The month of May saw 798 total single family homes close across the entire city. That is actually down from the number of closed single family homes in the month of April, 826 total in Chicago. Considering many homes that went under contract were tax buyers, this is somewhat of a surprise to us. One would think that there would be an increase from April to May with the tax credit deadline falling at the end of April.
We saw the number of sales drop month to month by about 3.4%. Let’s see what the average prices for closed homes did over that same time period.
The average sales price for a single family home in Chicago for the month of May was $240,995. The average sales price for a single family for the month of April was $231,025. We saw a 4.2% price increase month over month. The average market time for a closed home dropped slightly from April to May by 2 days (133 Day on market average in April & 131 Day on market average in May).
One of the more alarming trends that we are seeing is that there is still a large amount of owners grossly overpricing their home when they are originally listed. The original list price to the final sales price is about 61% for both April and May. What that means is the properties that do end up selling were priced too high to begin with. It’s like listing your home at $100,000 and have to cut the price $40,000 to get your home to sell at $60,000. That percentage drop from the original list price is staggering. Generally price cuts from your original list price of 20% or more can tarnish the image/perception of a property. Some buyers may think they are getting a better deal, but others may question that dramatic of a price drop and feel that there is something wrong with the property and that may show up in a buyer making a low offer.
In today’s market a solid pricing strategy can be one of the most important aspects of selling your home. You can have the best marketing in the world, but if you are priced too high, the buyers will tell you by not looking at your home. If you are currently looking to sell your home and would like a CMA and consultation on how we can sell your home, call Phil today at 312-953-6725 or email him at firstname.lastname@example.org