Real Estate Market Update - Northwest Suburbs - May 2016
This is the place to get those Northwest Suburban real estate questions answered!
Each market segment is faring differently but one notice is that days on the market is down from the previous month of April. You can see in the attached national recovery graph that different parts of the country are faring differently.
What are Prices Doing? Average sales prices continue to be relatively stagnant for the Midwest Area. Illinois price increases came in modestly at 4.67% which is in the middle range of the national survey.
Average Days on the Market came in lower from last month because of the normal accelerated buying season. One thing that most people forget is that if a house closed in May, the buying process actually started 45 to 60 days earlier. So that means that buyers were out toward the end of March & early April in order to close in May.
With our low amount of inventory for May we should be moving into a sellers market where we don't have enough homes for sale. As an example, the collective inventory level is 20% below what was available a year ago. Prices should be increasing based on that lack of inventory but that hasn't been the case. The less inventory we have means prices should begin to increase but that hasn't happened. Market times also bear out this phenomena. You don't have an average market time of 60 days in a hot market.
Flipping is the market term used when an investor purchases a property, renovates & repairs it, and then re-sells it within a short period of time for a profit. Our Northwest Suburban Area is one of the top 20 markets in the U.S. Rehabs and flips make up 5.57% of our total market share. The median gross profit from a flip is $76,000 so it indeed is profitable if you know what you are doing. Our average days to flip is 158 days.
Looking for an agent that's a true market expert? I can zero in to your specific neighborhood and give you the current market details so you can make an informed decision and help your home sell faster and for more money. My experience does play an important role. I'm one of those unique people that will tell you how the market really is explaining both the good with the bad.
Looking for a home in the area? Please give me a call or email me to talk about the possibilities. You will need current market strategies to get you into that new home.
April 2016 Report
Sources: MRED May Stats 2016, Corelogic MarketPulse May 2016