Arlington Heights Market Update | March 2023

It's Springtime and that means the market is heating up. Inventory is low, rates are high, and buyers are making multiple offers. Let's talk about the ups and downs of the current market conditions and how it affects your chances of buying or selling a home. I'm going to talk about what's been happening in the market lately. Specifically, low inventory, higher rates, and multiple offer situations. 

Sold Prices

In February, we saw a drop in recorded sales prices to four hundred four thousand and nine hundred dollars. However - get ready for some exciting news! Most of the contracts that closed were negotiated back in January and with multiple offers on many properties over the last 2-3 weeks it's likely those sold prices closing this March or April will reflect an increase from what was seen last month. To put things into perspective - despite worries about inflation these average Northwest property values actually dropped by one and a half percent compared to one year ago; a decrease of less than six thousand since February 22! It looks like two thousand twenty three is gearing up to be quite the spring market indeed!  

Asking Prices

With asking prices dropping significantly from four hundred twenty five to four hundred nine thousand last month.  But the market has held strong against inflation it looks like our market has remained relatively stable over the wintertime. This could change soon! Spring typically brings an upturn: last year saw as much ten percent increase in asking prices in March and April alone due to sellers' renewed confidence. We're already beginning to see signs of this reflected in higher priced new inventory entering the market now and multiple offers rolling in.

Sold to Asking

Sold Price to asking price ratio - Last month, prospective buyers of the average home priced around four hundred thousand were fortunate enough to capitalize on nearly a one and a half percent discount off asking prices - that's approximately six thousand in savings! However, if those same buyers had waited just another few weeks with their decision-making process, they could have potentially been forced into paying an amount over the listed price due to multiple offer situations like we saw over the last 2-3 weeks. It looks as though similar trends will follow last year’s market and next month's figures may come even higher than hundred percent. Make sure you stay informed, so you don't miss out on your dream house! 

Units Sold

Last month marked a stark drop in property sales - sixty six units sold, which is more than half of what was seen just two years ago. This low number has not been witnessed since our records began seven years prior and further solidifies the mortgage applications trend currently at a 28 year-low. Though buyer demand remains steady, lack of housing options paired with rising costs are severely limiting potential buyers from taking action on their dream home purchase. Once inventory rebounds, we should witness an increase in closed/sold transactions once again!

New Homes

 Last month, the number of new homes becoming available on the market was dramatically lower than before - only one hundred nineteen listings! That's a drop of about forty percent from pre-pandemic levels when we saw two hundred ninety to three hundred ten homes becoming available. With millennials hitting their peak home buying age and such low inventory entering into the market, prices are expected to rise significantly over the next few months. The current inventory crisis will likely result in higher prices throughout this spring season and beyond.

Inventory

For the last four years, inventory levels have been steadily dropping as buyer demand has increased. The number of available listings is currently at 1.2 months - a forty four-month low! Expect this to drop even further in the next few months; now's definitely an advantageous time for home sellers and those looking buy need to be ready with all their paperwork handy if they want any chance of success in making a purchase offer soon.

Showings

Last month’s showing number came is at three thousand two hundred property visits. Despite a slight increase in showings from the month before, our local market experienced a significant decrease of more than twelve hundred compared to numbers one year ago. This trend can be attributed largely to insufficient listing inventory - when homes stay on the market for longer periods and buyers have greater selection options, we see an overall spike in showing activity. As it stands now however there is strong buyer demand with many calls coming to our office expressing frustration due to limited choices available  on the market right now.

Showings Per Property

Last month saw a major increase in per property showings, going from thirteen to sixteen! That's three times higher than the average market 4-5 showings. Sellers are in a strong position when putting their home on the market. The high demand will have sellers feeling confident and unwilling to budge on discounts; this trend may even increase from here as initial asking prices are becoming increasingly accepted without negotiation. As a buyer you have to be aware of this trend for the next few months while drafting your initial offer.

Days on the market

 Days on the market is remaining steady at low number of thirty-four. We're seeing homes selling in as little as 2-3 days after being listed, with multiple offers on the table. It's not uncommon for houses to get twenty+ bids, a big chunk of them coming from cash buyers who can close quickly – sometimes within fifteen days! Spring seasonality and other metrics point towards an even more intense real estate market over the next sixty to ninety days. If you are a homeowner, Get ready to list your property now so you don't miss out on this amazing opportunity!

 Spring is here, and with it comes an exciting time in the real estate market! Sellers should make sure their homes are prepped and ready before buyer demand fades away. For those looking for new properties, be prepared with all your documents in order – taxes filed; lender preapproval secured – so that you can take decisive steps toward securing the home of your dreams. For any more questions or advice related specifically to what you need,  feel free reach out - I'd be glad help guide you through every step along the way! Be sure hit subscribe/ comment & share if enjoyed watching this month’s video episode and thank you again – until next one