Buffalo Grove Real Estate update – May 2016

Buffalo Grove Real Estate Update

Buffalo Grove real estate sales remain healthy through the first five months of 2016, but inventory remains extremely tight with new listings down from last year. Positive indicators are that market times remain favorable and homes under contract and closings are above last year’s pace. I do find it fascinating when I see nice homes that are available that aren’t being snatched up by potential Buyers. There are some very nice homes that have been available for the past couple of months that are not yet under contract.

Buffalo Grove Single Family Homes

Average Market Time

The time a single family home remains on the market in Buffalo Grove is 62 days which is down significantly from 80 days in May 2015. Buffalo Grove had the lowest market time in the Chicagoland area in 2015, and while it may not be the lowest in the area, 62 days is a pretty solid figure.

Buffalo Grove Real Estate Single Family Homes Average Market Time

Months Supply

As of June 1, 2016, there is a 3.0 months supply of single family homes for sale in Buffalo Grove compared to 4.0 last year. Anything under 5 months is considered a seller’s market.

Buffalo Grove Real Estate Single Family Homes Months Supply

Buffalo Grove Real Estate Homes For Sale

At the end of May 2016, there are 111 single family homes for sale in Buffalo Grove, compare that to the 137 available at this time last year and you’ll see that inventory remains very low. There aren’t enough homes to supply the current buyer demand, which provides for a very competitive environment.

Buffalo Grove Real Estate Single Family Homes For Sale

New Listings

71 single family homes were listed for sale in May of 2016, compared to 82 new listings last year. While this new inventory is good news, it just isn’t keeping up with the pent up demand of buyers.

Buffalo Grove Real Estate Single Family Homes New Listings

Homes Under Contract

The new listings over the past couple of months have satisfied some of the demand as 50 single family homes went under contract in Buffalo Grove. This is a decrease of 3 from 2015 or a decrease of 5.7%. This decline is a function of the lack of inventory we are experiencing.

Buffalo Grove Real Estate Single Family Homes Under Contract

Closings

An impressive 61 Single family homes closed in May, up from 36 in 2015, an increase of 69%!  Through the first five months of 2016, 165 single family homes closed this year versus 135 in last year.

Buffalo Grove Real Estate Single Family Homes Closed Sales

Condos and Townhomes:

Buffalo Grove Real Estate Average Market Time

The time Condos and Townhomes remains on the market in Buffalo Grove is 43 days which is down 47 days or 52% from May 2015. This is an extremely low figure and reflects the competiveness we are facing with Condos and Townhomes.

Buffalo Grove Real Estate Attached Homes Average Market Time

Months Supply

As of June 1, 2016, there is a ridiculously low 2.2 months supply of Condos and Townhomes for sale in Buffalo Grove compared to 2.0 last year. Buyers have to move quickly when an attractive listing hits the market!

Buffalo Grove Real Estate Attached Homes Months Supply

Buffalo Grove Homes For Sale

At the end of May 2016, there are 71 Condos and Townhomes for sale in Buffalo Grove, compare that to the 66 available at this time last year and you’ll see that inventory remains very tight. There simply aren’t enough homes to supply the current buyer demand, which provides for a very competitive environment.

Buffalo Grove Real Estate Attached Homes For Sale

New Listings

71 Condos and Townhomes were listed for sale in May of 2016, compared to 59 new listings last year. This influx of new inventory just might alleviate some of the pent up demand of buyers.

Buffalo Grove Real Estate Attached Homes New Listings

Condos and Townhomes Under Contract

49 Condos and Townhomes went under contract in Buffalo Grove in May, which is an increase of 5 from 2015.

Buffalo Grove Real Estate Attached Homes Under Contract

Buffalo Grove Real Estate Closings

47 Condos and Townhomes closed in May, up from 36 in 2015. Through the first five months, 150 Condos and Townhomes closed this year versus 136 2015. It appears that the main thing holding back sales is a simple lack of inventory.

Buffalo Grove Real Estate Attached Homes Closed Sales

Rates Have Mostly Decreased in 2015 so why has your DuPage Property Tax Bill Increased?

Its that time of year again, when residents get their DuPage Property tax bill for last year.  Surprisingly, the actual DuPage property tax rate has decreased across most of DuPage county.  However, home values have generally increased across many cities in DuPage county resulting in a counter-intuitive higher tax bill.  While your tax rate is lower, its highly likely that your assessed value has increased.  As a result of decreased foreclosure inventory over the past year or so, property values are stabilized or rising.

In prior years, I shared the formula for calculating DuPage Property Tax. In this article, in the last column, I am showing an example of what the tax bill would be in each city/township based on the 2015 tax rate and an assessed home market value of $250,000.

DuPage Property Tax Table

Town Township 2014 Rate 2015 Rate % change % of purchase price Annual Tax Bill on $250k home
Addison Addison 9.4087 9.348 -1% 3.12%  $     7,789.22
Addison Bloomingdale 9.4517 9.3779 -1% 3.13%  $     7,814.14
Aurora Naperville 9.9634 9.673 -3% 3.22%  $     8,060.03
Aurora Winfield 10.2205 9.9163 -3% 3.31%  $     8,262.76
Bartlett 10.1156 10.579 5% 3.53%  $     8,814.70
Bensenville 10.4134 10.329 -1% 3.44%  $     8,606.39
Bloomingdale 8.9496 8.6967 -3% 2.90%  $     7,246.53
Bolingbrook 10.1068 9.9532 -2% 3.32%  $     8,293.50
Burr Ridge 5.451 5.3599 -2% 1.79%  $     4,466.14
Carol Stream Wayne 10.4863 10.31 -2% 3.44%  $     8,590.97
Carol Stream 10.5257 10.335 -2% 3.44%  $     8,611.31
Clarendon Hills Bloomingdale 6.5565 6.3013 -4% 2.10%  $     5,250.56
Darien 7.411 7.3056 -1% 2.43%  $     6,087.39
Downers Grove Naperville 6.4461 6.2544 -3% 2.08%  $     5,211.48
Downers Grove York 6.4568 6.2628 -3% 2.09%  $     5,218.48
Downers Grove Downers Grove 6.4798 6.2886 -3% 2.10%  $     5,239.98
Elk Grove Village 9.9695 9.6641 -3% 3.22%  $     8,052.61
Elmhurst York 7.7063 7.0776 -8% 2.36%  $     5,897.41
Elmhurst Addison 7.7858 7.1566 -8% 2.39%  $     5,963.24
Glen Ellyn 8.722 8.4061 -4% 2.80%  $     7,004.38
Glendale Heights 13.2927 13.179 -1% 4.39%  $   10,981.74
Hanover Park 11.2932 11.967 6% 3.99%  $     9,971.67
Hinsdale Downers Grove 5.8095 5.6053 -4% 1.87%  $     4,670.62
Hinsdale York 5.8202 5.6137 -4% 1.87%  $     4,677.62
Itasca 8.6424 8.2259 -5% 2.74%  $     6,854.23
Lisle 8.4873 8.4155 -1% 2.80%  $     7,012.22
Lombard 9.2531 8.9837 -3% 2.99%  $     7,485.67
Naperville Naperville 7.3814 7.1563 -3% 2.39%  $     5,962.99
Naperville Lisle 7.4433 7.2085 -3% 2.40%  $     6,006.48
Oak Brook 3.9263 3.7945 -3% 1.26%  $     3,161.77
Oak Brook Terrace 6.8345 6.6229 -3% 2.21%  $     5,518.53
Roselle 8.5349 8.4476 -1% 2.82%  $     7,038.96
Villa Park Addison 8.2509 8.209 -1% 2.74%  $     6,840.15
Villa Park York 9.074 9.1095 0% 3.04%  $     7,590.49
Warrenville Naperville 8.008 7.867 -2% 2.62%  $     6,555.18
Warrenville Winfield 8.2512 8.0946 -2% 2.70%  $     6,744.83
Wayne 8.6239 9.0838 5% 3.03%  $     7,569.08
West Chicago Wayne 11.5918 11.504 -1% 3.83%  $     9,585.87
West Chicago Winfield 11.7269 11.637 -1% 3.88%  $     9,696.20
Westmont 7.603 7.3847 -3% 2.46%  $     6,153.30
Wheaton 8.1082 7.9701 -2% 2.66%  $     6,641.09
Willow Brook 5.2841 5.1916 -2% 1.73%  $     4,325.90
Winfield Milton 8.0102 7.8653 -2% 2.62%  $     6,553.76
Winfield Winfield 9.8873 9.6352 -3% 3.21%  $     8,028.53
Wood Dale 8.3248 8.2826 -1% 2.76%  $     6,901.48
Woodridge 10.0967 9.7946 -3% 3.26%  $     8,161.35

Buffalo Grove Real Estate Market Update April 2016

Buffalo Grove Real Estate Market Update April 2016

The Buffalo Grove real estate market remains healthy through the first four months of 2016, but inventory remains extremely tight with new listings down from last year. Positive indicators are that market times remain favorable and homes under contract and closings are above last year’s pace.

Single Family Homes:

Average Market Time

The time a single family home remains on the market in Buffalo Grove is 85 days which is up from 79 days in April 2015. Buffalo Grove had the lowest market time in the Chicagoland area in 2015, so we are at more average level so far in 2016.

Buffalo Grove Real Estate Single Family Home Average Market Time

Months Supply

As of May 1, 2016, there is a 3.0 months supply of single family homes for sale in Buffalo Grove compared to 3.9 last year. Anything under 5 months is considered a seller’s market.

Buffalo Grove Real Estate Single Family Home Months Supply

Buffalo GroveHomes For Sale

At the end of April 2016, there are 112 single family homes for sale in Buffalo Grove, compare that to the 130 available at this time last year and you’ll see that inventory remains very low. There aren’t enough homes to supply the current buyer demand, which provides for a very competitive environment.

Buffalo Grove Real Estate Detached Homes For Sale

New Listings

72 single family homes were listed for sale in April of 2016, compared to 102 new listings last year. While this new inventory is good news, it just isn’t keeping up with the pent up demand of buyers.

Buffalo Grove Real Estate Detached New Listings

Homes Under Contract

The new listings in March and April have satisfied some of the demand as 55 single family homes went under contract in Buffalo Grove. This is an increase of 8 from 2015 or an increase of 17%. Assuming that they close in May and June, it will be positive for the local market.

Buffalo Grove Real Estate Detached Under Contract

Closings

39 Single family homes sold in Buffalo Grove in April, up from 33 in 2015. Through the first four months of 2016, 104 single family homes closed this year versus 99 in last year.

Buffalo Grove Real Estate Detached Closed Sales

Condos and Townhomes:

Average Market Time

The time Condos and Townhomes remains on the market in Buffalo Grove is 48 days which is down 31 days or 39% from April 2015. This is a very low figure and reflects the competiveness we are facing with Condos and Townhomes.

Buffalo Grove Real Estate Attached Average Market Time

Months Supply

As of May 1, 2016, there is a ridiculously low 1.8 months supply of Condos and Townhomes for sale in Buffalo Grove compared to 2.1 last year. Buyers have to move quickly when an attractive listing hits the market!

Buffalo Grove Real Estate Attached Months Supply

Homes For Sale

At the end of April 2016, there are 58 Condos and Townhomes for sale in Buffalo Grove, compare that to the 60 available at this time last year and you’ll see that inventory remains very low and getting even tighter. There simply aren’t enough homes to supply the current buyer demand, which provides for a very competitive environment.

Buffalo Grove Real Estate Attached Homes For Sale

New Listings

60 Condos and Townhomes were listed for sale in Buffalo Grove in April of 2016, compared to 55 new listings last year. While it a nice addition to our inventory, it is not satisfying the pent up demand of buyers.

Buffalo Grove Real Estate Attached New Listings

Condos and Townhomes Under Contract

49 Condos and Townhomes went under contract in Buffalo Grove in April, which is an increase of 1 from 2015.

Buffalo Grove Real Estate Attached Under Contract

Bufflalo Grove Real Estate Closings

32 Condos and Townhomes closed in April, up from 30 in 2015. Through the first four months, 103 Condos and Townhomes closed this year versus 100 in Q1 2015. It appears that the main thing holding back sales is a simple lack of inventory.

Buffalo Grove Real Estate Attached Closed Sales

#BuffaloGroveRealEstate

Is Now A Good Time To Be Both A Home Buyer and Home Seller?

I have been contemplating a very interesting concept relative to the current conditons in residential Real Estate … can it be a good time to be a Home Buyer and a Home Seller at the same time? Some might say that a Home Buyer needs to get a great deal on a home in order for it to be a good time to buy.  The same thought process would suggest that a Seller would have to sell at or near a peak price in order to be a good time to sell.

In my opinion, the Real Estate bubble of 2008 has created a world where perceptions and realities can affect a potential Buyer or a Seller from taking the appropriate action that is right for them. For example, any of us homeowners who looked at Zillow or any home valuation tool in 2005 to early 2008 probably have an amount in our minds that seems unrealistic in 2016. Due to the bubble and the artificial price inflation we experienced, those values were meaningless, unless you were selling at the time … and if you were lucky enough to sell at that time, chances are you bought something else that was “overpriced.”

Then, there are the potential Buyers who are sitting on the sidelines with the belief that we are headed for another bubble as prices are projected to increase 5 to 6% this year. This quote by Lawrence Yun, Chief Economist for the National Association of Realtors sums it up well:

“Even though the credit conditions appear to be easing somewhat, the move is from overly stringent conditions to not-so-overly-stringent conditions. It is a far-fetched view to imply the current mortgage approval process in any way resembles the loosey-goosey, easy subprime mortgage access conditions of a decade ago.”

In other words, prices are increasing because demand is in excess of supply, not because of artificial factors as in the early to mid 2000’s.

So, to my argument that now is a time that is good to be a Home Buyer and a Home Seller, here are my key points:

Interest Rates are historically low and chances are they are not going to stay this low. Being able to secure an interest rate under 4% creates buying power for Buyers enabling them to purchase a more expensive home and/or buy any home, for that matter. Clearly a benefit to Home Buyers! Well, if you are selling your home, you certainly want to have as large a pool of buyers as possible. If interest rates increase to 5%+ in 2017 as Freddie Mac projects, buying power will decrease and that will affect both Home Buyers and Sellers!

Potential Sellers’ understanding of their home’s value and equity in their home need to be revisited. According to Corelogic, 91.5% of homeowners have positive equity in their homes and 72.6% have significant equity in their home. Significant equity is considered 20% or greater. This is a big deal! By understanding the value of your home and understanding your equity position can enable you to move on with your life … downsize, move to a warmer climate, move closer to your kids and grand kids, etc. So many people have delayed their move as they were “under water” on their mortgage. That brings me back to a point I made earlier, as I have heard people say that they are going to wait until the market continues to improve back to pre-bubble levels to increase their return on investment.   Who knows if that will happen AND do your really want to continue to delay the next chapter in your life?!

The reason this is so important is because we are experiencing such a shortage of inventory for sale.  For example in Buffalo Grove, there is only a 2 months supply of single family homes for sale. The only real downside for Home Buyers now is that all of the good listings are selling fast and their options are limited. NAR has reported that “foot traffic,” which measures showings is up significantly, indicating that demand is high. The biggest impediment to Home Buyers is simply a lack of inventory!

While I don’t want to be considered a “cheer leader,” I do believe that NOW is a good time to consider that next move and chapter in your life!

Buffalo Grove Real Estate Market – March Healthy

The Buffalo Grove real estate market is healthy through the first quarter of 2016 with some key indicators pointing to a breakout April and May. Inventory remains very tight, market times are up slightly, new listings and homes under contract are well above last year’s pace.

Single Family Homes

Average Market Time

The time a single family home remains on the market in Buffalo Grove is 109 days which is up from 80 days in March 2015. Buffalo Grove had the lowest market time in the Chicagoland area in 2015, so we are at more average level so far in 2016.

Buffalo Grove Real Estate Average Market Time

 

Months Supply

As of April 1, 2016, there is a 2.9 months supply of single family homes for sale in Buffalo Grove compared to 3.2 last year. Anything under 5 months is considered a seller’s market.

Buffalo Grove Real Estate Months Supply

 

Homes For Sale

At the end of the first quarter of 2016, there are 107 single family homes for sale in Buffalo Grove, compare that to the 102 available at this time last year and you’ll see that inventory remains very low. There aren’t enough homes to supply the current buyer demand, which provides for a very competitive environment.

Buffalo Grove Real Estate Homes For Sale

 

New Listings

81 single family homes were listed for sale in March of 2016, compared to 63 new listings last year. This influx of inventory is great news for the pent up demand of buyers.

Buffalo Grove Real Estate New Listings

 

Homes Under Contract

With the influx of new listings in March, some significant demand has been satisfied as 67 single family homes went under contract in Buffalo Grove. This is an increase of 26 from 2015 or a whopping increase of 63%. Assuming that they close in April and May, it will be a huge shot in the arm for the local market. As you can see from the chart below, this is by far the largest number of homes under contract in a single month in recent history.

Buffalo Grove Real Estate Under Contract Listings

Closings

29 Single family homes closed in March, down slightly from 31 in 2015. Through the first quarter, 65 single family homes closed this year versus 66 in Q1 2015. The new listings and new homes under contract bode well for the new quarter’s results.

Buffalo Grove Real Estate Closed Home Sales

Condos and Townhomes:

Average Market Time

The time Condos and Townhomes remains on the market in Buffalo Grove is 82 days which is up from 7o days in March 2015. This is a relatively low figure and reflects the competiveness we are facing with Condos and Townhomes.

Buffalo Grove Real Estate Attached Average Market Time

Months Supply

As of April 1, 2016, there is a ridiculously low 1.9 months supply of Condos and Townhomes for sale in Buffalo Grove compared to 2.1 last year. Buyers have to move quickly when an attractive listing hits the market!

Buffalo Grove Real Estate Attached Months Supply

Homes For Sale

At the end of the first quarter of 2016, there are 61 Condos and Townhomes for sale in Buffalo Grove, compare that to the 67 available at this time last year and you’ll see that inventory remains very low and getting even tighter. There simply aren’t enough homes to supply the current buyer demand, which provides for a very competitive environment.

Buffalo Grove Real Estate Attached Homes for Sale

New Listings

63 Condos and Townhomes were listed for sale in March of 2016, compared to 53 new listings last year. This influx of inventory is great news for the pent up demand of buyers.

Buffalo Grove Real Estate Attached New Listings

Condos and Townhomes Under Contract

With the influx of new listings in March, some of the pent up demand has been satisfied as 49 Condos and Townhomes went under contract in Buffalo Grove. This is an increase of 8 from 2015 or an increase of 19.5%.

Buffalo Grove Real Estate Attached Under Contract Listings

Closings

33 Condos and Townhomes closed in March, up from 27 in 2015. Through the first quarter, 71 Condos and Townhomes closed this year versus 70 in Q1 2015. The new listings and new homes under contract bode well for the new quarter’s results.

Buffalo Grove Real Estate Attached Closed Sales