Real Estate Market Update - Northwest Suburbs - February 2012
Interest rates are low and housing affordability has been the best in decades and yet I was hoping the market would be ending a little better. FHA buyers will be taking a hit to their pocketbooks in April with higher monthly mortgage insurance costs looming on the horizon. It seems that with each slight lowering of interest rates the banks are elevating the closing costs for buyers to offset that bonus. Makes you 
wonder who's side they are on? Obviously, their own and not the consumer.
The graphs show that February sales have been up for most towns in our area.
Another good statistic is when the market is steady (or going up) with the number of homes that go under contract each month. Currently we are between 10 to 17%. This is terrific!
The inventory level (absorption rate) has also decreased even through the slower winter months. The current inventory level has been low between 4 to 7 months. This would have been considered a sellers market 'in the good ole' days' of years past.
I have been including the highest sales prices in each category for the 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 have finally been able to take advantage of today's prices and the low interest rates. This will be the next trend in the recovery. So far, not much activity in that upper end.
| Single Family Homes | February 2012 Total +/- over January | 2012 YTD Total |
% YOY Change | Avg. Sales Price 2012 | Avg. Days on Market |
Highest Sales Price |
| Bartlett | 12 Down |
28 | +27% | $238,676 | 229 | $320,000 |
| Elk Grove Village | 7 Down |
16 | +6% | $203,237 | 117 | $222,000 |
| Hanover Park | 16 UP |
27 | +58% | $124,747 | 173 | $203,000 |
| Hoffman Estates | 20 UP |
36 | +56% | $249,194 | 171 | $465,000 |
| Schaumburg | 20 UP |
36 | +50% | $237,208 | 182 | $450,000 |
| Streamwood | 20 UP |
38 | -7% | $138,637 | 125 | $364,900 |
| Multi-Family Homes |
February 2012 YTD Total +/- over January |
2012 YTD Total | % YOY Change | Avg. Sales Price 2012 |
Avg. Days on Market |
Highest Sales Price |
| Bartlett | 7 UP |
13 | +18% | $105,276 | 134 | $250,000 |
| Elk Grove Village | 7 UP |
15 | +36% | $72,660 | 290 | $185,000 |
| Hanover Park | 12 UP |
24 | +60% | $67,359 | 115 | $150,000 |
| Hoffman Estates | 8 Down |
24 | +20% | $75,567 | 152 | $215,000 |
| Schaumburg | 39 UP |
76 | +85% | $99,863 | 158 | $280,000 |
| Streamwood | 16 UP |
28 | +64% | $116,908 | 146 | $214,990 |
Average Days on the Market needs no explanation and you can clearly see the extended times are agonizing for sellers. None of our market areas are lower than 3 months. Hopefully we will move out of this now that the winter weather has broken.
I am still optimistic that we are recovering here in our area for 11 months in a row. Month over month 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!
The number of 'pendings' (mentioned above at 10 to 17% of currently listed homes) has also increased but you can't count on all of these making it to a successful close!
Looking for an agent that's really a market expert? Let's get your Northwest Suburban home on the market and priced right to sell!
Is your current agent showing you any of this information?
Do you feel your current agent is 'flying by the seat' of his pants when answering these questions?
Looking for a home in the area? Please give me a call or email me on the right to talk about the possibilities.
Sources: MRED February Stats 2012
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