Welcome to Spring! It is nice to welcome a new season and look forward to all that it will hold. As we look at the state of the real estate market this spring, there are many updates to share with both buyers and sellers, as they consider their next meaningful moves. Here’s what I’m seeing in the market right now…
National Housing Inventory
It is no secret or surprise that nationally we are having a housing inventory shortage. Many towns – such as Sarasota, FL, Austin, TX, and Boise, ID – have seen single family home values increase 60% or more since March 2020. The current run up in prices is mostly due to outsized demand for homes with not enough supply.
It can be argued that these are some of the hotter cities in the United States right now, with the likelihood that they are on the cusp of becoming bubbles. This is a different scenario than what we are experiencing locally, so since we are not seeing these extreme increases in our towns, it is not a cause for concern.
Local Housing Inventory
In Hinsdale, inventory is down 27% Q1 2022 versus Q1 2021, meaning there are less homes for realtors to sell. Interestingly though, the number of homes currently pending is actually even with last year at this time. This tells me that we had a lot of inventory, but now it is in a decline.
Similarly, inventory in Clarendon Hills is down 20% Q1 2022 versus Q1 2021. For pending sales though, Clarendon Hills is down 6% in pending sales compared to last year. I interpret this as showing that the pool of Clarendon Hills home inventory is continuing to decrease consistently, and while we had more inventory this time last year, the decline is still taking effect.
Local Sales Prices
While the amount of available inventory is declining, sales prices are steadily increasing. In Hinsdale, median sales prices are up 14.5% in a rolling 12-month period (4/1/21 – 3/31/22.) This median sales price translates to an average price (based on all properties) of $921,301.
For Clarendon Hills, median sales prices are up 16% in a rolling 12-month period (4/1/21 – 3/31/22.) This median sales price translates to an average price (based on all properties) of $550,000.
What Does This Mean for You?
When all is said and done, most of my colleagues and I do not believe that our local markets are in any danger of a bubble. I believe that the real estate market is continuing to right-size itself after the drastic impacts of COVID. My anticipation is that we will see a more balanced market by Fall of 2023.
If you’re at a point now where you are considering buying or selling a home, give me a call. We can discuss the state of the market together, and I can offer my advice on the best path forward for your unique situation. I offer complimentary consultations and love discussing the industry with families in our community, so I can learn more about you and hopefully support you in your next meaningful move. Call at 630-447-9393 or contact me here