Homeowners in St. Charles, IL who are thinking of selling their home need to consider the amount of inventory that they will compete with. Inventory sounds like boxes in a warehouse, but a successful seller needs to "think like a buyer" who is evaluating all the choices he has on the market. Realtors speak of "inventory uptake", or "absorption rate" which is the number of days or months or years it will take to sell off the current inventory at the current rate of sales.
Let's look at a real price point in St. Charles, IL: homes priced at $450,000 to $600,000. There are 109 active listings and 10 under contract. There have been 50 closed sales in the past six months. The absorption rate is 13 months, the amount of time it will take to sell off the inventory at 8.33 houses per month.
The analysis of the closed sales shows even more relevant data. A good proxy for value in a problematic market is assessed value (what the tax assessor says your home is worth). The assessed value of the closed sales shows that the houses that sell have an assessed value proportionately greater than the listings still on the market.
Houses at this price point in St. Charles, IL sell when they are priced at about 80% of assessed value. Put more simply, when a house sells for $550,000, it is a home valued at $700,000. The absorption rate of houses priced at 80% of assessed value is 30 days. The absorption rate of houses priced at 100% of assessed value is 10 months. Unfortunately, the absorption rate of houses priced at 120+% of assessed value is pretty much "never".
If you are thinking of selling your home in St. Charles, IL, you should know the absorption rate for your price point. All real estate is local, so if you would like help figuring out what your home is worth, and what you should do to sell it in today's market, give me a call and let's talk.
Homes Sales in St. Charles, IL
Dynamic Chart Shows 3 Years of Sales Data