AT THE TOP OF THE MARKET
TAKE A QUICK GLANCE AT THE 3 WARNINGS IN MARKET
Inventory levels fell 27.1 percent to 5,956 units but yet Chicago city prices were even with last year. The Median Sales Price held steady at $345,000 while the suburbs had smaller increases in the last 90 days than last year.
QUICK READ TO BRIEF YOU
CHICAGO ASSOCIATION OF REALTORS UPDATE: Nationally, existing home sales recently dropped to a 6-month low, falling 7.2% as buyers struggled to find a home amid rising prices and historic low inventory…. Builders are working hard to ramp up production… housing starts are up 22.3% compared to a year ago—but higher construction costs and increasing sales prices continue to hamper the market having enough new homes… despite high demand for additional supply.
…New Listings in the City of Chicago decreased 12% and Listings Under Contract were down 5.9%. Inventory levels fell 27.1 percent to 5,956 units but yet Prices were even with last year. The Median Sales Price held steady at $345,000. Market Times were down 13.6 percent to 79 days. Sellers were encouraged as Months Supply of Inventory was down 33.3 percent to 2.2 months. Even with Lower Inventory Prices in Chicago remained steady showing a topping out of the market. Meanwhile, across the country, consumers are feeling the bite of inflation and surging mortgage interest rates, which recently hit 4.6% in March, according to Freddie Mac, rising 1.4 percent since January and the highest rate in more than 3 years. Monthly payments have increased significantly compared to this time last year limiting buyer’s ability to pay more; and as housing affordability declines, an increasing number of would-be homebuyers are turning back to the rental market and renewing leases.
THIS CHICAGO MARKT IN A NUTSHELL IS IN THIS ABOVE GRAPH. EVEN AS INVENTORY LEVELS DROPPED 27% PRICES WERE EVEN WITH LAST YEAR - SIGNALING THE MARKET IS HOT BUT PRICES HAVE TOPPED OUT.
NEW LISTING:
A NEW LEED CERTIFIED +PLUS HOUSE PROJECT.
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MORE KEY POINTS AND BRIEF YOU
3 WARNINGS TO SELLER’S WHO HAVE BEEN WAITING TO SELL
WARNING #1 TO SELLER:
CHICAGO PRICES ARE “ABOUT EVEN” WITH LAST YEAR (SEE ABOVE GRAPH) EVEN THOUGHT INVENTORY IS DRASTICALLY LOW. THIS SHOWS A MARKET TOP WAS LIKELY HIT IN THE CITY SINCE SUPER LOW # HOMES FOR SALER HAS NOT CRANKED PRICES UP ANY FURTHER. AS THE FED SIGNALS 5+ MORE RATE HIKES THIS YEAR THE MARKET WILL RESIST FURTHER PRICE INCREASES. THE SUBURBS SHOW A SLOWING OF APPRECIATION SO A FLAT PRICE CURVE IS LIKELY ON THE WAY BY FALL.
PHIL SAYS: “FOR SELLER’S THIS IS A PERFECT MOMENT TO TAKE ADVANTAGE OF A MORE “DESPERATE” BUYER POOL BEFORE RATES PUSH DOWNWARD FURTHER ON PRICES. IN A SELLER MARKET IT’S ALL EASIER TO SELL - YOU RUN THE TABLE OF THE SALES GAME! THIS MEANS EASIER HOME INSPECTIONS, FASTER CLOSINGS, MULTIPLE OFFERS, MORE CASH DEALS… AND “AS IS” CONTRACTS. THIS ALL LEADS TO LESS HASSLE FOR BUYERS AND AN EASY “WALK” FORWARD TO THE CLOSING TABLE AND GETTING PAID OUT. “
THIS STORY HAS A PREMISE TO IT: IF YOU ARE PLANNING TO SELL IN THE NEXT THREE YEARS THIS IS LIKELY YOUR BEST EXIT MOMENT. TEXT ME TO CONSULT FOR A QUICK CONSULT 312-953-6725
HERE IS A GREAT DEAL. MOVE YOUR CASH INTO A INCOME PROPERTY NOW!
FIRST LOOKERS CALL ME NOW AND GET IN EARLY! A Updated brick 3 flat going on market soon in Pilsen’s Heart of Chicago
WARNING #2 TO SELLERS :
MORTGAGE APPLICATIONS STALL BY 33%
SIGNAL #2: MORTGAGE APPLICATIONS AND ORIGINATIONS DROP DRASTICALLY AS RATES RISE. THE # OF LOAN ORIGINATIONS IS EXPECTED TO DROP 33%.
REFINANCES ARE NEARLY DEAD FOR NOW. IN FACT, SOME OF YOUR FAVORITE LENDERS MAY DISAPPEAR THIS YEAR BY MANY PREDICTIONS-DECREASING MENUS’ OF LOAN OPTIONS. VIRTUALLY NO LENDERS LOST MONEY IN 2020 or 2021 BUT THERE WILL SIMPLY NOT BE ENOUGH BUSINESS TO KEEP ALL THE LOAN ORIGINATORS IN PRACTICE IN 22. REMEMBER THE FED HAS ANNOUNCED 6 MORE RATE HIKES THIS YEAR. THIS IS ALL DOWNWARD PRESSURE ON BUYER’S ABILITY TO PAY MORE. - Phil
IF YOUR IN THE INQUIRY GIVE ME A CALL. CLICK HERE FOR THE
WARNING #3 TO SELLERS:
THE NUMBER OF PRICE CUTS HAS INCREASED IN ACTIVE LISITNGS OVER THE LAST 3 YEARS!
SIGNALS ARE FLASHING IN THAT (1) PRICE REDUCTIONS ARE UP THIS MONTH. THIS SHOWS THAT MORE SELLER’S ON THE MARKET RIGHT NOW ARE REALIZING THEY OVERSHOT THE MARKET WHEN THEY CHOSE THEIR LIST PRICE THAN THE PRIOR 24 MONTHS.
NATIONAL ASSOCIATION OF REALTORS: The number of sellers dropping their asking price is growing at a faster clip than in the recent past. About 12% of homes for sale had a price drop during the four weeks ending April 3, according to Redfin. That marks a jump from 9% a year ago.
NOW TO SHIFT OUR FOCUS
OUTSIDE THE CITY TO THE SUBURBS
AND ILLINOIS MARKET.
HERE ARE THREE OTHER MARKETS TO COMPARE TO THE CITY :
OAK PARK, NORTH SHORE, DOWNSTATE ILLINOIS
SUBURB MARKET SNAPSHOTS SHOW HINTS OF PRICES FLATTENING
OAK PARK.
A DROP IN PRICE YEAR ON YEAR -15% THEN -7% THEN -5% THREE MONTHS OF DECREASES IN MEDIAN PRICE.
Oak Park home prices are down - showing a Top was hit last Spring. # of listings is lower but Prices have stabilized/dropped slightly. -Phil
NORTH SHORE. The North Shore (NBAR) market - Lake County area still has increases but of smaller size .
This year has seen a slower increase - roughly a 6% increase. This may be a sign of prices capping out. - Phil
DOWNSTATE. Middle of Illinois Report shows a smaller increases but steady.
Still increasing at a slower rate. After a fewer smaller increases Spring has still delivered a moderate 5.7% uptick. Again, if you look at the chart you can see an All Time High is likely hit knowing where rates and inflation are now. - Phil
A PICTURE IS WORTH A MOMENT OF REFLECTION.
Chicago Inventory # homes for sale visually.
If you stop and soak up the reality: The inventory of active listings was down over 50% compared to pre covid. Then look back over time to 2010 when there was well over 10 months of properties on the market. WOW. What a change for buyers and sellers. - Phil
Again, this is a Seller’s paradise. Everything is better and easier when selling in this market - easy inspections, as-is offers, multiple offers, fast closings. etc…
Want to Buy a Foreclosure?
Check out the latest stats on Foreclosures - they tell the story of the market in another clear graphic.
RESOURCES FOR LANDLORDS HERE - DOWNLOAD DOCUMENTS AND MORE
Just for you.
To help you keep your leases and disclosures all up to date here are documents for you! New 2022 uploads are in this link of : Chicago lease, lead paint and radon disclosures, applications, security deposit interest form, etc. it stand out
Updated 2022 Chicago LANDLORD Forms In Link Below.
The Chicago Association of Realtors rewrites these documents each year to keep up with the changes in City policy each year. The Files are here.
Also, if you have an eviction coming up I have a great attorney to recommend and some advise for you and documents that lay out the process for you.
Give me a call about using “Cash for keys” to recover your unit ALOT quicker than going to eviction. Here is a basic article explaining what “Cash for keys” is. Read it over and call me.
JUST LISTED/FOR SALE
COOL! NEW +PLUS HOUSE PROJECTS
Two three bed homes on the only Cul-De-Sac block in River’s Edge of East Pilsen have arrived. The Jefferson Playlot Park is steps out your door and the Metra station is 3 blocks. Walk to the South Loop, Pilsen Fine Dining, Radius Nightclub, Whole Foods, Roosevelt District. You have it all here in this location with the highest quality construction in Pilsen condos in years. In these floorplans you can see the excellent layouts! You can see that each unit offers 3 beds 2.1 baths. There is roof access for a deck on the roof and also access to the garage roof to offer the first floor unit outdoor space.
NEW GREEN, HEALTHY HOMES IN FOREST PARK
Near downtown Forest Park come two new construction homes. There has been less than 5 new construction homes in Forest Park in the last year … this is your chance to call early and customize tile, paint and lights!
Many green features will be included in this home and smart home systems are options. It will also have a healthy air recirculation system, and low VOC products to improve air quality and make your home a special place. Call now for info.
BUYER ALERT!
NEW PILSEN 3 FLAT ABOUT TO HIT MARKET
Get FIRST LOOK.. Call now. 312-953-6725
This is really a great find for an investor or live in owner. The second floor is a HUGE 4 bed 2 bath. Live in it and collect two rents off the lower 2 bed 1 baths and own for under $1500 a month!
2320 W 24th Street - Pilsen 4 Unit
This is now for sale $580,000. This legal four unit has updates throughout and sits on a full sized lot just steps from the Classic Restaurants in Heart Of Chicago. Just took a contract: Backup offers welcome.
4 UNIT UNDER CONTRACT - BACKUP OFFERS WELCOME.
The Cullerton 3
3 UNIT NEW CONSTRUCTION IN PILSEN
Three new construction jumbo three bed condominiums will be delivered in luxury at the end of 2022. These units are built with many of the standards of Green Certified homes. This location has an excellent walk score - the pink line el stops are under a 3 minute walk.
YES! IT IS PROVEN! TRULY GREEN HOMES WILL RESELL FOR MORE! CLICK HERE FOR THE PROOF.
PROPERTY SALES DATA FOR GEEKS
For the Geeks Out there who want the2021 Backend Realtor Data. Here are the Final 2021 Numbers From the Mls
CLICK ON THE IMAGES TO SEE THE FULL 2021 MLS SALES REPORT WITH ALL DATA SETS
