Spring is traditionally the busiest season for real estate. Buyers, strategizing and preparing their move all winter, come out in full force in search of their dream home. Homeowners, in anticipation of the increased demand, are motivated to list their house for sale and move on to the home that will better fit their needs.
New data from CoreLogic shows that even though buyers came out in force, as predicted, homeowners did not react to the increased demand and list their home in time to meet the buyers' needs. According to Frank Nothaft, Chief Economist of CoreLogic, the slow down of the sales growth was not due to a lack of affordability, but rather a lack of inventory. Data shows that as of Q2 of 2017, the unsold inventory as a share of all households is the lowest Q2 number in over 30 years.
Also, according to the latest report from the National Association of Realtors, overall inventory across the U.S. is down for the 25th consecutive month and now stands at a 4.3-month supply.
How about the local Chicago market?
Market conditions in the starter and trade-up home markets in the Chicago area are in line with the median US figures (creating a seller's market), but conditions in the luxury and premium markets are following an opposite path. Premium homes in the city and most suburban areas are staying on the market longer with ample inventory. This suggests a buyer’s market.
Buyers are out in force, and there has never been a better time to move-up to a premium or luxury home. If you are considering selling your starter or trade-up home and moving up this year, let’s get together to discuss the market conditions in the Chicago area.