Do buyers have more buying power this year? Should sellers be quicker to put their houses on the market before the spring rush? These are important questions everyone asks themselves before entering the real estate market. But nothing has both buyers and sellers talking more than the new tax bill and the effects it will have on 2018’s market trends. Before we break them down, let’s review how the trends from 2017 will carry over into this year in our markets.
2017 was a phenomenal year for real estate. Demand was so high, we saw only 3.4 months of available housing inventory, making buyers feel far more pressed to buy a new home. This means that Spring 2018 is set to be robust with strong demand and optimistic builders. What does that mean for our neck of the woods in the Palatine, Inverness, and Barrington markets Compared to last year’s market, here is what to expect:
In 2017, for single family homes priced from $200,000 to $449,999, we saw an average sales price of $326,723; 119 average days on market; and coming in with a $162 per square foot average.
From my personal observations, I predict a continuation of what we’ve seen over the last four years in Barrington. Downtown areas will continue to be sought after. Lake and Port Barrington are a great place to get the maximum value for your money. South and North Barrington and Barrington Hills will be slower to move, but continue to sell in the market when priced strategically and compellingly—to draw even the choosiest and most detailed of buyers. The higher priced buyers move slowly in their selection, methodically weighing every fact in a home and its return investment value for the long-term picture. The moderately priced buyers (including first timers or downsizers) are in the buyer’s pool that is moving faster to keep up with inventory being scarce. In a sense, they are part of the driving force in maintaining the market movement.
In 2017, for single family homes from $200,000 to $449,000, we saw an average sales price of $371,164; 121 average days on market; and coming in with a $150 per square foot. For single family homes from $450,000 or more, we saw with an average sales price of $670,621; 218 average days on market; and coming in with a $177 per square foot average.
My predictions for the Inverness area are a market moving in a relatively steady pace. Again, we see the higher priced homes with a longer wait time to get under contract, but that can be attributed to buyers’ methods in that price range. That’s why it’s crucial to price your home exactly at a compelling price—not just a comparable one. Be the home that stands out among the rest with a listing price truly reflecting the attributes of the home and not what you hope to get from past markets of 10 and 20 years ago. Be the home that is truly move-in ready by buyer’s standards. One of the many additional services I always offer my clients is home staging—don’t underestimate the huge impact this can ultimately have in securing a signed contract. This presents the home in its best light and can maximize the appearance of space and value.
In 2017, for single family homes from $200,000 to $449,999, we saw an average sales price of $297,342; 86 days on market, and coming in with a $172 per square foot average. For single family homes priced from $450,000 or more, we saw an average sales price of $554,876, 154 days on market, and coming in with a $176 per square foot average.
My personal observations and predictions for the Palatine market are very encouraging. Homes priced under $450,000 have been quick to move over the last four years and will continue to do so. Homes at over $450,000 have a slightly longer wait time to get under contract, but it is happening.
The bottom line is we need more inventory on the market to fulfill the projected volume of buyers for the year.
There are many reasons the market continues to stay strong. A new influx of millennial buyers want to live the American dream of home ownership. In addition to investing for future revenue, the tax bill is affecting them and they want to take advantage of it. Meanwhile, mortgage interest rates are moving up with quarterly predictions, making it ideal to buy this spring.
To take advantage of this strength, it is paramount that buyers and sellers have not just “great” agents representing them, but brokers who consistently give better than the best. It is for this reason that I strive to go above and beyond in service, insight, negotiating, and communication skills—offering customized market planning for each individual seller, buyer, and the home itself. We use every available marketing method to advertise and that includes social media, which has proven key to spotlighting and highlighting homes for today’s more digital-savvy buyers. Every home has a buyer and every buyer wants a home. Let me be your matchmaker this Spring 2018.
Maria Devins is a broker and real estate agent with Baird & Warner in Palatine. Call 847-840-2520 or email [email protected].