The Claim :
The Market Is Hot And You Should Buy Or Sell Now
Oversimplified statements, analysis and claims about the real estate market are very common.
Some are accurate, but many are agenda driven and others are so general that they don’t apply to any specific neighborhood or property type
Even the National Association of Realtors was forced to revise their market forecasts on numerous occasions during the recession in their effort to paint a picture of a rebounding market that was actually still dropping.
The Reality :
There are parts of the current Chicago market that are hot and present Exciting opportunities
There are other parts that are not performing as well and may present more of a challenge.
Homes priced under $500,000, new construction and town-homes are among the opportunities that are flourishing in the current market.
Re-sale of luxury homes, co-ops and homes that are located in non 1+ school districts are among those having a more difficult time.
The Solution :
Analyze your NEIGHBORHOOD market in as much detail as possible
Research trends in your specific neighborhood, property type and price point. The performance of specific property types can vary greatly among neighborhoods and price points.
Make sure that you are looking at more than just home sales. Inventory levels, median prices and market times are among the many indicators that should be considered when analyzing the market.
Compare monthly results against last year and not just the previous month. Year over year monthly numbers offer a much better picture of the market than month to month.
Months of Supply of Inventory is a great indicator of market health and buyer / seller opportunities. In this calculation of sales and inventory, 6.0 MSI is usually recognized as the dividing line between a buyer's’ market and a seller's market. Over 6.0 is more favorable to buyers and under 6.0 is more favorable to sellers.
Please contact me If you have questions or any real estate needs.