According to Chicagoland area Realtors, housing inventory remains low, so well-maintained properties are still moving quickly, but buyers have more time for due diligence than they did during the springtime market.
In October 2022, the number of detached homes under contract fell by 31.8% and the number of houses sold also decreased by 38.1%, compared to this same time last year. This, while average time on market rose by 20.0%
Attached homes under contract also decreased 31.4% and the number of attached houses sold went down 26.2%, compared to October 2021. However, these homes are still moving quickly as the average time on market for attached homes also decreased slightly by 3.0% from this same time last year, from 33 days on market in October 2021 to 32 days on market in October 2022.
"We are seeing a market that is responding to higher interest rates and low inventory – it is balancing out," said Debbie Pawlowicz, president for the Mainstreet Board of Directors. "Buyers can be a bit more selective, and the homes that are in great shape–those that are well cared for, priced correctly or updated thoughtfully – are still going very quickly."
Median prices were also up this October compared to last. The average median sales price for detached homes was $325,000, up 3.2%, and the average price for attached homes was $215,000, up 7.5% from October 2021.
"Buyers now have more room to negotiate sale prices, so even though interest rates are higher, monthly payments may end up coming out to about the same or less than they were just a few months ago," said John Gormley, CEO of Mainstreet. "Buyers and sellers should work with a Mainstreet Realtor to understand the nuances of the local market, navigate negotiations, and explore creative financing options."
Following are communities that saw notable decreases in homes under contract from October 2021 to October 2022:
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Arlington Heights (48.7% decrease in homes under contract)
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Bartlett (64.2%)
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Buffalo Grove (40.0%)
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Downers Grove (56.0%)
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Elmhurst (49.2%)
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Flossmoor (56.5%)
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Glen Ellyn (41.9%)
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Hanover Park (54.8%)
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Lake Villa - Lindenhurst (57.4%)
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Lisle (71.4%)
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Midlothian (46.9%)
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Mundelein (56.9%)
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Naperville (40.9%)
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Niles (40.0%)
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Oswego (48.0%)
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Park Ridge (62.5%)
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Rolling Meadows (48.3%)
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Vernon Hills (54.6%)
REALTORS® should prepare their clients for the reality of today's market and aim to get a clear understanding of their expectations. For example, do your sellers want to sell at a higher price point or move quickly? They may not be able to do both in this market, but you can help them with pricing strategy based on their priorities.