Elmhurst real estate news & market updates

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Elmhurst Real Estate Update By Tom Makinney Jr.

Elmhurst Market Statistics for May

May property sales were up 12.7% over the same time last year, from 55 in May 2013 to 62 homes sold this year. Prior 12 months sales are up 13.8% at 560 vs. 492 for last year.  Prior 12 months average sales price increased 4.3%, from $431,195 in 2013 to $449,836 in 2014.  The May Average Sales Price was down 6.8%, from $484,720 in 2013 to $451,785 in 2014. The May 2014 vs. May 2013 median price decreased 18.4%, from $435,000 to $355,000. The May average Days on Market (DOM) decreased from 109 in May 2013 to 72 in May 2014.

 

The May 2014 MSI of 7.11 months was at its highest level compared with May of 2013. A comparatively lower MSI is more beneficial for sellers while a higher MSI is better for buyers. Remember, 5.5 months is considered a “balanced” market by most.

 

The Selling Price vs Listing Price reveals the average amount that Sellers are agreeing to come down from their list price. The lower the ratio is below 100%, the more of a Buyer's market exists; a ratio at or above 100% indicates more of a Seller's market. The May 2014 Selling Price vs. List Price of 95.1% decreased slightly from 96.2% in May of last year.

     

Optimism for First Time Buyers

First-time buyers accounted for 30 percent of purchases in March, up two percent from the month before. NAR president Steve Brown believes this number can be higher. "There are indications that the stringent mortgage underwriting standards are beginning to ease a bit, particularly regarding credit score requirements, but they remain a headwind for entry-level and single-income home buyers," he said.

"We also have tight inventory in the lower price ranges where many starter homes are found, but rising new-home construction means some owners will be trading up and more existing homes will be added to the inventory. Hopefully, this will create more opportunities for first-time buyers," Brown said.

Mortgage giant Freddie Mac reports that the average commitment rate for a 30-year, fixed-rate mortgage was hovering at 4.34 percent during March. These historic low rates optimize housing affordability for today's home buyer.

SUMMER SELLING OPPORTUNITIES

Sellers, you have an excellent opportunity to sell your home this season if you have the right pricing strategy in place from the start! Studies show that the longer a property stays on the market, the less the seller will net upon the sale. It is very important to price your property at a competitive market value at the signing of your listing contract. The market is so competitive that even over-pricing by a few thousand dollars could mean that your house will not sell.

An Overpriced Home:
· Minimizes offers
· Lowers agents response
· Limits qualified buyers
· Lowers showings
· Lowers prospects
· Limits financing
· Wastes advertising dollars
· Nets less for the seller

When you are ready, contact us today for a personal market value analysis of your home. No hassles or obligation - just honest advice on how to get top dollar for your home!