Home values — and sales — continue to rise, and most welcome is the news that first-half home sales activity in the seven-county Chicago area real estate market rebounded to pre-recession levels this year.
Total sales reached 52,239 units, the most since 2006 and 9 percent higher than during the first half of 2014, according to a recent RE/MAX analysis. It’s a much more robust housing market than in 2014 and even 2013, and that’s due to a combination of factors — mortgage interest rates remain low, the economy is adding jobs and there’s a larger inventory of homes for sale.
Also contributing to the market has been the steady increase in home values over the last few years. That has reduced the number of underwater homes and it has allowed owners eager to relocate to do so.
Steve Scheuring, an agent with Baird & Warner of Oak Park, said he is “swamped.”
“Oak Park real estate has been very active this spring market [February through June/July] and is currently not showing any signs of slowing down,” said Scheuring. “In a normal year, we’ll see August approach and the activity almost come to a halt.”
That hasn’t happened yet this year, Scheuring says, and he hopes it won’t.
Oak Park still isn’t enjoying the same market as the Chicago proper, Scheuring said.
“We have our share of multiple offers, but things aren’t ‘crazy’ selling,” he said.
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River Forest is a little different, mainly in the $700,000 to $1 million area, Scheuring said. Last week, there were 23 active single-family homes on the market in River Forest in that range, he said. Their average time on the market is 163 days.
“But what do you compare this to?What do you compare the River Forest market to?” asked Scheuring. “That’s a good question.I think just talking to the residents with homes on the market for extended days, like above 120 days on the market, you get the sense they realize the market is not what they expected or wished for this year.”
The River Forest market is currently “normal,” said Scheuring. In the 700,000 to $1 million price category, a good compromise can be had by both seller and buyer for each to move on to the next stage of their lives, he said.
“Remember the days of putting your house on the market and waiting until the right buyer came along and you negotiated to an agreeable price?” asked Scheuring.
“I’m not sure that today’s society and mindset can allow those days to be back,” he said. “Information moves in mere nanoseconds, and a quicker result and decision is the desire for most people who at this time don’t have the luxury to either wait for a buyer so they can move to the next house they want or for the buyer to find that right home to get into by the start of the school year.”
In Elmwood Park, prices were higher, as was sales volume. As of June 30, there were 69 single-family homes on the market, compared to 64 at this time last year. There were 70 closed deals, compared to 44 in the same period in 2014.
Single-family homes spent an average of 110 days on the market in 2015, down from 131 days in 2014. The average sale price in 2015 is $225,000 compared to $208,000 last year.
Felicia Dechter is a freelance columnist for Pioneer Press. Got a real estate related story idea? Email her at [email protected].