Real Estate Market

North Shore Suburban Chicago Monthly Update

The Numbers are the Numbers but … but what is really happening in the market is clearly showing a change from the late fourth quarter of 2011. Buyers are out and looking – a combination of investors who think we are near or at the bottom, first timers with financial ability who recognize the benefits of low prices and rates, savvy move-up families who may lose in the sale of their current home while making that up in a higher priced buy, downsizers who have nothing really to lose and can rebuy at reduced costs today and a range of others. So the number of buyer prospects swarming the somewhat lower inventory is producing sales. Some of them are occurring quickly after listing and even some more in multiple bids. The question is why? That is simply answered by looking at what is NOT up. What is not up? Neither PRICES nor the INTEREST RATES!

The competitive distress sales in the market, comprising a market within the market and accounting for nearly 30% or one of every three homes sold, has forced the remaining sellers to compete. And they are! At least the successful sellers are. So many more homes are entering the market at competitive pricing with advance effort invested in preparing the property for sale. Thus, many of the listings today are now much more appropriately priced and they are showing better. When this fact is coupled with the low cost of borrowing for mortgages, the result is what we are seeing now. Buyers are buying.

So if you have been thinking of doing one, the other or both, this may be the time to take advantage of this perfect storm. If you’d like a customized review for your situation based upon these conditions, please feel free to contact me to review your property and circumstances and/or generate reports tailored to your community, your area, price range or the type of home you currently own. I can be reached by phone or email at allyson@allyson.com. Alternately, if you would simply like to review listings for Chicago’s North Shore, North or Northwest Suburbs or anywhere in the Chicago metro area, please visit http://www.realestatenorthernillinois.com/Community-Map.

By the numbers -- here’s your statistical North Shore summary snapshot for the end of January 2012 as compared to 2011:

• Market time for detached homes was only 180 days as compared to 227 in 2011; conversely attached homes increased to 224 days as compared to only 193 in 2011
• Weeks required to sell current inventory significantly jumped up from 46 weeks at the end of December to a longer 68 weeks at the end of January, a possible result of the after-the-holidays listing spree
• Correspondingly, the ratios of homes sold compared to homes available increased in the same proportion as the number of weeks required to sell the inventory to 16:1 (sixteen homes available to each one that sells) from December’s lower 11:1
• The percentage of the numbers homes sold in distress relative to all sales maintained just slightly above December’s 29% at 29.7% being either a short sale or foreclosure (of those sales 41% were short sales and 59% were foreclosures)
• As compared to January 2011, new listings and listings back on the market held steady at just under 7.5% fewer meaning that less new listings have entered the market inventory this year
• The number of Closed Sales, in numbers, edged out January 2011 by roughly 3%
• Pending sales remain under the numbers from 2011 at roughly 4.5% less – the sixth consecutive month showing this trend
• 13.5% less properties went off market without selling as compared to last year which translates to more success for those listings (which are also smaller in number than a year ago)
• Price adjustments, a common event needed to sell properties in a competitive buyer’s market, was reduced by 11.1% as compared to 2011 – again this shows a trend to a somewhat greater likelihood of successful sales.

Nearly one-third of our listings and sales are distressed. Might you be someone facing this possibility or curious about how it works and interested in buying? I am a Certified Distressed Property Expert, better known today as a CDPE. Coupled with a Short Sale Foreclosure Resource certification (SFR), I am specifically quipped to help both buyers and sellers leverage the best results and manage the complexities of either buying or selling in a distressed environment. We find these types of homes and properties in all sizes, all styles and all types of condition, locations and price ranges. We don’t always find these sales easy, but they can go much more smoothly with a strong, skilled team of professionals including agents, attorneys and negotiators who are knowledgeable and understand how to prepare and what to expect. Please feel free to call or email allyson@allyson.com for additional information.

Welcome to 2012 – may this be a good year for all!

*This representation is based in whole or in part on data supplied by various Participants in the MREDLLC for the period 1/1/11 through 12/31/11. MREDLLC does not guarantee nor is it in any way responsible for its accuracy. Data maintained by the MREDLLC may not reflect all real estate activity in the market.

If you are considering buying or selling or, alternately, if you are just interested in the property value of your home or a home that interests you, please feel free to send an email request to me at allyson@allyson.com and I will gladly arrange to meet with you and/or set up a personalized webpage with data designed specifically for your home, a home that interests you or for a personalized new home search profile that matches your unique criteria.