What Chicagoland real estate inventory means for you

I thought I would give a little market update today since that is always the first question I am asked by clients, and for good reasons: the market is evolving at record speed. The word of the day today is inventory, or basically how many homes are on the market in a given area. This is an important metric to consider because it is the basis for supply and demand when it comes to real estate. High inventory creates a buyer’s market because of the larger supply. Low inventory creates a seller’s market for the same reason.  

Where is inventory in Chicago right now?
The short answer is all over the place. It truly depends on what type of inventory you are referring to. The good news is that inventory for detached housing, or single family homes is relatively low. Many Chicagoans who perhaps thought about moving are now staying put and waiting. Lakeview saw 40 new detached listings in September, Lincoln Park had 70 and the Near North Side (downtown and Old Town), had only 16.

With good news, there is always some bad news, right? The less great news here is that inventory of attached properties, or condos, is high. And it’s actually high throughout the city, even though some believe that is only true downtown. In Lakeview there were 600 new listings in September, which is part of an overall trend of steeply increasing inventory since April. In Lincoln Park there were 400, and attached inventory there too has been increasing since the spring. And lastly on the Near North Side there were 900 new listings, with the same upward trajectory since the spring. 

 Where is inventory in the suburbs right now?
LOW, across the board. The Chicagoland suburbs are having a huge moment right now, and demand is off the charts. Approximately 50% of single family home sales in the suburbs are multiple offer situations at this point. As a result, pricing is all over the place, so it is as important as ever for people moving from the city to the suburbs to work with a real estate broker who understands market value in a given area.  

What does this mean for buyers and sellers? 
City condo sellers: This is a game of making your home shine amongst the competition. This means a combination of the perfect price right out of the gate (i.e. don’t start high and whittle down later, there isn’t room for that in this market!), and make sure your home is absolutely move-in ready. All the small projects are taken care of, so buyers can see themselves moving in and immediately relaxing. 

City condo buyers: You need to be aware of market value. Many buyers are assuming that there is tons of wiggle room in every negotiation, and this just isn’t true. Many sellers are listing at market value, leaving less room for back and forth. Know the comps, and know what is fair market value to be a competitive buyer. 

City SFH sellers: You are more in the driver seat than those selling condos, but know that there is also less demand than there was in a pre-COVID world. Buyers of single family homes are still expecting move-in ready, so your home should look and feel ready to go. It is crucial to price the home well right out of the gate, and don’t be alarmed if a low offer comes in. We still recommend countering the low offers since there are times buyers will make a jump in price–which we won’t know if we don’t counter. 

City SFH buyers: Increased competition means you need to be ready. You should have pre-approval in hand, and be ready to make an offer on the home you love. And assume there will be other interested parties. 

Suburban SFH sellers: We are so happy that the uptick in the suburban markets is finally here! Suburban sellers should still make sure that their home looks its very best in photos and showings to secure top dollar. And because there are so many multiple offer situations, you want to work with a broker who has experience handling competitive deals. 

Suburban SFH buyers: Get ready for a competitive field. If a house is priced properly and sells well, chances are it will end up in a multiple offer situation. When this happens, it is all about strategy. At Busby Group we are helping our suburban buyers navigate these situations on a daily basis, ensuring they not only “win,” but also do not overpay. Working with an experienced broker, plus one that knows about properties before they hit the market (hi!), is the key to success. 

All of this advice underlines the point that there is a real comprehensive strategy to buying and selling real estate in Chicagoland right now. The market is in a constant state of flux, so it is crucial to stay on top of the market on a daily basis–or work with a real estate broker who is!