CHICAGO—The spring season for home sales is about to begin, and a new poll by RE/MAX found that its brokers predict buyers will be more active in 2015 and pay significantly more than they did in 2014.
“Home prices in our area were fairly stable over the last half of 2014 after achieving solid gains during the spring market,” says Doug Hanscom of RE/MAX Properties in suburban Western Springs. “This year is starting off even stronger than last. We're seeing more properties going under contract at close to their asking price.”
The median sales price for homes in the Chicago metro area in 2014 was $195,000, or 9% higher than in 2013 and 22% more than the 2012 price. And the RE/MAX brokers now anticipate that prices will rise about 5% over the course of 2015 though they admit that stronger gains are possible.
A number of RE/MAX brokers attributed the year's strong start to a higher level of consumer confidence.
“There's a lot of positive energy in our market right now,” says Marion Digre of RE/MAX in the Village, Realtors®, of Oak Park. “Traffic at open houses has been strong. New listings are getting a lot of showings, and several homes that didn't sell last year have already gone under contract with multiple offers.”
One sector that presents a mixed picture is the market for homes priced at $1 million or more, according to Mimi Burke with RE/MAX of Barrington.
“Demand for homes in the $1 million plus category has rebounded during the first quarter,” she says. “However, the supply of listings priced close to $2 million and above in our area continues to exceed demand, so asking prices are under pressure. One trend we've noticed is that luxury buyers currently are more interested in the quality of finishes than in the square footage of the home. There's less desire to maintain and pay taxes on a huge house. Sellers need to be aware that buyers' priorities are changing.”
Still, the most important factor in the coming year should be the improved employment outlook, says Matt Boemmel of RE/MAX Exclusive Properties in Chicago. “When people are confident they can maintain their income stream, meaning that either their job is more secure or that other job openings are plentiful, they're more comfortable making the major financial decisions involved with buying and selling real estate.”
“But this still remains a very conservative market," says Val Hatzelis of RE/MAX 10 in Oak Lawn. “Home shoppers are looking for value and well-maintained homes. Properties selling at $220,000 to $250,000 are drawing a lot of attention. I expect improvement in our overall market this year but even a better market in 2016.”
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