Across the Chicagoland real estate market, distressed sales namely foreclosures & short sales, are now making up less & less of closed transactions. Economists now tell us that they now make up the smallest market percentage, now falling to a 6 year low. Illinois is currently at 1.8% statewide.
What does that mean for you and your Schaumburg Area Home? Prices are now stabilized with a majority of closings now being 'normal' transactions. There is such a small percentage of short sales now that it's hardly worth considering.
SUCH A DEAL?
REO's or foreclosures are still having an impact in the market share but in different ways. Long gone are the 'deals' that were able to be found even 1-2 years ago. Foreclosures are becoming a smaller & smaller market percentage but the way they are being introduced into the market has changed. Many foreclosures are being 'rehabbed' before being put on the market as buyers want to do less & less work. In fact, some first time home buyers might be incapable of knowing how to do that required work. The banks have figured this all out now and are installing new carpeting, flooring and fresh paint where needed. They are trying to wipe the 'blight' or stigma out of the property by presenting it in it's best light.
Not a bad deal for buyers who don't know the working end of a hammer. Prices do not reflect the rock bottom condition that was offered in the past. With that work, comes an increased price & banks are quickly figuring out what the public wants. Incentive programs like new stainless appliances are not uncommon in foreclosures as a buyer enticement. Standard 'refreshment' features are new carpeting & neutral paint.
HIGHER PRICES DON'T CHANGE THE FEAR
Let's face it, buyers are easily scared off from foreclosures no matter what the condition. The main concern being they are sold in 'as is' condition. 'Take it or leave it' becomes a little scarier with a big-ticket home purchase. The buyer must still do their due diligence & have a thorough home inspection but many buyers are still scared of that 'unknown' factor that is not there with a regular seller. I have to admit that it's sometimes hard for a buyer to try to work through the 'what happened here' curiosity.