The Burbs Report:
My 2 Cents Overview:
The holidays are over, our pants all fit a little tighter, and we can move onto our new year new me life. Now that they are over we are officially in the Spring Season! If you want to list you better start getting your ducks in a row! But lets look at how the we closed 2022 out with my 2 Cents!
We are still ever so slowly moving back to that balanced market I keep talking about. After the deep freeze we experienced during Christmas, it seems to be lingering around the housing market. Not a lot is moving, or coming to market. That has a lot to do with the seasonality of Real Estate. We get it, no one wants to be moving in cold temps or during the holidays. BUT we are seeing the second lowest amount of new listings in the last decade.
Now with the holidays around the corner, we are looking at frozen market. Every “player” in the game right now is waiting for another “player” to give in. Buyers are waiting until rates come down to be able to afford more, sellers are waiting on their houses to sell so they can buy a new house, and interest rates are going to stay high to curb the inflation amount. We are in a grid lock, which is nothing new to us Chicagoans. The next 6 months will be very telling for the market. Interest rates are starting to creep down ever so slowly, so will more people want to sell and rebuy? Will buyers start to change their standards to buy what is on market now and deal with it? Will the rates continue to fall, bringing more buyers and sellers to the market? Stay tuned!
So long story short: If you are going to list your property now in this shifting market, make sure you list it the right way and not the way everything was listed in the housing craze. Work with an agent (hint hint me) that understands this and wants to see you win IN TODAYS MARKET. Set yourself up for success in listing your house by doing it with someone who is going to be realistic and honest with you to get your property sold.
Single Family Homes Median Sales Price (MSP)
Median Sales Prices are still relatively high, but we are starting to see the market slow down in most areas. MSP is starting to flatten out, largely due to interest rates hiking up. Not as many people are in the buyers pool, which is driving the MSP down. There isnt the chaos of COVID causing prices to jump an insane amount.
This is still largely due to the lack of inventory on the market, higher interest rates, paired with the high demand to buy a Single Family home.
People are willing to spend the extra money up front to get a home today. With the ability to work from home, people are saving at the pump and putting that money into their homes. This desire to pay extra are driving prices up every month. Year over Year data:
Entire MLS Area: +3.3%. Oak Lawn: +5.4%. Burbank: +2.9%. Evergreen Park: -1.2%.
Alsip: +4.7%. Bridgeview: +1.7%. Hickory Hills: +7.4%. Palos Hills: +4.6%.
Single Family Homes Average Market Time (AMT) in Days:
Market Times are starting to creep back up. Everything is due to the interest rates going up. Less buyers in the market equals less competition. Less competition means the properties are sitting longer waiting to be purchased. Pair this with the Holiday season around the corner, and boom the AMT goes starts creeping up. The market is slowly normalizing and getting back to Pre Pandemic characteristics.
This is in part due to the rise of mortgage rates, which is removing buyers from the market. Which means sellers are having to wait longer to get their house sold. We are seeing the annual winter slow down in Real Estate sales. Houses are sitting longer because people aren’t spending the money on houses during end of summer vacations or back to school season. It will pick up again over the next few months leading up to the holidays.
Market times are however still some of the lowest they have been in over a decade, Year over Year data:
Entire MLS Area: -13.3%. Oak Lawn: +17.6%. Burbank: +25.6%. Evergreen Park: +2.9%.
Alsip: 31.0%. Bridgeview: -21.1%. Hickory Hills: -13.9%. Palos Hills: -28.3%
Single Family Homes Months of Supply:
Months of Supply means if no more houses come to the market at all, how many months would it take to sell out of the current inventory.
Very little change in the volume of properties on the market. The volume of properties is still relatively consistent with a small percentage of change month to month. Home owners are still cautious on selling with prices as high as they are if they need to purchase again.
In the post pandemic world, new home builders have not been able to catch up on the missed production during 2020. This is consistent with the data showing the downward trend in months of inventory. Year over Year data:
Entire MLS Area: 0.0%. Oak Lawn: +30.8%. Burbank: 0.0%. Evergreen Park: +7.1%.
Alsip: +25.0%. Bridgeview: 35.3%. Hickory Hills: -12.5%. Palos Hills: +20.0%.
Single Family Homes Price Per Square Foot
Just like with Median Sales Price, the price per square foot has been on the rise and is sitting relatively high for each Burb.
This is still largely due to the lack of inventory on the market, paired with the high demand to buy a Single Family home. Additionally with the market starting to balance itself out again, the price per square foot will naturally come back down to a reasonable price compared to the insane pricing we saw the last two years.
Lack of inventory is driving these prices higher and higher year over year. Year over Year data:
Entire MLS Area: +6.9%. Oak Lawn: +7.9%. Burbank: +2.7%. Evergreen Park: +5.6%.
Alsip: +3.5%. Bridgeview: +9.9%. Hickory Hills: +2.1%. Palos Hills: +9.3%.