2013 has been a good year for real estate in Wheaton, IL! People are constantly asking about the local housing market….is it a buyer’s market or seller’s market?….what’ going on with pricing?….
Well, we are 3/4 of the way through the year and it has been an interesting ride. Last year on October 1, 2012, the Wheaton housing stats for single family homes were as follows:
- Months supply of inventory equaled 5.18 months supply, which is an over supply of inventory and buyer’s market
- Average sale price through October 2012 was $358,680
A year later, through October 1, 2013:
- Months supply of inventory is 4.18 months supply of inventory, which is considered a balanced market trending to a buyer’s market considering that in July 2013 the months supply of inventory was down to 3.68 months supply
- Average sales price through October 2013 is $368,992, which is 2.87% higher than in 2012
To say that I have a crystal ball looking into next year…..would be a stretch.
Right around the same time of year last year, a few companies moved into the Chicagoland area with the mandate to purchase around 3000 homes each. They were backed by major billion dollar investment companies, who decided to buy homes typically priced from $150,000-$275,000 and with 3 bedrooms. These companies paid cash and intend on holding the properties for around 7 years all the while renting the homes out. Talk about a cash cow! These companies not only attacked the Chicago market, but Atlanta and other parts of the country as well. Nobody knew this was coming and they single handily took the Chicago area market out of buyer’s market and put many of the communities in a seller’s market. Just think…6000 homes sold between December and April, and most of those seller’s now have to buy a move up home. That’s 12,000 homes, a game changer. That is now history.
To think this is going to happen again would not be a very wise approach. It created urgency in the market place, and wiped off most of the distressed inventory which we desperately needed. There are still foreclosures and short sales out there, but not nearly as much as 1 year ago and not nearly as attractive. The current market still has some legs but don’t expect huge appreciation moving forward. I would think over the next 12 months we are going to see a balanced market overall. In Wheaton, I think it will depend on the price point and condition. If in good condition and priced under $500,000, homes should sell in 2-3 months. Take a look at the price point breaks in Wheaton (2013):
- August 1 there were 74 homes on the market with average days on market of 164 days and 2.80 months supply of inventory
- September 1 there were 68 homes on the market with average days on market of 173 days and 2.50 months supply of inventory
- October 1 there were 76 homes on the market with average days on market of 153 days and 2.86 months supply of inventory
- August 1 there were 89 homes on the market with average days on market of 143 days and 3.73 months supply of inventory
- September 1 there were 82 homes on the market with average days on market of 156 days and 3.30 months supply of inventory
- October 1 there were 80 homes on the market with average days on market of 147 days and 3.92 months supply of inventory
- August 1 there were 74 homes on the market with average days on market of 218 days and 6.94 months supply of inventory
- September 1 there were 74 homes on the market with average days on market of 210 days and 6.39 months supply of inventory
- October 1 there were 80 homes on the market with average days on market of 209 days and 6.81 months supply of inventory
By reviewing these numbers, it is clear to see the difference in Wheaton among the different price ranges and the current market climate. With the top price range of the Wheaton struggling, it will be tough to see much more than 2-4% appreciation in the upcoming year. That being said, I have no crystal ball 🙂
Thanks for reading.
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