January 2024 Week 4

Matthew Litzenberger a third generation Realtor with Coldwell Banker Realty helps buyers and sellers understand Chicago Real Estate Market metrics. Follow along for weekly updates on all things Chicago Real Estate by clicking here.

Introduction

Welcome to week 4 in our 2024 weekly series aimed to help understand current Chicago Real Estate Market Metrics. While there are many metrics to talk about in the world of real estate, today we will look at only four: speed, demand, supply and negotiations. Let’s get started!

Speed | Healthy Market Time Range

Detached ~ 68 Days (Dec 23′)

Attached ~ 68 Days (Dec 23′)

First, market time is a metric that showcases speed. Whether a listing was priced too low, priced properly or priced too high. If a listing surpasses average days on market it is a check engine light that your listing maybe overpriced.

Demand | Under Contract

Detached Single = 167 Properties (Jan 21st – 27th)

Attached Single = 250 Properties (Jan 21st – 27th)

Secondly, under contract helps answer the question, “In our current market, how many buyers are buying?” Showcasing the heartbeat of the real estate market. Last week, Jan 14th – 20th, saw 129 detached single properties go under contract and 202 attached single properties go under contract. Interestingly, demand metrics become more insightful when compared and contrasted with supply/inventory metrics.

Supply | Inventory of Homes for Sale

Detached Single = 1,866 Properties (Jan 21st – 27th)

Attached Single = 2,532 Properties (Jan 21st – 27th)

Next, supply showcases how much inventory is avalible for buyers and how much competition sellers are up against. Additionally, Months of Inventory, Homes For Sale, New Listings and Absorption Rate are also other key metrics in the conversation of supply.

Negotiations | Percentage of Original List Price Received

Detached Single ~ 96.9% (Yearly Avg) & ~ 96.0% (Dec 23′)

Attached Single ~ 98.1% (Yearly Avg) & ~ 96.5% (Dec 23′)

Lastly, Percentage of Original List Price Received to Closed Price is a metric that showcases what the average accepted purchase price is relative to the list price. How much below asking price can an offer go while still getting accepted? How much would one have to offer above ask in order to be an above average purchase price?

The End | Have A Great Day!

Please note all of these metrics are along a spectrum as opposed to a specific number. Below is “The Weekly Market Activity Report” which is a research tool reflecting residential real estate activity within the 77 officially defined Chicago community areas provided by the Chicago Association of Realtors®. It is essential to keep in mind that real estate markets can vary across neighborhoods and property types within a city. In conclusion, economic conditions and external factors can influence market trends. Staying updated on these metrics and trends is crucial for making informed decisions.

January 2024 Week 3 

Matthew Litzenberger a third generation Realtor with Coldwell Banker Realty helps buyers and sellers understand Chicago Real Estate Market metrics. Follow along for weekly updates on all things Chicago Real Estate by clicking here.

Introduction

Welcome back to the third installment of our 2024 weekly series aimed to help understand current Chicago Real Estate Market Metrics. While there are many metrics to talk about in the world of real estate, today we will look at only four: speed, demand, supply and negotiations. Let’s get started!

Speed | Healthy Market Time Range

Detached Single ~ 68 Days (Dec 23′)

Attached Single ~ 68 Days (Dec 23′)

First, market time is metric that showcases speed and whether a listing was priced too low, priced properly or priced too high. If a listing surpasses average days on market it is a check engine light that your listing maybe overpriced.

Demand | Under Contract

Detached Single = 136 Properties (Jan 14th – 20th)

Attached Single = 212 Properties (Jan 14th – 20th)

Secondly, under contract helps answer the question, “In our current market, how many buyers are buying?” Showcasing the heartbeat of the real estate market. Last week, Jan 7th – 13th, saw 147 detached single properties go under contract and 196 attached single properties go under contract. Interestingly, demand metrics become more insightful when compared and contrasted with supply/inventory metrics.

Supply | Inventory of Homes for Sale

Detached Single = 1,877 Properties (Jan 14th – 20th)

Attached Single = 2,512 Properties (Jan 14th – 20th)

Next, supply showcases how much inventory is avalible for buyers and how much competition sellers are up against. Additionally, Months of Inventory, Homes For Sale, New Listings and Absorption Rate are also other key metrics in the conversation of supply.

Negotiations | Percentage of Original List Price Received

Detached Single ~ 96.9% (Yearly Avg) & ~ 96.1% (Dec 23′)

Attached Single ~ 98.1% (Yearly Avg) & ~ 96.5% (Dec 23′)

Lastly, Percentage of Original List Price Received to Closed Price is a metric that showcases what the average accepted purchase price is relative to the list price. How much below asking price can an offer go while still getting accepted? How much would one have to offer above ask in order to be an above average purchase price?

The End | Have A Great Day!

Please note all of these metrics are along a spectrum as opposed to a specific number. Below is “The Weekly Market Activity Report” which is a research tool reflecting residential real estate activity within the 77 officially defined Chicago community areas provided by the Chicago Association of Realtors®. It is essential to keep in mind that real estate markets can vary across neighborhoods and property types within a city. In conclusion, economic conditions and external factors can influence market trends. Staying updated on these metrics and trends is crucial for making informed decisions.

How Is The Chicago Real Estate Market?

Monthly Indicators December 2023 | Residential Real Estate

Speed | Healthy Market Time Range:

~ 67 days(yearly avg) ~68 Days(month of Dec 23′).  If you are a seller and go beyond average market time you are either: 1) an outlier (ie. a distressed or luxury property) or 2) overpriced. Evidently, if the property was worth the list price, “Why have showings decreased on a listing?” additionally, “Why has the listing, not received any offers?”  It is not a lack of creativity or a lack of effort or even a lack of knowledge on the real estate partitioners’ part. It’s because the market has spoken in loud silence. They have seen our listing and have said, “No thank you.” We need showings to get a contract.

Demand | Under Contract:

1,118 properties (Dec 2023) Under Contract showcases demand helps explain, “How many buyers are buying?” Another example is, under contract is the heartbeat of the real estate market. With this in mind comparing the month of Dec 22 vs Dec 23: Buying Demand has increase +1.7% (see Under Contract Chart below) Next up is supply because demand metrics become insightful when compared in contrast with supply/inventory metrics.

Supply | Inventory of Homes for Sale:

 4,236 properties (Dec 2023)  This shows that the supply in the Chicago Market is 4,236 and the demand is 1,118. Henceforth, if we take 4,236 supply and divide that by 1,118 demand we get ~ 3.7889. The insight to take from this is that a buyer in Chicago right now has the opportunity to “look around” at ~3.7 properties and select which one they want from those options. Additionally, Dec 22′ vs Dec 23′ saw a decrease of -26.2%; to this end inventory is dwindling. Buyers do not have as many options as they did in 2021 or 2022. Lastly, let us look at negotiations.

Negotiations | Percentage of Original List Price Received:

96.3% (Dec 23′)  ~97.6% (yearly avg) What does this mean? A question anyone asks when purchasing any product is: “Do you think is a good deal?” or “How much do you think the seller is willing to “negotiate?” Good question. Properties sell for what they are worth; therefore, let us look at the data. This metric looks at the 1,485 closed/sold properties in the month of December 2023. Out of those sold properties, they sold between ~96.3% (Dec 2023)  ~97.6% (yearly avg)  of the original list price.

The End | Blessings & High Fives!

Below is the report filled with words, charts, and graphs that I look at to see where the market is. In closing, it’s essential to keep in mind that real estate markets can vary across neighborhoods and property types within a city. Additionally, economic conditions and external factors can influence market trends. Staying updated on these metrics and trends is crucial for making informed decisions.

January 2024 Week 2 | Demand Increases

Matthew Litzenberger a third generation Realtor with Coldwell Banker Realty helps buyers and sellers understand Chicago Real Estate Market metrics. Follow along for weekly updates on all things Chicago Real Estate by clicking here.

Introduction

Welcome back to the second installment of our 2024 weekly series aimed to help understand current Chicago Real Estate Market Metrics. While there are many metrics to talk about in the world of real estate, today we will look at only four: speed, demand, supply and negotiations. Let’s get started!

Speed | Healthy Market Time Range

Detached Single ~ 68 Days (Dec 23′)

Attached Single ~ 68 Days (Dec 23′)

First, market time is metric that showcases speed and whether a listing was priced too low, priced properly or priced too high. If a listing surpasses average days on market it is a check engine light that your listing maybe overpriced.

Demand | Under Contract

Detached Single = 147 Properties (Jan 7th – 13th)

Attached Single = 196 Properties (Jan 7th – 13th)

Secondly, under contract helps answer the question, “In our current market, how many buyers are buying?” Showcasing the heartbeat of the real estate market. Last week, Jan 1st – 6th, saw 103 detached single properties go under contract and 115 attached single properties go under contract. Interestingly, demand metrics become more insightful when compared and contrasted with supply/inventory metrics.

Supply | Inventory of Homes for Sale

Detached Single = 1,917 Properties (Jan 7th – 13th)

Attached Single = 2,485 Properties (Jan 7th – 13th)

Next, supply showcases how much inventory is avalible for buyers and how much competition sellers are up against. Additionally, Months of Inventory, Homes For Sale, New Listings and Absorption Rate are also other key metrics in the conversation of supply.

Negotiations | Percentage of Original List Price Received

Detached Single ~ 96.9% (Yearly Avg) & ~ 96.0% (Dec 23′)

Attached Single ~ 98.1% (Yearly Avg) & ~ 96.5% (Dec 23′)

Lastly, Percentage of Original List Price Received to Closed Price is a metric that showcases what the average accepted purchase price is relative to the list price. How much below asking price can an offer go while still getting accepted? How much would one have to offer above ask in order to be an above average purchase price?

The End | Have A Great Day!

Please note all of these metrics are along a spectrum as opposed to a specific number. Below is “The Weekly Market Activity Report” which is a research tool reflecting residential real estate activity within the 77 officially defined Chicago community areas provided by the Chicago Association of Realtors®. It is essential to keep in mind that real estate markets can vary across neighborhoods and property types within a city. In conclusion, economic conditions and external factors can influence market trends. Staying updated on these metrics and trends is crucial for making informed decisions.

January 2024 Week 1

Matthew Litzenberger a third generation Realtor with Coldwell Banker Realty helps buyers and sellers understand Chicago Real Estate Market metrics. Follow along for weekly updates on all things Chicago Real Estate by clicking here. 

Introduction

Today is the first article installment for 2024 in our weekly series aimed to help understand current Chicago Real Estate Market Metrics. While there are many metrics to talk about in the world of real estate, today we are going to look at only four: speed, demand, supply and negotiations. Let’s get started!

Speed | Healthy Market Time Range

Detached Single ~ 68 Days (Dec 23′)

Attached Single ~ 68 Days (Dec 23′)

First, market time is metric that showcases speed and whether a listing was priced too low, priced properly or priced too high. If a listing surpasses average days on market it is a check engine light that your listing maybe overpriced.

Demand | Under Contract

Detached Single = 104 Properties (Jan 1st – 6th)

Attached Single = 123 Properties (Jan 1st – 6th)

Secondly, under contract helps answer the question, “In our current market, how many buyers are buying?” Showcasing the heartbeat of the real estate market. Interestingly, demand metrics become more insightful when compared and contrasted with supply/inventory metrics.

Supply | Inventory of Homes for Sale

Detached Single = 1,857 Properties (Jan 1st – 6th)

Attached Single = 2,377 Properties (Jan 1st – 6th)

Next, supply showcases how much inventory is avalible for buyers and how much competition sellers are up against. Additionally, Months of Inventory, Homes For Sale, New Listings and Absorption Rate are also other key metrics in the conversation of supply.

Negotiations | Percentage of Original List Price Received

Detached Single ~ 96.9% (Yearly Avg) & ~ 96.0% (Dec 23′)

Attached Single ~ 98.1% (Yearly Avg) & ~ 96.5% (Dec 23′)

Lastly, Percentage of Original List Price Received to Closed Price is a metric that showcases what the average accepted purchase price is relative to the list price. How much below asking price can an offer go while still getting accepted? How much would one have to offer above ask in order to be an above average purchase price?

The End | Have A Great Day!

Please note all of these metrics are along a spectrum as opposed to a specific number. Below is “The Weekly Market Activity Report” which is a research tool reflecting residential real estate activity within the 77 officially defined Chicago community areas provided by the Chicago Association of Realtors®. It is essential to keep in mind that real estate markets can vary across neighborhoods and property types within a city. In conclusion, economic conditions and external factors can influence market trends. Staying updated on these metrics and trends is crucial for making informed decisions.