Detached home sales in northern Illinois were down in April, while time on market was up. According to REALTORS® in the area, the data does not tell the whole story.
"I listed a home last week, and within a matter of hours we had 20 showing requests, then the seller received eight offers and accepted one that was over asking price," said Debbie Pawlowicz, president for the Mainstreet Organization of REALTORS® Board of Directors." The market is still very active, I am still seeing buyers who are willing to pay top dollar, but compared to last year, they are more deliberate about what they want."
The sale of detached single-family homes was down 27.4% from 3,340 in April 2022 to 2,424 this year, while median sales prices were $350,000, down just slightly from $357,750 last year. Average time on market has been trending upward in 2023. April saw the most notable increase when it jumped 47.2% from 36 days last year to 53 days this year.
"In January of this year, time on market was 59 days and median sale price was only at $306,495. Last month, time on market was 53 days, but median sale price was $350,000. For most sellers, price is more important than time on market," said Mainstreet CEO, John Gormley.
Attached home sales were also down from 1,631 in April of last year to 1,101 this year, a 32.5% decrease. Time on market for these homes decreased by just a day, from 31 days last year to 30 days in April 2023, and median sales prices continued to be slightly up over last year. In April 2023, median sale price was $230,000, while last year it was $220,000.
For the Chicagoland PMSA in April, inventory was at 1.8 months.
"Picturing a year from now, it would be great to see interest rates come down and new housing stock in the pipeline," added Gormley. "It's important that we partner with policymakers to ensure that we keep regulations in check so that new home construction can continue and the dream of home ownership is within reach for more consumers."
One such example of regulators reducing the barrier to home ownership came last week, following the urging of the National Association of REALTORS® (NAR), when the Federal Housing Finance Agency (FHFA) rescinded its proposed loan level pricing adjustment (LLPA) upfront fee on borrowers with debt-to-income ratios greater than 40 percent that was slated to go into effect August 1st.
In Chicagoland, the following were several of the suburbs where average market time increased from April 2022 to April 2023:
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Aurora (168.8% increase in average time on market)
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Batavia (354.6%)
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Buffalo Grove (73.3%)
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Carol Stream (41.2%)
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Des Plaines (104.4%)
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Dolton (81.5%)
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Elmhurst (126.5%)
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Glen Elyn (363.2 %)
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Gurnee (57.1%)
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Hoffman Estates (400.0%)
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LaGrange (418.2%)
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Lansing (69.1%)
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Naperville (90.5%)
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Oak Forest (185.7%)
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Oak Lawn (114.3%)
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Palatine (107.7%)
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Schaumburg (50.0%)
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St. Charles (114.3%)
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Woodridge (66.7%).
For REALTORS®, it is important to note that while the market is settling down from where it was at this time last year, homes are still moving quickly and buyers are likely to find themselves in multiple offer situations. Help them understand they can rely on your expertise to help them identify the right home, get to the negotiating table and put their best offer forward. While the market is still a good one for sellers, they also need your savvy to prepare and list their homes.