What makes a Market Expert? I’m sure to each of you reading this it would take a different answer. The dictionary describes an expert as: ‘having, involving, and displaying special skills or knowledge derived from training or experience.’ With that said, let’s begin talking about the Schaumburg IL Market Place of which I have been part of for the last 20+ years.
What is going on really? This post started with trying to update the consumer with numbers that they can both understand and use with regard to area home sales. With all the bad press that the real estate market is getting on the news and with the mortgage market changing almost every day, most people want to know what will happen now?
Since I don’t know the future market outcomes and how it can effect our marketplace, let’s talk about what I do know - right now - and what has happened with market conditions for 2 different time segments: 6 months ago (3/17 thru 8/31) and over a 1 year period (August 2007 thru August 2008).
People always ask me “Lyn, how many homes are selling?” Well that seems to make a difference in what area or subdivision you live in. It’s really not an evasive answer. Each area and subdivision is totally different! It also makes a difference if you have a single family home, a townhouse or a condo. Here’s what I do know about the Schaumburg Market –
Single Family Homes
Schaumburg now averages about 4 homes sold per week over the last 6 months. The Median Sold Price over the last 6 months is up 14% to $316,250 from $276,500.
Single Family numbers work out to 292 homes on the market with 26 going under contract for August 2008. That is a little under 9%. This means that only a little under 9% of homes on the market have sold in Schaumburg!
Over the last 1 year period - Number of homes for sale dropped from August 2007 by 18%. That means there are 18% less homes on the market than a year ago. Homes going under contract is up 8% over the last year offering a slight market improvement. But, the actual closings are down from August 2007 by 25%.
August 2008 had 8.6 months of inventory vs. 11.7 months in 2007. This inventory is call the "absorption rate". That is down 26% which is a good improvement and can also be contributed to the overall lesser amount of homes on the market.
Average Days on the Market is 92 for August 2008 vs. 93 for August 2007. So that is a minuscule improvement hardly worth noting. Let's just say that market time is the same with less homes for sale on the market now.
Multi-Family Homes – these are the townhomes, quads, coach homes, manor homes and condos that everyone is familiar with in our area.
There has been a significant shift over the last few months in this market. The Median Sold Price over the last 6 months is down 11% to $178,750 from $200,000. There is a definite swing towards lower priced homes which I attribute to the recent condo conversions in the area.
There were a total of 641 homes for sale and 44 went under contract for August 2008. This means that only a little under 7% of homes on the market have sold in Schaumburg! This is down from my report in June from 9%.
Number of homes for sale increased by 25% over the last 6 months. Homes that went under contract is also down 50% from 6 months ago.
Over the last 1 year period - Number of homes for sale increased by 3% from August 2007. Homes going under contract are down 29% from August 2007 and homes closing are down 53%. This is an unfortunate downturn due to the increased homes on the market and added condo conversions. So the inventory is increasing and the sales are decreasing month after month.
August 2008 had 11.8 months of inventory vs. 7.9 months in 2007 which reinforces my statement above. Average Days on the Market is 102 for August 2008 vs. 62 for August 2007 which is a significant increase of 60%.My goal every month for all my clients is to be sure they are included in that 7 to 9% every month. How can they do that?
- They should be priced competitively against their competition!
- Shows well with my staging techniques that I provide all my clients!
- Can move quickly if need be – seller flexibility is key!
Can my home really sell? My answer is – you bet! You just have to be a little more flexible and a little more patient in this marketplace and do a lot more work! The buyers are out there!Website: www.LynSims.net Email: LynSims@remax.net
Northwest Suburban Chicago Areas of Schaumburg, Hoffman Estates, Elk Grove Village, Medinah, Itasca, Roselle, Bloomingdale, Carol Stream, Bartlett, Streamwood, Hanover Park, Elgin, South Elgin, St. Charles.
**Figures compiled from MLSNI/MRED, my accurate little pencil and calculator, AgentMetrics Market Details.