Naperville Condo & Townhome Market Report – January 2012

In our post last December, we reported on mixed results for the condo and townhome market in Naperville. After looking at the January 2012 numbers, there is cause for optimism, provided the trend continues. Let’s take a quick look at the numbers* versus January 2011:

• Bank owned properties as a % of all sold is at 27%, down from 52%
• Months Supply of inventory (MSI) – Bank Owned at 5.2 months vs 18.5 months
• Months Supply of inventory (MSI)  - Traditional at 7.2 months vs 29.9 months
• Months Supply of inventory (MSI)   – Overall at 6.6 months vs 18.5 months

Remember, in balanced market (one that favors neither buyers or sellers) there is about 6 months of inventory.

• Units Sold Bank Owned – down 4%, Under Contract – flat
• Units Sold Traditional – up 50%, Under Contract – up 200%
• Units Sold Overall – up 23.5%, Under Contract – up 95.7%

Finally, how about pricing? For this metric we are looking at those properties that are Under Contract as they normally reflect the most recent purchases. Prices are based on the Median.

• Bank Owned – up 36.2%
• Traditional – up 7.6%
• Overall – up 27.9%

In summary, Inventories in this market segment are at what is traditionally viewed as a balance point, Units Sold and Under Contract are up significantly over a year ago, and Median Prices are up. And, as a final measure, the percentage of Bank Owned properties is down significantly.

*Numbers are taken from Terradatum and are based on closed MLS statistics.

The table below shows key measures as of January 27, 2012.

The above statistics are for attached properties in Naperville. The numbers and trends can and do vary for different areas in the same town (zip code). The same information is also available for Lisle, Aurora, Plainfield and Oswego.  Give us a call at 630-718-2305 or drop us an email with your request. Additionally, you may have reports emailed directly to you for the zip code area you want to explore.

Naperville Attached Homes Market Analysis

Trends in Attached Housing in 2011

I suppose the analogy of how you look at a 1/2 glass of water is appropriate when one looks at the Attached Home (Condos & Townhomes) in Naperville in 2011: Is your glass half full or half empty? Here is our review of the numbers and perspective how we interpret them.

Months Supply of Inventory – (the measure of how long it would take the market to absorb all properties on the market at the current sales rate). This metric has shown steady improvement this year. January it was at 18.9 months – November saw it down to 11.9 months,  a 36% decrease. The trend is  similar for both bank owned and non-bank owned properties. Bank owned are at 7.1 months and non-bank 14.6. In a balanced market, favoring neither buyer or seller, we look for around 6 months inventory.

Sold Properties – Closely tied to MSI above, is Sold Properties. While the number of non-bank owned properties sold each month has increased by 75% from the start of the year, bank owned numbers have remained relatively flat at around 5/month.

Median Sold Price – Bank owned properties have seen a rise in median sale price over the  past 11 months: From $115k to almost $144k. This is positive considering the volume of properties available. On the other hand, non-bank owned have dropped about 10% in median sale price – $182.5k to $163.5k. Overall, median price has risen 6.2% to $154,000.

Median List Price- This measurement has remained flat for both bank owned and non-bank owned units. Median List for bank owned has remained at around $120k while non-bank owned has increased 3% to $175,000. As you can see, comparing to the numbers in theparagraph above, expectations of sale price and realities of sold price are quite different.

The above statistics are for attached properties in Naperville. The numbers and trends can and do vary for different areas in the same town (zip code). The same information is also available for Lisle, Aurora,Plainfield and Oswego.  Give us a call at 630-718-2305 or drop us an email with your request. Additionally, you may have reports emailed directly to you for the zip code area you want to explore.

Aurora IL Real Estate Market Conditions condos & townhomes zip 60503

Median Price for homes in AURORA, IL 60503 as of September 23, 2011 is $145,000	Total Inventory for homes in AURORA, IL 60503 as of September 23, 2011 is 93
Average Days on Market for homes in AURORA, IL 60503 as of September 23, 2011 is 207	Median MAI for homes in AURORA, IL 60503 as of September 23, 2011 is 12.49

Aurora, IL Real Estate Market Conditions: Condos and Townhomes, zip 60504

Median Price for homes in AURORA, IL 60504 as of December 10, 2010 is $129,650	Inventory for homes in AURORA, IL 60504 as of December 10, 2010 is 148
Average Days on Market for homes in AURORA, IL 60504 as of December 10, 2010 is 185	Median MAI for homes in AURORA, IL 60504 as of December 10, 2010 is 33.26

Aurora, IL Real Estate Market Conditions: Condos and Townhomes, zip 60502

Median Price for homes in AURORA, IL 60502 as of January 7, 2011 is $175,000	Inventory for homes in AURORA, IL 60502 as of January 7, 2011 is 95
Average Days on Market for homes in AURORA, IL 60502 as of January 7, 2011 is 225	Median MAI for homes in AURORA, IL 60502 as of January 7, 2011 is 13.01

Naperville Condos & Townhomes show interesting 09 numbers

Earlier this month we looked at how single family homes did in Naperville in the past year (2009) over the previous (2008) year. And the numbers seemed to bode well for a stronger 2010. In looking at the Condo & Townhome markets for the same time period we see some interesting trends.

Sold Average:  In the year ended 12/31/2008, the average price of a condo/townhome in Naperville dropped 2.5% over the previous 12 months while the median price rose 11.6%. Moving forward, at the end of 2009, the average sale price dropped 8% over its 2008 close while median price dropped 8.2%. Overall, over the two year period, average prices declined 10.3%; median rose 2.4%.

What is interesting about these numbers is that if you look at a month by move trend analysis it shows that average sales prices are recovering in same month comparisons to previous year. As an example, December 09 was up 6.5% over December 08.

Supply and Demand: Units sold and or under contract is a measure of how active the market is. And 2009 a small decrease in units sold over 2008, but still down sharply from the levels seen in 2007. Meanwhile, units for sale, (not shown in the table) show a 6% increase from  end of year 07 (498) to end of year 09 (528). this number spiked in December 08 at 564 units for sale.

So What:  Bottom line question is what does this mean for the Naperville housing market? In reverse order, given the number of units available for sale vs the number actually selling, buyers will continue to have a lot of choice. Sellers, in order to be competitive, need to have the home in the most attractive shape possible and at the best possible market price. Given the scope of choice available, you need to be the best value in your price range. The market will not come to meet the price you feel you should get for your property. You need to be priced to the market.

Related articles by Zemanta

• House Prices Off To Strong Start In 2010 (news.sky.com)
• New-Home Sales Decline (benzinga.com)

Naperville Condo and Townhome Market Report

New this month – Market Stats Report on Condos and Townhomes in Naperville. This will be following the same format as the monthly single family homes report but will focus on this segment of the market. Industry news in recent weeks has included the expansion and extension of the Home Buyer’s Tax Credit. Essentially, the program for first time buyers requires a contract date no later than April 30, 2010 and a close date no later than June 30, 2010. The amount is 10% or a maximum of $8,000. Income limits have been adjusted upward so more people may be eligible. Existing homeowners (not just upgraders) who have owned and lived in their home for five consecutive of the last eight years may be eligible for up to $6,500. This chart has a good summarization of the changes. And for a Frequently Asked Questions or FAQ, go here.

Data comparisons* are made for the current 12 week period vs the previous 12 weeks.

Homes Under Contract, 12 vs 12. We have seen a bit of a slowdown in homes going under contract. This is typical of the seasonal nature of real estate. This is the first down month after 7 consecutive months on the uptick. Homes Sold went from 12 to 10 or a decrease of 16.7%. Again, this is not unusual give the time of year.

Continuing the trend started last month, Homes For Sale decreased 3.6% from 552 to 532. With fewer homes on the market, we should begin to see some stabilization in pricing.

Median Price for Homes Sold in October 09 is down 1.2% from $197,519to $195,071– an insignificant change. The median for Homes Under Contract however, dropped from $204,705 to $181,352– a decrease of 11.4%. Median List Price remained flat: $189,975 vs $189,288.

Condos and Townhomes in Naperville, IL

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*(Source -Terradatum/MRED, LLC). Numbers shown are based condo/townhome data. Contact me for further individual breakdowns. Other data  and charts from Altos Research. Information is also available by zipcode. It can be requested in the chart to the right or by clicking here. It will be emailed to you shortly.

Aurora – Local market trends

Just how “hyper-local” is the Aurora* real estate market?  As I have been watching the statistics over the past several months it has become apparent that it is very local. Many of you receive my free monthly reports from Altos Research that show the trends in your particular zip code. And some numbers are up and some are down. What is interesting is how they vary by zip code in Aurora. The chart below reflects the trend in Median Price, by zip, over the past 12 months for single family homes:

As you can see, over the past 12 months, Median Prices have been relatively flat with a slight decline – an improvement over the previous 12 months that saw sharper declines. If you are interested in seeing how this drills down to the subdivision level, drop me an email or give me a call and let me know what area you want to view.  And as always, you can request your free reports here.

Condos and town homes in these zip codes show a sharper downward trend, down in the range of 8-11% over the same time period:

If you are interested in seeing how this drills down to the developement or association level, drop me an email or give me a call and let me know what area you want to view.  And as always, you can request your free reports here.