We are finally seeing it – the end of effect of the homebuyer tax credit.  According to Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois, “The forecasts indicate that the housing market will reach its 2011 annual peak in July. Comparing the housing market in 2011 with 2010, the sales volume in the third quarter of 2011 is expected to surpass the third quarter of 2010 by 30 percent. This means the effect of the homebuyer tax credit will finally fade out in Illinois starting July 2011; some of the increase in the annual sales can be attributed to the significant decline that took place in 2010 when the effect of the withdrawal of the housing credit resulted in a sharp drop in housing sales for several months in a row.”  The above quotation is taken from last months housing report from the Illinois Association of Realtors and predicted an increase in activity for 2011. And, here are the numbers*…

*Source of above – MRED – Midwest Real Estate Data through July 2011.

As you can see,  Homes Sold increased by 21% to 115 units: Under Contract jumped to 110 units, an increase of 19.6%. Units Sold dropped by almost 8%. Inventory levels continue to come down, almost to a balanced market point (6 months inventory is considered a balanced market). That is the good news.

On the flip side, we are continuing to see downward pressure on pricing. Median Sold prices dropped 14.3% from the same period a year ago to $388,000. Meanwhile, Median For Sale prices remained about the same at $445,000. What this points to, in our opinion, is seller expectations of value are still higher than the market realities.

90-day stats for Single Family properties in NAPERVILLE, IL as of February 3, 2012
Median List Price:	$439,909	Average List Price:	$545,567
Total Inventory:	667	Price per Square Foot:	$159
Average Home Size:	3,085	Median Lot Size:	11,226
Average # Beds:	3.97	Average # Baths:	3.19
Homes Absorbed:	38	Newly Listed:	20
Days on Market:	246	Average Age:	24

The above statistics are for single family homes in Naperville, non-bank owned. The same information is 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.

National news in housing has been mixed lately, with home sales down over previous months but still higher than a year ago. The latest NAR report is available here. The numbers for Naperville single family homes continue steady on a month over month basis and stronger than a year ago. All statistics used in these reports come directly from Terradatum Inc. Their source is reported multiple listing service transactions.

Sold Homes: The average price for a single family home in Naperville sold for $423,729 in February 2010. That is an increase of 4.9% from the February 2009 average price of $404,026. Median prices were down at $315,080 vs $345,000. The gap between average and median price is typically around 12%. Last month it was 16%: this month it is almost 26%. That type of increase is only going to be caused by a wider range of prices above the median – an indicator that the upper levels of the Naperville housing market have started, and continue to move. Over the last two months the gap is widening.

The number of units sold is also up for February 2010 vs February 2009 at 52 vs 39 or a 33% increase. Homes under contract had a much sharper increase to 106 from 65 for the same period one year ago; an increase of 63%. (Both of these numbers are higher than January 2010 also!)

Months Supply of Inventory is a measure of how long, at the current rate of sales or absorption, would it take to sell out the market. The February MSI is 7.7, vs 14 a year ago – a decrease of over 46%. On a national level, the number is closer to 16 for this February and 24 months for last year at the same time – another indication that Naperville trends differ substantially from national numbers.

As always, if you want more detailed information or to look at the numbers on a more hyper-local level (zip code or subdivision) simply Order your free Market Report or drop me an email.

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.

Last 12 Weeks vs Previous 12 Weeks: (Source -Terradatum/MRED, LLC). Numbers shown are based on single family and townhome/condo data combined. Contact me for further individual breakdowns.

Homes Under Contract, 36 vs 40, up 8.5%. The trend continues, now in its seventh consecutive month here in Naperville. There are good values out there and buyers continue to advantage of them.

Median Price for Homes sold in Sept 09 is down 2.1% over the same period one year ago, and -5.7% over Sept 07.  At the same time, Average Price is -8.7% over Sept 08, but up 4.1% over Sept 07.

Reflecting a seasonal trend, the number of Homes for Sale is down 4.6% for the current 12 week period over the previous 12 weeks – a typical occurrence for this time of year. Homes Under Contract is down a similar level -4.4%.

Units Sold has flattened out this period which is typical from a seasonal perspective.. The current average of 40 vs 36 in the previous 12 week period is an increase of 8.5%. The continued change in this metric is a measure of strength in the market. And it is not just foreclosures that are selling!

Market Action Index has climbed to a point where it is exceeding last years level!  still indicative of a Buyers Market. (Neutrality is when the mark is around 30) but a 22% jump from the previous level. With several months of inventory available at the current sales rate, buyers should still find ample inventory. For sellers, properties need to be in the best possible condition to get the market’s attention at their price point.

Summary For the sixth month in a row the Naperville market continues to show signs of recovery. Homes are going under contract and closings are increasing. Inventories are up decreasing as more homes are absorbed and pending sales continue to be stable..

Note: If you would like to be updated regularly on housing statistics in your area, enter your info in the block to the right.

As Yu indicates the national market appears to be at or recovering from its bottom. For buyers, it means better chances for appreciation of your purchase. For sellers it is still unclear that higher prices are right around the corner. but from stability could come growth.
The housing market builds from the bottom up, but most indicators are positive, reflecting a trend we have seen in Naperville since early 2009.

The numbers are in for the end of June and are continuing to improve. Numbers released this morning show that nationally, pending sales in May increased for the fourth month in a row (source Inman News), with impetus coming from lower prices and the first time buyers credit. Our interest though is more local, and from that perspective the Naperville market momentum is continuing. Shown below are summary stats for all of Naperville. If you want zip code specific breakdowns they are also available.

Last 12 Weeks vs Previous 12 Weeks: (Source -Terradatum/MRED, LLC). Numbers shown are based on single family and townhome/condo data combined. Contact me for further individual breakdowns.

Homes Under Contract, 45 vs 26, up 70.7%. This is a trend that we have noted for the last four months and is indicative of a healthier market. There are good values out there and buyers are taking advantage of them.

Median Price , $314.7k vs $307k – an increase of 11.6%. This metric started climbing in late April, and is usually related to increased demand in the marketplace.

Average Units for Sale of 1,645 vs 1,473 or an increase of 11.6%. The recent trend had been steadily climbing since early February until a flattening in April. This number has leveled out since early April – lower indicating a consistent level of available units.

Units Sold has continued to climb on a weekly basis. The current average of 32 vs 18 in the previous 12 week period is an increase of 72.1%, possibly indicative of renewed confidence in the market.

Market Action Index is still around the 9 mark which is indicative of a Buyers Market. (Neutrality is when the mark is around 30). With several months of inventory available at the current sales rate, buyers should still find ample inventory. For sellers, properties need to be in the best possible condition to get the market’s attention at their price point.

Summary Again, for the fourth month in a row the Naperville market continues to show signs of recovery. Homes are going under contract and closings are increasing. Inventories are up slightly as are pending sales.

Note: If you would like to be updated regularly on housing statistics in your area, just drop me an email and the data will be sent to you automatically.

Last 12 Weeks vs Previous 12 Weeks: (Source -Terradatum/MRED, LLC). Numbers shown are based on single family and townhome/condo data combined. Contact me for further individual breakdowns.

Homes Under Contract, 40 vs 22, up 84.5%. This is a trend that we have noted for the last three months and is indicative of a market regaining its health. There are good values out there and it seems buyers are taking advantage of them.

Median Price , $305k vs $299.9k -an increase of 1.9%. While volume in May is up vs April. This is the first monthly uptick in a while that we have seen in this number. One of the reasons may be the slight decrease in homes available as shown below.

Average Units for Sale of 1,608 vs 1,429 or an increase of 12.1%. The recent trend had been steadily climbing since early February with a flattening in April. This number has moved slightly downward since mid-April – lower inventories could be the cause of the slight upturn in prices we have seen.

Units Sold has continued to climb on a weekly basis. The current average of 28 vs 16 in the previous 12 week period is an increase of 69.2%, possibly indicative of renewed confidence in the market.

Market Action Index is still hovering around the 10 mark (with a slight upturn) which is indicative of a Buyers Market. (Neutrality is when the mark is around 30).

Summary Again, for the third month in a row the Naperville market continues to show signs of recovery. Homes are going under contract and closings are increasing. Inventories are stabilized to slightly down.

Note: If you would like to be updated regularly on housing statistics in your area, just drop me an email and the data will be sent to you automatically.

As a rule, sales volume in Naperville is still running behind 2008. Homes Under Contract, a good measure of how active the market is – 70 vs 80 – are down 12.5% from a year ago. Home Sold, – 34 vs 71 – are down 52%. Homes On Market – 1,056 vs 1,110 – are down 4.5 %. An interesting trend is that for the past six months, the number of homes going under contract has been fairly consistent (December was an anomaly in the trend) which bodes well for a stabilization of demand in Naperville. Third quarter 2008 saw a sharp decline in this key measure.

Months Supply of Inventory (# of homes on market/average homes sold per month) is continuing to come down from the record highs of 3^rd quarter 2008 and is currently just under 13 months.

What does this mean for Buyers? You have choices out there in the market and homes are becoming more affordable as the market continues to settle. There are some very attractive buys out there right now.

For Sellers, competition in attracting buyers continues to be strong. Properties that are well prepared for market, i.e., clean, fixed up, updated, will continue to sell more quickly and for a higher percentage to list price. The cream will come off the top.