Lake Zurich-area home sales up 47.2%; sellers in command in lower price range

Strong momentum continued in July for Lake Zurich-area real estate as closed home sales rose sharply, market time plummeted and sold properties continued to outpace new market activity.

MARKET SNAPSHOT

>  Median sales price was flat year over year though trends are strong

> The number of closed sales rose 47.2% continuing the record pace this year

> The below $309.900 price range reflects a strong seller’s market

> The middle and upper end price ranges continue to favor buyers

> The measures of Market Time and Percent of Original List Price improved significantly, reflecting the strong pace of activity

Here is the story behind the headlines:

MEDIAN SALE PRICE: The median sales price for homes in the Lake Zurich area remained even to the previous July at $404,000. However, when we examine the rolling 12-month average the upward price trend is now evident.

CLOSED SALES: For the 10th month in a row, closed sales are hitting record territory. The number of closed sales during the month rose 47.2% year over year to 78 from 53 the prior July. This reflects a 5-year high of activity; sales are strong in Lake Zurich, Hawthorn Woods, Kildeer and Long Grove.

MARKET TIME: Market time – the number of days from listing to contract date — has fallen dramatically to 138 days. This is a 33.3% decline from the previous July when market time stood at 206 days. One notable price point has seen a dramatic reduction: homes listed between $309,900 and $ 479,899 are selling in just 84 days.

PERCENT ORIGINAL LIST PRICE: As market time decreased, Percent of Original List Price increased 4% from last month. In July sellers were capturing 93.8% of their original list price, up from 90.2% just one year ago. This measure ranges from 90 to 95% within the various price ranges.

Both these measures reflect sellers who are more realistic about the value of their property and buyers who are coping with a shrinking inventory.

UNDER CONTRACT:  Properties under contract continued the positive momentum in Lake Zurich-area real estate as 76 homes went under contract during the month, up 58.3% from 48 one year ago. The price range below $309,900 was especially strong.

INVENTORY: Inventory for the total Lake Zurich-area real estate market stands at 5.4 month’s supply, the fifth straight month of declines. As we’ve reported previously here is the standard definition of a buyer’s vs. a seller’s market: buyers are favored at 7+ months and homes continue to see downward pressure on pricing. At 5-6 months the market is “balanced” where both buyers and sellers have equal strength. 

Inventory at 4 months or less favors the home seller, as buyers scramble to purchase the few properties that are on the market. In this scenario home prices usually appreciate.

Katie Howard is Marketing Director at Prudential Visions Realty, Barrington, blog@besthomebrokers.com, www.besthomebrokers.com