Across Chicago’s near north side, the Average Sale Price has remained stable while market times have dropped to well below 2013 ranging on average from 2 weeks to 3 or 4 months. This suggests what the facts show which is that much of the distressed inventory has been absorbed. Distressed sales have dropped by 50%.
The National Association of Realtors published a study on ‘Foot Traffic’ which is an indicator for the number of buyers in the market which rose to 57.0 in August. Google released a report at the end of August a report that shows that the number of people looking online at homes is higher at this time of year than it has been in six years and that number demonstrates a growing number. There will be seasonal fall off as the holidays approach, but these are good indications of stability returning to the market.
We are all tired of getting around in the cold icy conditions here in Chicago, but home buyers are still out there looking! When you need a home, you get out and get looking ~ especially the serious home buyers.
If you are considering selling, don’t wait until warmer temps. Seasonally each year the inventory goes up in April and May. Inventory is still very low which means there isn’t much competition.
Chicago inventory levels across the Near North and Near West are well below national levels at 1-2 months of supply. In the beginning of the year the National Association of Realtors reported 4+ months for national levels. Balanced real estate markets carry 5-6 months of inventory. Above that is considered a Buyers Market, and below is a Sellers Market. On national and local levels we’ll tip toward a more balanced market as we head toward spring.
Use the scarcity to your advantage, but be mindful that today’s buyers are savvy and educated. Price within the market and you will have your pick of buyers.
Home prices on Chicago’s Near North Side are back to the Peak levels of 2005-2006, at a sustainable pace. The purchase mortgage rates rose in 2013, and are expected to rise in 2014 as well. Homes values are expected to continue to rise this year too. This chart offers a look at Purchasing Power. If you want to see what your money will buy, please give me a call! Seize the day – seize the opportunities!
The real estate market is gaining stability more and more. Instead of the traditional cycle of moving: sell your home, buy a new home and close both on the same day, we have a new model. Many would be sellers moved into rental properties when their needs changed, and rented out their homes. Money is still very affordable, and good inventory is not lasting long on the market. A lot of buyers are now making their way back into the real estate market, and the inventory isn’t keeping up with demand.
Due to the pace of the buying market, many sellers are making plans to sell well in advance of going on the market. They want to be prepared to put their home on the market, but they do not want to have to move out of their home before they have a new place to live. This creates a market of pocket listings; listings that are not yet actively on the market.
This year 60% of the buyers I worked with bought homes before they came to market. By consistently networking with other agents, I have been able to ‘first look’ for many of the buyers I helped find a new home.
Does this mean a pocket listing sells for less than market value? No. There has been a lot movement in the market which provides good data points for comparable sales. A savvy seller will not consider taking less than the open market would bear. In several instances, my clients have had to compete with other offers on homes that were not yet listed.
Call me to work with a well connected Realtor with strong relationships in the brokerage community!
Median sales across Chicago’s north side are trending toward a steady pace of appreciation, measured growth. Inventory is still well below normal level with less than 4 months supply in most areas, well priced and well cared for properties are not on the open market long. There are still some distressed properties on the market, but they are selling much closer to market value.
From the S&P Dow Housing Views
RealtyTrac®, released its first-ever U.S. Foreclosure Inventory Analysis on March 28th 2013. The report shows nearly 1.5 million U.S. properties were actively in the foreclosure process or bank-owned (REO) in the first quarter of 2013, up 9 percent from the first quarter of 2012 but still down 32 percent from the peak of 2.2 million in December 2010.
Where should you put your money now that the election is over?
Randall Forsyth reported for Barron’s that Byron Wien admits the S&P did better than expected in 2012, but does not anticipate a strong a year in 2013.
Zillow reported in the Home Price Expectation Survey that prices will tick up a bit which echoes what the Urban Land Institute Study found. To varying degrees, Bulls and Bears agree that the real estate market will continue to improve. As an investment, real estate has a proven track record, especially when compared with Wall Street. The real estate market has demonstrated in a big way a better return on investment, and it has traditionally been a long-term investment. It was after the real estate market became a vehicle for short-term investment and very risky behaviors found their way into an otherwise conservative residential real estate market and those overlapping markets that a troubling tidal wave emerged.
We’ll have less uncertainty in the financial markets once we know who will be in office, but the real estate market has a proven track record.
If the mortgage you are getting is $200,000, double that number in the left-hand column. If you’re buying a $350,000
house, take that last number and multiply it by 3 1/2. The most compelling piece to look at is the top number $609.23 and the bottom number $443.48. A BIG savings.
Look at your financial position and the big picture. It’s a great time to buy!