new economic recovery plan has in store for us, but wondering if home prices will go lower yet.

We’re all hopeful that the economy along with the housing market will begin to see a turnaround…let me know what your thoughts are!