Arlington Heights Housing Market Update | July 2023
Do you find yourself wondering if home prices are still soaring? Are you curious about the latest trends in the ever changing real estate landscape? Are you getting ready to purchase real estate this year? Welcome to How is Market in Arlington Heights July 2023 Edition. Whether you're a seasoned homeowner or a curious first-time buyer, this video is made just for you.
Last month, we witnessed a remarkable surge in sold prices, delivering excellent news for homeowners. The average sold price skyrocketed to $498,000, marking a significant $25,000 increase compared to May. This impressive leap translates to a remarkable 5.28% rise in just one month! This surge be attributed to a combination of factors: the lack of available homes and many homebuyers adjusted to the higher interest rate environment already. It's worth noting that a considerable portion of the contracts closed in June were initially negotiated back in April when demand was at its peak. We're thrilled to provide you with these valuable insights, as we believe it's essential to keep you informed about the ever-changing dynamics of the real estate market. +++
Let's dive into the fascinating realm of asking prices in our area! We witnessed the average asking price reached an all-time high of $493,000. The rate of increase is truly impressive, with a big surge of over $26,000, equal to 5.68% Motivated by the previous closed prices, which exceeded their initial list prices by thousands of dollars, sellers entered the market with higher asking prices. And many of these sellers were rewarded handsomely. They not only received multiple offers but also saw their final closed prices surpass their already ambitious asking prices. Buyers are still willing to compete fiercely for desirable properties. This market continues to display remarkable resilience, and we're excited to keep you informed as we navigate through these exciting times together. ++++
Sold to Asking Price
Let's shift our focus to the sold-to-asking price ratio. In the previous month, this ratio stood at a commendable 101%. Although it still surpasses the 100% mark, it did experience a slight decrease of over 0.5% compared to May. While multiple offers situations on properties are still present, it's worth noting that sellers are receiving fewer offers compared to the spring market. During the months of March and April, properties were generating 12 to 16 offers after entering the market. However, the market has changed a bit and now homes are getting between 2 to 5 offers per listing. We are still operating within a robust seller's market. Winning a multiple offer round may not necessarily require offering an $50,000 to $70,000 over the asking price. The market seasonality trends have shown up, providing a more balanced playing field for buyers. Our team is here to guide you through the process and help you make informed decisions
Let's take a closer look at the units sold statistics for the previous month. In June, a total of 135 homes were sold, which is 10 more than the previous month of May. To provide some context, last year saw 35 more closings during the same period. Additionally, if we go back two years ago, we observed over 100 homes being closed in the same month. These comparisons underscore the impact of the limited inventory situation in our area. It's evident that there simply aren't enough homes to satisfy the needs of eager buyers who are actively seeking properties in our area. Stay tuned for further updates and strategies to help you make the most informed decisions in this dynamic real estate environment.
Last month, only 169 homes were listed for sale, which is 100 units less than last year and roughly half the number from 2021. Despite strong demand for move-in ready starter homes, homeowners are cautious about capitalizing on high sales prices and not listing their properties for sale. Typically, higher sale prices would mean more homeowners interested in selling but right now potential sellers are struggling with finding replacement homes. We will monitor the market and keep you informed of future changes to the number of listings coming in. ++
Months of Inventory
The months of inventory and days on the market continue to hover around record lows, signaling a persistently robust seller's market in our area. Currently, there is only 1.2 months of available homes, and on average, properties stay on the market for 38 days. These figures reinforce the strength of the seller's position in today’s market. There are no indications of an impending market crash or significant price reductions in the near future. The market remains favorable for sellers, and the limited supply coupled with relatively quick sales suggests a continued stability in prices.
Number of Showings
Now, let's shift our attention to the demand from prospective buyers. We observed a significant decline in showings last month, with approximately 2,100. fewer showings compared to May. This represents a substantial 39% decrease in showings from month to month. We've noticed a surge in reported travel and overbooked flights, indicating that some buyers, unable to find properties, have opted to take a break and enjoy long-awaited summer vacations instead. There is potential for a resurgence in buyer activity. If interest rates experience a slight decrease, we anticipate these buyers returning to the fall real estate market, ready to resume their search for the perfect property.+++
Showings Per Listings
Despite the overall drop in the number of requested showings, it's important to note that the number of showings per listing has remained remarkably high, exceeding 13 showings per property. This unusually high figure is a direct result of the limited inventory available in the market. Typically, we would expect to see around 8 to 9 showings per listing. However, the current demand and scarcity of homes have led to a surge in showings per property, reflecting the intense competition among buyers.