Early this Spring of 2013, the overall housing market appears to be showing signs of a much needed boost and steady recovery – Amen.
“As we enter the busiest time of the year for home buyers and sellers, our latest housing trend data shows just how competitive the market is with a significant national housing recovery well underway,” said Steve Berkowitz, chief executive officer of Move, Inc. “Looking ahead, we can expect the amount of inventory to increase this spring along with higher list prices as sellers become more comfortable with the market conditions.”
According to Celia Chen, a housing economist at Moody’s Economy.com, it’s predicted that positive trends for the housing market will continue and become even more entrenched as the economy picks up steam in the second half of the year. Market observers agree that home prices will keep rising in 2013.
Zillow (national real estate research firm), predicts that after seven long years of falling prices in the Chicago area with median house values down 38% at the end of last year – “We think Chicago has hit bottom,” says the company’s chief economist, Stan Humphries.
It can only continue to edge up at this point.
A Building Sense of Urgency for Home Buyers
Investors, first time buyers and move up buyers are returning to housing market and home prices are steadily increasing and buyers are responding. “Combined with consumers’ growing mortgage rate and rental price increase expectations, the positive home price outlook could incentivize those waiting on the sidelines of the housing market to buy a home sooner rather than later and thus support continued housing acceleration,” said Doug Duncan, senior vice president and chief economist of Fannie Mae.
As rising prices begin to have a positive effect on home equity, those who have been hesitating moving up can suddenly get back in the game and will play a huge role as they re-enter the market again.
“As the recovery blooms, “sellers will smile more, and buyers will need a more concentrated focus,” says Lawrence Yun, chief economist for the National Association of Realtors (NAR).
The Chicago area was named by Zillow as the best market for home buyers among 142 metro areas, basing this on three factors including: median number of days a home sits on the market, percentage of homes that had their list price cut while still for sale and number of homes that sold for less than their asking price (most all). “Go shopping now,” advises Humphries, if you have been waiting to purchase a first condo, a larger house, or a second home.
What Does This All Means for “Chicago Home Buyers?”
When it comes to buying a home in Chicago, the following scenario has become all too familiar this Spring. You get listings from your Chicago Realtor® (or browse on your own) – you mark as “interested.” You like one or more of the homes and give your agent a call to schedule a showing and go see the property. Next, you put an offer on the Chicago real estate property your interested and your agent sends the offer. Oops – another offer was accepted.
Eager to find a home, you continue your search. Once again, you find one you like and schedule an appointment to see the property, ask your agent to put an offer and by the time you submit it, another offer was just accepted.
Chicago Metro Area buyers must be ready. We strongly recommend to our clients to get your pre-approval, down payment and earnest money ready and be “aggressive” if you want to buy your new home. There is not a lot time for “thinking about it” or “hesitation” these days. Schedule a home viewing and if you like it and put the “highest and best” possible offer.
When it Comes to Selling Your Chicago home?
You list your home for sale (or short sale) and assuming your home is priced right, the next day or so you get several requests for viewings. In no time at all you get a first offer or multiple offers. It looks like huge difference from a year ago, for buyers and sellers.
The Chicago real estate Market is determined by supply and demand or available inventory vs. demand, and across most market areas in Chicagoland, inventories are down significantly from a year ago. Low interest rates and buyer demand is helping push prices up and sell homes faster, which happens to be great news for Chicago home sellers!
Chicago Illinois Real Estate Market Overview – Week Ending May 22, 2013
Average price per square foot for Chicago real estate was $195, an increase of 59.8% compared to the same period last year. The median sales price for homes for Feb 13 to Apr 13 was $200,000 based on 6,423 home sales. Compared to the same period one year ago, the median home sales price increased 17.6%, or $30,000, and the number of home sales increased 39.7%.
The average listing price for homes for sale in Chicago was $398,069 for the week ending May 22, representing an increase of 1.6%, or $6,214, compared to the prior week (source: Trulia)
Chicago Market Trends Quick Snapshot:
- Average Listing Price: $398,069 (+1.6%)
- Median Sales Price: $200,000 (+17.6%)
- Average Price/sqft $195 (+59.8%)
- Number of Sales 6,423 (+39.7%)
Most popular Chicago neighborhoods Average Listing Price – Week Ending May 22:
- Near North Side: $1,133,769 (+1.4%)
- Lincoln Park: $1,330, 671 (-3.5%)
- Wicker Park: $577, 302 ( -4.4%)
- DePaul: $944, 611 ( -0.3%)
- Loop: $754, 968 (-0.9%)
Chicagoland Real Estate Experts Serving Buyers and Sellers
If you are thinking about selling your Chicago area home, we have years of experience and extensive training in cutting-edge, online marketing technologies for today’s competitive market. The first step in the selling process is to provide you with an in-depth comparative market analysis (CMA) on your home.
We will then create a comprehensive online game plan to get your Chicagoland real estate in front of as many people as possible and get it sold as quickly as possible!
Behind on your mortgage and don’t know what to do? We are “Certified Distressed Property Experts” and have found that homeowners today have more questions than answers about their circumstances and what to do. That is where we step in, and will guide you through the Chicago area short sale process, whether you are a buyer or a seller.
We also have many years of expertise in the home buying process, focusing on the Chicago area and surrounding suburbs. Give us a call today for a list of Chicago area homes for sale currently available in your area of interest. Whether you are looking to buy, sell or invest, we offer comprehensive Chicago area real estate services in the following counties:
- Cook County IL Real Estate
- DuPage County IL Real Estate
- Kane County IL Real Estate
- Lake County IL Real Estate
- McHenry County IL Real Estate
- Will County IL Real Estate
Give us a call today at 773.671.4663, fill out the online contact form or send us an email, and let us know how we can assist you with your Chicagoland real estate needs!
Adam Balawender, Realtor, CDPE
Real Estate Pro Chicago Remax, City
Cell Phone: 773.671.4663