After eleven consecutive months of falling sales and rising inventories, we are in a very different market than a year ago (see market analysis below).
As inventories rise, the home selling process becomes more complicated due to the increased competition.
What Do You Need To Do To Sell Your Home In The Current Market ?
Start Preparing Now, There Is A Lot To Do
The record low inventories and high demand of the past few years gave sellers a lot of leeway in the presentation of their homes.
The days of multiple offers and record low market times have passed for the most part and homes now face stiff competition from a multitude of competing properties.
Start consulting with your broker as soon as possible, to discuss de-cluttering, repairs and upgrades that may be needed to make your home the most pristine in it’s price point.
It’s A Beauty Contest And You Don’t Want To Be The First Runner Up
With inventories rising, buyers’ property searches which once showed two or three homes can now be showing significantly more.
Your internet presentation will determine whether potential buyers want to see your home, or click to the next property (and you don’t have much time to impress them).
Enhanced photography with proper angles and lighting, along with floor plans and descriptive copy are essentials in today’s market.
Would You Pay Your Asking Price For Your Home
Once you get prospective buyers to see your home, pricing will determine whether you get an offer and how close it is to the list price.
This has become a very competitive market and testing unrealistic price points will, in many cases, lead to increased market times and lower initial offers.
In today’s market, a lower more competitive asking price will often result in higher offers.
Hire A Great Broker And Then Listen To Them
With average market times now at 87 days and rising (see below), many people are learning the hard way that selling their home is not quite as easy as they may have thought.
There are over 11,000 brokers serving the Chicago area, all with different levels of experience and expertise. Hire a broker who is an expert, with a proven track record for your property type and neighborhood. Make sure that they tell you what you need to hear and not just what you want to hear. (I am always a great choice!)
Beware of discount brokers and be aware that some of today’s technology is great for promoting brokers, but not selling homes.
Once you have made your choice, listen to your broker’s advice. They really do know how to navigate the process to get you the best price in the shortest amount of time.
October 2018 vs 2017 – Cumulative Home Sales dropped 6.0%
NEAR NORTH - Down 15.5%
LINCOLN PARK - Up 8.8%
LAKEVIEW - Down 9.7%
NORTH CENTER - Up 20.0%
Sales of luxury homes (priced over $1,000,000) increased 19.6% .
Sales of homes homes priced from $500,000 to $1,000,000 decreased 4.9%.
Sales of homes priced under $500,000 decreased 11.5%.
HOMES UNDER CONTRACT
October 2018 vs 2017 – Cumulative Homes Under Contract decreased 9.6%
NEAR NORTH - Down 10.9%
LINCOLN PARK -Down 14.41%
LAKEVIEW - Down 14.8%
NORTH CENTER - Up 27.5%
Noteworthy – Most home sales that closed in October went under contract in a previous month. Units Under Contract can reflect a more accurate picture of the current month, although not every home that goes under contract closes.
HOMES FOR SALE
October 2018 vs 2017 – Cumulative Inventories of homes rose 9.8%
NEAR NORTH - Up 7.9%
LINCOLN PARK - Up 21.5%
LAKEVIEW - Up 6.9%
NORTH CENTER - Up 2.4%
Luxury home inventories (priced over $1,000,000) increased 10.0%.
Inventories of homes priced between $500,000 to $1,000,000 rose 5.9%.
Homes priced under $500,000 saw inventory levels increase by 20.0%.
MONTHS OF SUPPLY OF INVENTORY
October 2018 vs 2017 – Cumulative Months of Supply of Inventories rose 16.7% to 4.9 MSI
NEAR NORTH - Up 13.0% to 6.1 MSI
LINCOLN PARK - Up 26.8% to 5.2 MSI
LAKEVIEW - Up 14.3% to 4.0 MSI
NORTH CENTER - Up 7.7% to 4.2 MSI
Traditionally, MSI over 6.0 designates a buyer’s market and under 6.0 a seller’s market.
MSI of luxury homes priced over $1,000,000 dropped for the 12th consecutive month to 8.4 MSI (8.6 MSI last year).
MSI of homes priced between $500,000 and $1,000,000 increased 6.2% to 5.1 MSI.
MSI of homes priced under $500,000 rose 33.3% to 3.6 MSI.
October 2018 vs 2017 – Cumulative Median Prices increased by 3.5%
NEAR NORTH - Down 3.4%
LINCOLN PARK - Up 7.5%
LAKEVIEW - Up 8.7%
NORTH CENTER - Up 1.0%
Median prices of luxury homes priced over $1,000,000 decreased 6.3%.
Median prices of homes priced from $500,000 to $1,000,000 decreased 1.4%.
Homes priced under $500,000 decreased 0.6%.
DAYS ON THE MARKET
October 2018 vs 2017 – Cumulative Average Days On The Market increased 10.0% to 87 Days
NEAR NORTH - Up 17.9% to 112 days
LINCOLN PARK - Up 11.3% to 79 days
LAKEVIEW - Up 46.4% to 101 days
NORTH CENTER - Down 33.3% to 54 days
Market time for luxury homes priced over $1,000,000 decreased 4.2% to 67 days.
Homes priced between $500,000 and $1,000,000 posted market time increased 53.8% to 200 days.
Market times for homes priced under $500,000 did not change at 82 days.