Arlington Heights Housing Market | June 2023
Are you worried that the housing market might get a little bit deflated later this year. I have the newest stats affecting the local real estate market. Welcome to our show How is the Market in Arlington Heights June 2023 edition.
Last month we saw a substantial increase in average sold prices in our area. Sold prices took a significant upswing, creating a lot of excitement throughout the local community. Picture this, since April the average price increased by over $11,000, reaching a remarkable total of $473,000. This figure happens to be the highest recorded number in our area so far this year. This large increase, just over 5%, can be attributed to the multiple offer situations that have become increasingly common in our spring real estate market.
Get ready for another exciting twist in the real estate market. As we continue through the latest statistics, we unveil another big change. Average Asking prices have experienced a significant surge. Over the past month the average asking price increased by 4.72% reaching an impressive $466,500. The sellers in our area have tapped into a newfound confidence. With limited inventory available, they seized the opportunity to list their houses with high asking prices and make the most of this thriving market.
Sold to Asking Price
Curious about the impact generated by those numerous multiple offer situations? Today, we unveil the newest stat: the sold-to-asking price ratio has reached it’s highest point this year at 101.41%. That means, on average, buyers paid $6,500 over the asking price for listed properties. This 1.41% over the asking price is the highest recorded number since March 2022. The competition is fierce as buyers are pulling all stops to secure their dream homes. Join us for future updates to see what happens with this important statistic.
I know you might be tired of hearing how strong the real estate market is but here is one more interesting number for you. Last month there were only 125 homes sold and transferred to new owners. Rewind to the past, last year where 175 units found new owners. If we go even further back to two years ago, a staggering 230 units were sold. Today, we are witnessing only 55% of homes being sold compared to the booming market right after the pandemic. Low sales numbers are linked to an alarmingly low inventory and struggle for buyers to find affordable homes.
The number of new listings that entered the market last month was 149, which interestingly matches the figure we observed back in March of this year. To put this into perspective, during the years 2020 and 2021, we would typically see over 300 new homes listed for sale. Going further back to 2018 and 2019, the numbers were even more robust, with 470 and 450 homes listed respectively in the month of May. Today's market flow of new listings accounts for only about 32% of the peak numbers witnessed in 2018. We are currently operating with just one-third of the inventory we would normally expect in previous years. Adding to the challenge is the fact that there is a strong and healthy demand from prospective buyers, as millennials reach the age of primary home buying. It's an unfortunate combination of limited supply and increased demand in today's real estate landscape.
Months of Inventory
The real estate market has been on a crazy rollercoaster, with the Months of Inventory once again settling at a low 1.2 months. In an ideal scenario, a healthy market would have 4 to 5 months of inventory, providing enough options for prospective buyers. This is the 26th consecutive month where available homes have fallen short of the 2-month mark. As a result, new buyers are finding themselves in a predicament, struggling to find move in ready properties during the current shortage. Particularly for those seeking fully renovated homes, the situation becomes even more daunting, as multiple offer situations arise, putting buyers against one another in fierce competition.
Number of Showings
Last month the real estate market experienced an extraordinary surge in showings initiated by eager prospective buyers. The crazy figure of 5,783 showings surpassed the previous month of April by an impressive 1,800 showings. What makes this achievement even more remarkable is that it represents the highest number of showings witnessed since May of 2021, marking a significant milestone after two years. Favorable weather conditions and a slight increase in new listings entering the market proved to be the driving forces behind this surge in activity. This exciting development signifies a heightened level of interest and big engagement from the prospective buyers.
Showings Per Listings
The latest statistics reveal an intriguing trend regarding the number of showings per listing, with the current figure standing at 13. This represents a decrease of 2.5 showings compared to April’s number, and a significant decline of 4.5 showings from the highest peak witnessed earlier this year. As we take into account the market's seasonal patterns based on previous years, it is expected that this number will continue to dwindle in the upcoming months. Our projections indicate that by the year's end, the figure will stabilize at approximately 8 to 9 showings per property. For sellers, it is crucial to be mindful of this trend and set realistic expectations when listing their homes for sale later this year. While the optimal selling window may have passed, it's important to note that we are still in a highly favorable sellers’ market, and properties are expected to sell swiftly.
Days On The Market
The current market time continues to impress, with properties averaging 37 days on the market. This figure has consistently remained below the 40-day mark since April of 2022, showcasing the sustained pace at which homes are being sold. As a buyer in this competitive landscape, it is essential to be prepared and act swiftly to secure the house of your dreams. Having your preapproval letter and necessary documents in order is crucial, as many homes are going under contract over the weekend. It's so much easier to have these items prepared in advance rather than scrambling at the last minute to contact your banker. With homes selling rapidly, being proactive and well-prepared will greatly increase your chances of successfully navigating this fast-paced real estate market.
In conclusion, it has been a pleasure sharing valuable insights into the current state of the real estate market. We hope you found this information helpful in navigating the dynamic landscape of buying and selling homes. To stay updated and gain further market knowledge, remember to hit the like button, subscribe, and follow our channels. By doing so, you'll gain access to future episodes and receive regular updates on the ever-evolving real estate market. Talk to you soon and thank you for being a part of our community!