Real Estate Market Update - Northwest Suburbs - March 2013

Welcome to the place to get those housing questions answered about the real estate market in the Northwest Suburbs!

Our local inventory level has continued to decrease and ended at extremely low levels. With this inventory level under 3 months this should be considered a sellers market.  And at these levels, buyers are scrambling for the lower price ranges. Sales levels are increasing but based on this inventory level, they should be crazy.

Nope, not for that price! Overall inventory is down but mixed with high market times make this market conflicted. The market is still not energized by the low inventory like it should be. Buyers are still saying 'no thanks' to a good portion of homes currently available. Homes become 'stale' with buyers after 90 days on the market.

I have noticed that there has been substantial price increases in foreclosures new to the market. Can't fathom where they justified these prices because they are the ones that bottomed out prices for the rest of us.  Hope they have problems with those appraisals like regular sellers have!

What about those Prices?  Well, the national media continues to be wrong about price increases here in the Northwest Suburbs.  Everything in real estate is local and that includes talking about prices. Prices are flat but should 'eventually' increase based on the inventory level. 

I've included the highest sales prices in each town and category 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. Don't forget that real estate has a substantial 'lag time' involved between market activity vs. closed sales. Purchases are taking anywhere from 45 to 60 days from contract to close making this report for foot traffic in January and February.
 

Mixed Signals Here?  You bet there is. I've been waiting for months for the lack of inventory to propel the market forward like a rocket but it hasn't happened yet. Sales have increased the most this month on single family.

I am optimistic about our overall market and when interest rates are so low, buyers should take advantage of the best affordability ever. The average 30 year fixed rate mortgage was 3.32% for 2012. This opportunity will not last forever as either price increases or interest rate increases can cut into your purchasing power.
 

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.


Sources:  MRED March Stats 2013