Northwest Suburbs Real Estate Market Report - August 2012

Real Estate Market Update - Northwest Suburbs - August 2012

So let's start with those housing questions you might have and the reason you're here! What is going on with the real estate market in the Northwest Suburbs? 

I'd like to report that August sales have still been up in our area in both housing types. The market is consistently improving with the number of homes that go under contract each month. Year over year figures (wow, highest at 60%) are astounding because, let's face it, nothing happened much in 2011. 

Our local inventory level (absorption rate) has continued to decrease with the level being as low as it can almost go. We are currently 64% lower than 2011 for housing levels. This would be considered a sellers market 'in the good ole' days. Inventory level has now decreased consistently and is holding steady at a low 3 months.

Are there more buyers than housing inventory?  Is this really true? Buyers are still being extremely selective which equates to those high days on the market. Buyers are proceeding slowly but hopefully if the inventory level stays low enough the tables will begin to turn. Buyers are still able to say 'no thanks, not at that price'.

Multiple Offers?  Yes, if your a buyer out there looking in the lower price ranges things are going to be pretty tough on you. You will be reviewing phrases you've heard that say 'Isn't this supposed to be a buyers market?'   Yep, things are beginning to change with prices going significantly over list on foreclosures.

I have been including the highest sales prices in each category for every month so we can watch for the 2nd tier home sales increase. The market will always recover from the 'bottom up' with the lower sales prices showing the largest number of sales until the 2nd tier breaks free. This will be an indication that the 'move up' buyers will finally been able to take advantage of today's prices and the low interest rates. This will be the next trend in our recovery. Every month there are indications that there is some sporadic life in that upper end but far from normalizing the market that is required!

Average Days on the Market needs no explanation and we are still elevated but are slowly decreasing with each consecutive month.  I estimate that days on market has lowered by 5% with this report.

I am optimistic that we are recovering and monthly we have seen an increase in closings. One of the reasons I show the 'month over month' totals is to show you we truly are having sales increases - it's not just sales hype!

Looking for an agent that's a true market expert?  Let's get your Northwest Suburban home on the market and priced right to sell!  I can zero in to your specific area and give you the current market details so you can make an informed decision and help your home sell faster.

If your home is currently on the market, is your agent showing you any of this information?  I'm one of those unique people that will tell you how the market really is explaining the good with the bad.

Looking for a home in the area? Please give me a call or email me (on the upper right) to talk about the possibilities. Depending on your price range, you will need current market strategies to get you into that new home.

I think I hear what I want to hear about housing prices!


Sources:  MRED August Stats 2012