Real Estate Market Update - Northwest Suburbs - December 2013
What a finish to 2013! This is the place to get those housing questions answered about the current real estate market in the Northwest Suburbs!
I'd like to report that 2013 sales have been up in our area in both housing types. The market improved consistently each and every month.
Our local inventory level has continued to decrease and ended at overall low levels. With our inventory level near 2-4 months this should be considered a sellers market. With these levels, buyers should be knocking each other down in the driveway to get into a listing but that hasn't been happening except in the lower price ranges below $150,000. Overall housing inventory is down from 2012 by 30%.
What about Prices? Well, the national media is wrong about price increases pertaining to the Northwest Suburbs. Blanket statements just have no place in real estate. Everything in real estate is local and that includes talking about prices. Prices have increased during peak selling months of May thru August and then tapered off slightly towards the end of the year. Unfortunately prices are currently flat which you can see by the trend indicators in the chart.
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. 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 life in that upper end but far from normalizing the market that is required.
Mixed Signals causing Confusion! Average Days on the Market are still extremely elevated in spite of our low inventory. It's puzzling because inventory is down 30% from the year before but market times are high? What does that say? This market condition is telling currently listed sellers that buyers are rejecting either their condition or their price. If your home is currently on the market for over 90 days, buyers are clearly giving you feedback.
I am optimistic about the upcoming 2014 real estate year and look forward to keeping you informed of the latest happenings and trends for our Northwest Suburban area.
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. My experience also plays an important role.
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 December Stats 2013