Palatine home sales brisk as market time decreases 47%

Palatine real estate witnessed another strong month in home sales as median sale price bumped up slightly and the positive pricing trends remained strong. The number of available homes for sale now favors sellers in most price points and distressed listings are rapidly disappearing from the marketplace. Meanwhile, mortgage rates continue to rise.

 MARKET SNAPSHOT

Median sales price increased slightly and the 12-month rolling average rose 11%

Market time has plummeted 47.8% as buyers react to thinning inventory

The number of new listings in the predominant sale category of homes has decreased 3.7%

Under contract and closed sales continue solid gains established this year

Average mortgage rates have increased for a 30-year fixed loan from 3.4% in April to 4.5% in August

Here is the story behind the headlines:

MEDIAN SALE PRICE: The median sales price for homes in the Palatine area rose 1.9% year over year to $184,000. However, the 12-month rolling average was up a healthy 11% to $172,000 showing that positive gains continue this year. The strongest pricing category is lower-priced attached properties (condos, town homes, duplexes) which have gained 32.8% since August 2012.

CLOSED SALES:  Closed sales are up 4.5% to 117 for the month. This is a decline from July, which was the strongest sales month in the last 5 years. Traditional sales of homes have had a strong increase while short sales and foreclosures have remained flat.

MARKET TIME: Market time – the number of days from listing to contract date — has decreased yet again to 76 days from 146 days in August 2012, and down 69% from the peak of 245 days reached in September 2011. Homes listed between $255,000 and $355,899 are selling on average in 35 days. Experts view August as typically a slower month as many families go on vacation before school begins.

PERCENT ORIGINAL LIST PRICE: As market time decreased, Percent of Original List Price rose to 96.5% in August. This measure is up from 88.7% two years ago, when many sellers received low-ball offers from buyers who assumed they were desperate to sell.

Foreclosures are in high demand as evidenced by their selling price. The average Percent of Original List Price for the 23 foreclosures sold during the month was 101.6%.

UNDER CONTRACT:  Properties under contract continued the positive momentum in Palatine real estate as 116 properties went under contract during the month. The 12-month rolling average shows strong positive trends continuing since the turnaround in early 2011. There are gains in all price points.

NEW HOME LISTINGS: Overall, there were 165 new properties listed during the month, up 17%. The predominant category of home sales in the Palatine area is the traditional sale (as opposed to distressed sales) of attached single family homes. This category fell slightly year over year as sold and under contract properties outpace new listings. The sector with the most growth was the traditional sale of detached homes in the price range $355,900 and above.

INVENTORY: Inventory for the total Palatine real estate market stands at 3.4 month’s supply, less than half the supply of one year ago. Inventory of homes listed below $355,900 ranges between 1.8 and 4 month’s supply.

Properties in the most demand are attached homes in the lower price range of $139,899, especially foreclosures.

As we've reported previously here is the standard definition of a buyer’s vs. a seller’s market: Buyers are favored at 7+ months and homes continue to see downward pressure on pricing. At 5-6 months the market is “balanced” where both buyers and sellers have equal strength. Inventory at 4 months or less favors the home seller, as buyers scramble to purchase the few properties that are on the market. In this scenario home prices usually appreciate.

Katie Howard is Marketing Director at Prudential Visions Realty in Barrington. Whether you are buying, selling, investing, renting or relocating, Prudential Visions can help with all your real estate needs. Visit us at: http://bestpalatine.com