Local Deals: 120 * 90

Higher Values, Lower Market Time and 74 Homes Sell

April 27, 2013 - The real estate trend we reported on earlier this year continues. And sellers are going to love seeing the change. Low inventory and a steady influx of new buyers means real estate is selling in record time. Redfin has coined a new term "flash sales" which are those that sell in a very short period of time. And we have plenty of them.

 

Photo: Jameson Sotheby's International Realty - 2117 W. Potomac Listed at $900,000. Sale price: $905,000. Market Time: 9 Days

 

 

The market is indeed now a seller's market. But sellers are slow to jump into the market. Distressed sales (including foreclosures and short sales) had forced values down...way down. The good news for sellers: those values are starting to rebound. And sellers who had listed last year and didn't sell are re-listing now and are selling in record time.

 

 

Photo credit: @properties - 2134 W. Walton. List Price: $799,000. Sale Price: $767,500 Market Time: 8 Days.

 

The market is very competitive now for buyers in the West Town neighborhoods. Bucktown, Wicker Park, Ukrainian Village and East Village are all very desirable neighborhoods filled with qualified people looking for their new home. You just can't schedule your showing fast enough for your buyers. For well-priced properties, you see sales within just a few days and you see multiple offers on those properties.

 

 

Photo: Koenig & Strey 1118 N. Wolcott Condo. Listed for $425,000. Sold for $405,000. Market time 4 days.

 

A client and I saw a penthouse this weekend in East Village. This 2 bedroom condo had received 3 offers within the past 48 hours. It's also listed for less than the owner paid in 2005. Today's market in a nutshell.

To get a true understanding on the real estate market today, we looked at the number of closed sales in the area for March 2012 vs March 2013. This number includes East Village and Ukrainian Village because those neighborhoods are being included in searches for the Wicker Park and Bucktown areas.

Because inventory has been flat, the overall number of closed sales year over year are relatively flat. According to the Midwest Real Estate Data LLC:

March 2012 -  Total # of Closed Sales - 71

March 2013-   Total # of Closed Sales - 74

 

Where you see the shift coming is in the market time and the average value of these sales. Market time now averaging 31 days. Last year market time averaged 120 days.

Single Family Homes: In March 2012 the average value of a single family home sale was $642,000. In March 2013, the average value of a single family home sale was $925,000. We're not seeing the amount of foreclosures and short sales this year forcing property values down. So the average value of the homes being sold is significantly higher than it was last year at this time.

Condominium Sales: For condos the same story is true. In March 2012, the average value of a condo sale was $345,00 due in part to foreclosures and short sales. In March 2013, the average value of a condo sale has jumped to $428,000.

 

New construction is also pushing values up. Positive news for current homeowners; especially those thinking of selling. Not so positive news for those buyers working hard to buy their dream home in the midst of a lot of competition and rising values.

This trend is expected to continue.

 

Published April 27th 2013 by Licensed IL Real Estate Broker & Real Estate Contributor Thyra DeCicco. @properties - Bucktown - 1875 N. Damen Avenue - thyra@atproperties.com.

 

Related:

Wicker Park, Bucktown Real Estate: High Demand Little Inventory

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