Happy New Year - It's almost 2008 and the real estate market will be much different from anything we have seen before. There will be a lot of available inventory, longer marketing times, and lower prices. Now more than ever, you need to get an appraisal from a certified real estate appraiser.
Taking this chance on New Year's Eve to look back at 2007 I decided to post a few statistics on Chicagoland real estate obtained from the Northern Illinois MLS. In 2007 there were a total of 55,720 detached home sales and 42,785 attached homes and condominium sales. This gives us a total of 98,505 sales in the single family market. On average that breaks down to 8,208 sales per month on an annual basis.
The total number of active listings as of December 31, 2007 was 53,838 detached homes, and 33,302 attached homes and condominiums. The total number of active listings in the MLS is 87,140, and that's a lot of listings. On an average basis those listings, represents a 10.61 month supply of available inventory. Good news if you are a home buyer, bad news if you are a seller.
When we say that the real estate market is in "Balance" this means a 3 to 4 month supply of inventory. A 10+ month supply of available inventory is known as an "Oversupply". Expect sales prices to decrease as the market is out of balance, at this time there are more sellers than buyers.
The market has changed and only the most competitively priced homes will be selling soon. How to be sure that your listing is competitive? Get a current appraisal.
Sure it costs $275, however, this is a small price to pay for knowledge that will help you position your house in the current market.
On January 1st we start the long process of our market analysis on the Chicago area. I will be posting the results daily here at the Chicago Real Estate Blog. Check back often I am sure you will find it informative.