Sue Fox, @Properties. Direct 773.816.1788

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Archive for November, 2014

More choices ahead for Chicago buyers as rally cools

filed under: Buyers, Chicago home sales, Edgewater, First-time buyers, Market conditions, Sellers posted on November 20th, 2014

OR BEST OFFER: OR BEST OFFER: This 5-bedroom Lakeview home, priced at $629,900, had been used as rental house for two decades. It needed some updating, and though it sold quickly in September, it went for $575,000. Buyers can expect more room to negotiate with sellers in 2015, as inventory rises.

OR BEST OFFER: This 5-bedroom Lakeview home, priced at $629,900, had been used as rental house for two decades. It needed some updating, and though it sold quickly in September, it went for just $575,000. Buyers can expect more room to negotiate with sellers in 2015, as inventory rises.

I recently represented a buyer who was looking for a condo in Edgewater. We found a good option, and even though my buyer made a cash offer within a few thousand dollars of the asking price, the seller’s agent kept insisting that there was “a great deal of interest” in this property and that we’d better come up to list price or it would be gone. But the days went by, and despite the alleged tide of interest, no one else actually emerged with a better offer. The seller eventually accepted my buyer’s offer and we are scheduled to close shortly.

A year ago, I wouldn’t have been surprised if, in fact, there were at least 2 or 3 other interested buyers. Inventory was quite tight as sellers held off listing their homes, hoping for prices to climb — and they did. Chicago home prices jumped dramatically in 2013, by more than 11%, and multiple-offer situations became quite common.

But in the last few months, buyers again seem to be gaining advantage as inventory increases. The number of homes on the market is now up more than 5% over last fall, according to MLS data. And new listings have increased each month since March.

This means we are now close to a balanced market in Chicago, in which supply and demand meet in the middle and neither buyers nor sellers have the upper hand. There is now almost a 5-month supply of homes on the market, and most experts consider a 6-month supply to be the critical balance point.

So if you weren’t able to find the home of your dreams this year, don’t give up! A bigger selection of homes for sale, and possibly a slowdown in prices, may be ahead in 2015.

Written by Sue Fox // Please leave a comment.