Housing Market Update | May 2023
Are you ready to hear something surprising about the real estate market in Arlington Heights? Despite the challenging times we faced in the midst of the pandemic, sellers were actually more willing to list their properties for sale in April 2020 compared to last month! That's right, more new listings entered the market during the lockdown than just recently. If you're curious to know more about this and other fascinating real estate statistics, then stay tuned for our latest show: "How is the Market in Arlington Heights" May 2023 edition. Get ready to be amazed!
Are you curious about the latest developments in the real estate market of our area? Well, we've got some exciting news for you! The average sold price has reached $450,000, which is an increase of $9,000 compared to last month. However, it's important to note that it's still approximately $10,000 less than what it was at the same time last year. Despite this, it's worth mentioning that the rate of increase has slowed down compared to the $40,000 increase we saw between February and March.
Have you been wondering about the current state of the real estate market in our area? The average asking price has increased by just under $3,000 to reach $445,000. However, it's interesting to note that this is actually $12,000 less than what it was in April of 2022. It's not uncommon for our spring market to exhibit a slower rate of increase in asking prices, especially after big jumps in February and March. During this period, we often see prices leveling off in April and May. Next month we might see our regular market seasonality trends take place.
Sold to Asking Price
The sold price to asking price ratio has reached an impressive 101.2%, which is the highest it's been since June of last year. During that period, we saw a surge in home buyers rushing to secure a new house before the mortgage rates increased. Today's spike in the sold to asking price ratio is a result of the low inventory of homes available for prospective buyers to purchase. Due to the scarcity of options, most listings have ended up with multiple offers, causing buyers to overbid on the asking prices.
Are you curious about the number of homes sold in our area during the past month? Well, the latest data is in, and it's a bit surprising. Only 109 properties were sold and closed in April of 2023, which is a remarkably low number. To put this in perspective, three years ago during the Covid-19 pandemic lockdown, we had 19 more closings than we did last month, a 15% difference in sold units. Interestingly, we had more homes sold in the Northwest suburbs than we did during the pandemic in 2020. Typically, we see anywhere from 170-190 homes sold in our area during April. Unfortunately, the low inventory of homes for sale is hindering us from reaching similar numbers.
The number of new listings entering the market is the most interesting number in our May market update. Surprisingly, during the pandemic in April of 2020, we saw 198 new listings enter the market. In comparison, this April of 2023, only 156 new listings entered the market, a 22% decrease in new homes available for purchase. To put this into perspective, in April of 2018 and 2019, we had over 420 new listings enter the market. So, currently, we're only receiving about a third of the new listings compared to our pre-pandemic years. It's fascinating to note that people were more inclined to list their homes for sale during the pandemic lockdown than they are now. This is a crazy statistic!
Months of Inventory
Are you wondering how many months of inventory we have left in the real estate market? The latest data is showing numbers are not vert good. The Months of Inventory is still hovering at 1.3 months, which is still under 1.5 months of available homes since December of 2021. This means we're still in an inventory crisis, and our area desperately needs more homes for sale to satisfy the high demand from prospective buyers.
Number of Showings
Are you curious about how many showings prospective buyers are requesting in our area? Well, the latest statistics show that last month there were approximately 4,000 showings registered, which is the same as May of last year. However, this is significantly lower than the usual number of showings in April, which is typically between 5,200 to 5,800 each year. The lower number of showings can be attributed to the scarcity of available homes. With fewer homes on the market, buyers are not requesting individual property visits because they cannot find a home they like.
Showings Per Listings
Are you considering selling your home? Pay attention to this important number - the average number of showings per listing. In April of 2023, this number came in at over 15 showings per listing, which is the same as in 2022. However, we are already off the peak number of almost 18 showings in March. Based on seasonality trends, we can expect 9 to 10 showings per listing in July and August. If you want to generate top dollar for your property, there is no time to waste. The best market to sell your home this spring has passed, and with low inventory and high demand, now is the time to get your home on the market as soon as possible.
Days On The Market
The clock is ticking for buyers in our area, as the days on the market for available homes remain low at just 36 days. Although this is only one day longer than last month, it's worth noting that this number has been below 45 days since May of 2021. With such a shortage of available homes, those that are listed are selling fast, leaving buyers with little time to make a decision. If you're in the market to buy, it's important to act quickly and be prepared to make a competitive offer in order to secure your next home.
The current real estate market is facing an inventory crisis with a lack of homes for sale. There are various reasons for this, such as sellers unable to find replacement homes or choosing to stay put. It is important to keep an eye on the market seasonality trends and be aware of the current situation. As a real estate professional, I am here to provide advice and assistance to those looking to buy or sell their homes in this challenging market. If you found this update helpful, please comment below. Your feedback is greatly appreciated. Thank you for reading and see you soon.