Posted Apr 5, 2021, 8:13 PM
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Registered User
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Join Date: Dec 2012
Location: Chicago
Posts: 6,883
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Quote:
Originally Posted by marothisu
First quarter is in the books. I have been keeping track all year of properties in the city proper whose sale price was above the initial list price. Generally if a property was listed sometime and a month later it is listed again, the previous one would be the one I consider. If there's no activity for 6-8+ months then I will take the newer one. There's some nuance but in general interesting to me.
In total for the first 3 months of the year, I found 603 properties (SFH, Condo/Townhome, multi unit building....and some properties) in the city proper whose sale price was greater than the list price from January - March 2021. Furthermore, there were at least 246 more properties that sold at the same as their list price.
Map:
https://www.google.com/maps/d/u/0/ed...4P&usp=sharing
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This article goes a little hand in hand with my post here ^ from the other day:
A tight housing market is getting even tighter
https://www.chicagobusiness.com/resi...g-even-tighter
Quote:
The low mortgage rates and pandemic-era changes in housing needs that have propelled a surge in home sales is about to deliver an even bigger wave.
In March, Chicago-area homebuyers put 18,758 homes under contract, according to Midwest Real Estate Data. That's by far the highest figure in any month in MRED's records, which date to January 2008.
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In the years before the pandemic and low interest rates juiced up the market, the most homes put under contract in a single month was 12,969, in April 2016, and in the current market conditions, the most contracts in a month was 14,252, in June. That is, March contracts were 44 percent above the strongest month in normal years and 32 percent above the strongest month in the heightened pandemic year.
A wave of contracts, most of which eventually turn into closed sales, can lift the local economy, as people who buy homes subsequently spend money on movers and new furniture and drapes, plus other costs of settling into a new address. But this wave may also bring in bad news for the next buyers to enter the market: higher prices.
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What's not growing as fast as contracts is new inventory on the market. Thus inventory, which for months has been so tight that it has sparked bidding wars, rising prices and buyer frustration, may get even tighter. That, in turn, could push prices higher and buyers' nerves closer to the edge.
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"Obviously there's a bottleneck," says Anne Rossley, a Baird & Warner agent who focuses on North Side neighborhoods. "March is really the beginning of the real estate season, and we're seeing no signs of inventory loosening up."
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The cost of borrowing, which slid ever lower in 2020, ticked upward in March. The cost of a 30-year mortgage is still only slightly above 3 percent, but the fear of missing out on all-time highs in housing affordability may have contributed to buyers putting so many houses under contract in March.
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The incoming flood of home sales shouldn't jam the pipeline, say representatives of Chicago mortgage and title firms. They've been staffing up, in response to both a surge in home mortgage refinancing to take advantage of low interest rates and recent months' big increases in the number of home sales.
Chicago-based mortgage company Guaranteed Rate has doubled its headcount, to 10,000, since the beginning of 2020, the firm's chief marketing officer, Steve Moffat, tells Crain's in an email.
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"I have definitely been recruiting heavily all year," says Kathy Kwak, executive vice president at Proper Title, a Chicago-based title insurance firm. She says the firm has grown by about half, to 98 people, in the pandemic year, and "I'm continuing to hire. How many I hire will really depend on how long this continues."
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