It has been widely reported that the Chicago south real estate market is experiencing a seller’s market due to the scarcity of supply. Many sellers are seeing multiple offers and limited days on market.
Traditional listings as a percentage of total homes listed on the market are up in some communities in the Chicago south real estate market. However, it does not appear to be due to an increase in the number of traditional listings. Rather, there appears to be a decline in several communities of the number of foreclosures. Wells Fargo and Citibank have halted most of their foreclosure sales due to increased scrutiny by the Office of the Comptroller of the Currency (OCC). JP Morgan Chase had also halted temporarily halted foreclosures but has resumed them after validating that its processes comply with the OCC guidance. The OCC is also stating that other banks have drastically cut back on foreclosure sales. This may be good news for sellers deciding whether to put their home on the market in the Chicago and south/southwest suburban market. Buyer demand is definitely up this season.
As seen in the chart below, total homes available are significantly down compared to the same period in 2012 in most communities. There is a marked decline overall in both short sales and foreclosures.
If you are just starting your home search, you can expect competing offers on many of the homes for sale. It is just part of the landscape. As a buyer, know what you want, be ready to make a decision and determine up front what your maximum amount you are willing to offer. Also, remember — multiple offer status says nothing about the quality of the other offers on the table. It just means that there is more than one offer. That being said, this is probably not the market for a low ball opportunity. If you can’t afford the home, it may not be the right one for you. As a seller, the home still has to be priced right. No one is going to over pay (and there is still an appraisal) so this is probably still not the opportunity to get back what you paid for your home during the “bubble”.
If you are looking to buy or sell your home in the Chicago and south/southwest suburbs, please give me a call. Also, if you are struggling with your mortgage or just upside down, I am a certified short sale specialist.
Millie C Lumpkin, CDPE, SFR
Keller Williams Preferred Realty
Cell: (312) 217-5644