Spring is in the air, and with the shift in seasons we also see a shift in the real estate market. This month, I’m diving into the trends we’ve been seeing over the past couple of weeks, as well as what I anticipate we can continue to expect in the coming weeks and months. Real estate is an ever-changing field that continues to ebb and flow, and I am thankful for the opportunity to share the experience with all of you!
General Activity
By and large, I am continuing to see interesting trends in the real estate market. I am seeing heavily attended open houses, multiple offers being put on homes, and a continued (and dramatic) inventory shortage. As it relates to inventory, the month of March 2023 across the whole MLS saw a 13.9% decline in homes available for sale compared to March 2022. This was an improvement over the 17.4% decline we saw though when comparing March 2022 to March 2021.
When we look more locally, comparing March of 2023 to that of 2022, Clarendon Hills had 8.3% more homes available for sale. This was a significant improvement compared to the 48.9% decline between March 2022 to 2021, so this is encouraging news. Other areas that we analyzed include:
- Hinsdale: On pace with March 2022 (down only 2.8%), though behind March 2021
- Oak Brook: 36.6% dip in available homes for sales when comparing March 2023 to 2022
In general, the story of the market continues to be the need for more new inventory. Despite this, the number of properties that are available are often going under contract quickly, which is exciting to see during the rise of the Spring market.
Inflation
One of the most common questions I receive from both home buyers and sellers is surrounding the current state of inflation. Everyone wants to know where inflation is going, and how the government will react. While it appears the government is still focused on services, housing, and employment, the real estate market is telling a different story. The industry is seeing the stock market up this year, Bitcoin and Ethereum rallying over the past three months, and volatility (as measured by the VIX) down under 20. All of these factors seem to be contrary to the narrative we are hearing that the government will keep rates higher for longer.
While we ultimately do not know the answer to this inflation question – yet – predictive data indicates that while the government seems to imply that rates will be kept higher for longer, the market is showing that it does not believe this to be true, and rather believes that inflation will come down as the government is forced to lower rates. Hopefully, if inflation does come down, we can expect rates and mortgage rates to drop as well.
Compass Exclusives
Compass has a unique offering, called Compass Private Exclusives, that are off-market/pocket listings on the Compass platform that only agents can see. This has proven very beneficial for Compass agents, as this allows us to see all of our company’s listings in one place, and have early access to what is arriving on the market!
If you are considering listing and selling your home, contact me so I can share more about this unique offering. Many sellers are excited and motivated by the exclusive listing, as this allows agents to see their home before it hits the market, and ideally drum up interest and bites before officially listing publicly. The same is true for prospective home buyers, as they similarly have the option to see private listings in advance, before they are released generally. As a Compass agent I am very passionate about this offering and the opportunities it presents for both my buyers and sellers!
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We are certainly at a crossroads in the real estate market this Spring, and I am hopeful that we will see rates continue to trend down and inventory trend up, to level the market. I would love to discuss these insights with you further, and hear your thoughts and questions on the current state of the real estate market. Contact me today to start the conversation, as there is a lot we can discuss!