Elgin IL Homes - Elgin IL Real Estate - Housing Market for March 2012

Elgin IL Homes - Elgin IL Real Estate - Housing Market for March 2012

How to describe this market for Elgin IL Homes?   We have actually been seeing an improvement for the last 10 months.  It still feels sluggish with extended market times, erratic movement, and unpredictable both for buyers and sellers.  Interest rates have never been lower with affordability being the best it's ever been.  But buyers are still pensive and definitely not pulling the trigger very fast which then frustrates sellers!

The months supply of inventory for Elgin IL Homes has been steadily decreasing and is an asset for recovery. We have 29% less in housing inventory then we did 12 months ago.  Too many homes on the market makes it more competitive and prices are forced downward.  Currently Elgin has experienced an inventory drop from 8 months to only 5 months.  Is balance coming soon for our market?

Another great indicator that the Elgin IL market is improving is the number of homes that go under contract each month. Currently we are between 7 to 14%. This is terrific!

What's positive about the market in Elgin?  It's been constantly improving from the number of homes that go under contract each month to the average sold prices.  I have to be honest, many surrounding towns have recovered faster with less extreme changes in the inventory, sales numbers, average prices each month than Elgin has. It's good to see a solid momentum going into the summer months.

Don't forget that during this past year the lower end homes are selling first which brings down the average prices for the whole market.  The more foreclosures entering with the lower prices makes the cycle continue.  Buyers are being 'enticed' by all the REO's and foreclosures because why should they buy the same home for $30,000 more?  Banks are now giving two year home warranties and paying mortgage points too.

Move-up buyers have been wanting to move up to a larger home and also take advantage of the interest rates and great prices.  Just one problem - they can't sell their current home.  Same conditions for people that want to down size.

If you are thinking of buying a Elgin IL Home, please consider me as a 'buyers agent' for your purchase. An experienced veteran, like myself, can steer you through the 'mine field' on your way to your first or tenth home!