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June 2013 Barrington Market Report
June 2013 Barrington Market Report
June 2013 Barrington Market Report
June 2013 Barrington Market Report
June 2013 Barrington Market Report
June 2013 Barrington Market Report
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June 2013 Barrington Market Report

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Barrington, Illinois-area Real Estate continues strong showing; sales price up 8.3%

Barrington, Illinois-area Real Estate continues strong showing; sales price up 8.3%

Published in: Real Estate, Business
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  • 1. Prudential Visions Realty Helping Home Owners & Home Buyers Become Savvy Consumers Prudential Visions Realty | Michael Kurowski| 847.806.8385 | 303 East Main Barrington Helping home owners and home buyers become savvy consumers June 2013 Barrington-area real estate continues strong showing; sales price up 8.3% Another strong showing for Barrington-area real estate during June 2013 as sales pricing rose, distressed properties fell and homes went under contract at a record pace. MARKET SNAPSHOT  Median sales price rose 8.3% year over year  The number of closed sales rose 47.6% to a five-year high  More distressed homes went under contract or closed during June than the number of new distressed listings  Certain price ranges are now solidly in the category of a seller’s market  The measures of Market Time and Percent of Original List Price rose significantly, signaling the strong pace of activity Here is the story behind the headlines: MEDIAN SALE PRICE: The median sales price for homes in the Barrington area rose 8.3% year over year to $397,500 from $367,000. However, the 12-month rolling average has not yet revealed strong trends; this indicates that the positive movement under way is at its early stages. The price gains are especially strong in the price range of $345,000 to $549,000. While home sale price rose 8.3% in June, continuing this spring’s positive momentum, the trend is still early. MEDIAN SOLD PRICE IN BARRINGTON
  • 2. Prudential Visions Realty Helping Home Owners & Home Buyers Become Savvy Consumers Prudential Visions Realty | Michael Kurowski| 847.806.8385 | 303 East Main Barrington Helping home owners and home buyers become savvy consumers CLOSED SALES: The number of closed sales during the month rose a whopping 47.6% year over year to 94 for the month of June. This reflects a 5-year high of activity and 6 consecutive months of increases. Sales one year ago were 63 compared to last month’s mark of 93 (21 attached and 72 detached homes). Here are the highlights for single family Barrington-area homes closed in June:  Median list price $400,000  Median sale price $395,000 MARKET TIME: Market time – the number of days from listing to closed date — has fallen dramatically to 159 days. This is a 31% decline from 231 days in June 2012. As market time decreased, Percent of Original List Price increased to 94% in the month. This is a large jump from the 91.7% rate just one month ago and up from 87.3% a year ago. Both these measures – Market Time and Percent Original List Price -- reflect the reality of shrinking inventory combined with growing pent-up demand of buyers who put their plans on hold during the recession. To prove that point we examined the real estate properties listed for sale during the month of June. An amazing 23 homes went under contract that same month, with an average list price of $539,900 and, on average, 7 days from listing to under contract. While this pace is a bit stressful for buyers it is a welcome sign for sellers. The last 12 months show positive momentum in Barrington as closed sales continue strong full-year gains. CLOSED SALES IN BARRINGTON
  • 3. Prudential Visions Realty Helping Home Owners & Home Buyers Become Savvy Consumers Prudential Visions Realty | Michael Kurowski| 847.806.8385 | 303 East Main Barrington Helping home owners and home buyers become savvy consumers   UNDER CONTRACT: Properties under contract continued the positive momentum in Barrington real estate as 88 homes went under contract during the month, up 76% from just 50 one year ago. Both “Closed Sales” and “Under Contract” showed strength in all price ranges, property types (attached, detached) and sales types (traditional, distressed) with one notable exception. Short sales fell significantly during the month of June. Both sellers and buyers have become more realistic during the past year and properties are now selling for close to list price. BARRINGTON % ORIGINAL LIST PRICE MARKET TIME IN BARRINGTON Homes are moving from list to close more quickly, especially in the mid-range price bracket.
  • 4. Prudential Visions Realty Helping Home Owners & Home Buyers Become Savvy Consumers Prudential Visions Realty | Michael Kurowski| 847.806.8385 | 303 East Main Barrington Helping home owners and home buyers become savvy consumers  HOMES FOR SALE: The number of homes for sale continued to fall compared to one year ago. While new listings were up 13% to 138 this is a decrease from the rate in May. This trend was evident in all price ranges, property and sales types.  INVENTORY: Inventory for the total Barrington-area real estate market stands at 7.4 month’s supply. But this figure can be misleading. Attached homes in the $345,000 to $548,849 price range stands at a mere 2.6 months and there is only a 4-month’s supply of detached homes listed less than $549,849. Inventory is the measure based on the actual sales rate compared to the number of properties available for sale. BARRINGTON HOMES FOR SALE: ANNUAL TREND The decline in the number of homes for sale is evident in all price ranges.
  • 5. Prudential Visions Realty Helping Home Owners & Home Buyers Become Savvy Consumers Prudential Visions Realty | Michael Kurowski| 847.806.8385 | 303 East Main Barrington Helping home owners and home buyers become savvy consumers THE BOTTOM LINE IN BARRINGTON REAL ESTATE So you’ve studied the facts and understand the local market. What’s the bottom line?  The number of available homes for sale continues to be depleted, especially among distressed properties.  Pricing is starting to rise in traditional sales of detached homes. The percent of list price that buyers are willing to pay has steadily increased.  The number of closed sales and properties under contract waiting to close was especially strong in June; there is no indication of a slowdown.  New properties that come on the market are often under contract that same month.  Home sellers are experiencing bidding wars for properly priced homes. The average days it takes to sell a property has dropped and sellers are receiving closer to (if not greater than) their list price. RECOMMENDATIONS For buyers, here are my recommendations:  NO TIME LIKE THE PRESENT: If you’ve been waiting for the absolute bottom of the home price declines, you’ve probably missed it. Experts expect pricing increases of an additional 3.5% for each of the next five years.  FINANCING IN ORDER: The 30-year mortgage rate is at the highest level in over a year, rising significantly in the last month. The Mortgage Bankers Association, Fannie Mae and the National Association of Realtors all predict that rates will continue to rise over the next 18 months. Be sure you are pre-qualified for your financing  STRATEGY: Map out your strategy with your REALTOR®. Besides sales price, negotiations often center on other terms such as occupancy date, inspections and the strength of buyer financing.  BE DECISIVE: Multiple offer situations are becoming commonplace when new listings appear. Be prepared to move quickly; others will.
  • 6. Prudential Visions Realty Helping Home Owners & Home Buyers Become Savvy Consumers Prudential Visions Realty | Michael Kurowski| 847.806.8385 | 303 East Main Barrington Helping home owners and home buyers become savvy consumers For sellers I suggest the following:  WHAT ARE YOU WAITING FOR? Inventory is at historic lows, financing rates are excellent and buyers are motivated. It’s wise to list your home when your competition is sparse.  NEGATIVE TO POSITIVE EQUITY: Home owners, who wish to sell, but found themselves in negative equity situations (where the house is worth less than the remaining mortgage) in the last few years, may see a turnaround. These home owners may be freed to sell as prices continue to rise and distressed properties fade from an appraiser’s “comparable property” list. Be sure you are working with a professional who is watching market conditions and can advise you on the best time to make your move.  BE REALISTIC: The real estate market has changed. Accept it. Your property is no exception. It doesn’t matter what you paid; value is in the eyes of the buyer.  BE SAVVY: Yes, final sale price is important but be sure to discuss with your agent other terms that are vital to you. Close date, occupancy date, inspection, warranties all enter into the final equation. Questions about your next move in the housing market? Contact me to help plan out your strategy. I would love to help you become a savvy consumer.

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