On a recent winter afternoon, I sat down with the board members of local industry group, the Oak Park Area Association of Realtors.
OPAAR’s mission promises it “advocates, protects, and promotes the interests of its members and the public they serve,” and in that vein, the group of local realtors discussed with me how they serve the local real estate community, changes to their profession, and what they think the future might hold for real estate in Oak Park and the surrounding areas.
What is the OPAAR?
Sharon Halperin, Association Executive of OPAAR, said that the real estate organization is one of the oldest in the state: OPAAR celebrated 100 years in the community in 2017. As a trade organization that supports local agents, she said, OPAAR prides itself on professionalism, honor, education and collegiality.
The organization provides educational opportunities for all members, which board director Bruan Yabes said helps agents serve clients better. Whether educating about radon testing or hosting events with affiliate members such as lenders and attorneys, OPAAR organizes ways to help agents, new and experienced, keep apprised on real estate-related issues.
“Because this area is so unique, we have unique opportunities for education,” said board member Monica Dalton. “Our property taxes here are unique. We will have [township Assessor] Ali ElSaffar in to address our group on tax issues. With our historic housing stock, inspections can be very different here, so we can address this within our group.”
The group also works to foster relationships among members. Even though the area is home to many different brokerages, fostering a culture of community is a key component of OPAAR.
OPAAR members host broker tours each Tuesday at their active listings. Board member Deborah Wess called the tours, “a huge part of our culture.
“We get to know each other at brokers tours,” she added. “It helps the agents to know each other.”
The benefits of local
Board president Cynthia Howe Gajewski said that while the relationships built by OPAAR are beneficial to agents and clients, “we are not granting any favors. We represent our clients in the best way possible.”
She added that agents who are on the ground in the community know about issues that interest local buyers and sellers. For example, it pays to have an agent who is well-versed in local historic districts, because there are limits to remodeling work that can be done on the exterior of houses that are contributing to the districts.
“Being from here, lends itself to the idea that we’re selling the community as well,” said member Bobbi Schaper Eastman. “We know about the libraries and the fire department.”
OPAAR meets with leaders from village government in Oak Park, River Forest, Forest Park and Elmwood Park to keep abreast of relevant community governance.
Board member Edwin Wald said that people who seek out this area to buy a property are drawn by the architecture and the historic housing stock, adding that the schools are huge draw, as well. The board reports that living and working in the community allows agents to better represent their clients.
What’s ahead in 2025
The OPAAR board agreed that 2025 appears to be headed for more of the same when it comes to local real estate: tight inventory and high prices.
Mortgage rates in the 7% range are historically average, but they can seem high to a population that currently owns a home financed at 2% or 3%.
“For people sitting on a low mortgage rate, this is a hard mental shift to make,” Howe Gajewski said.
Dalton pointed out that a couple who is downsizing could be facing a similar overall payment even though they’re taking on a smaller property. All of this is keeping older buyers from selling their properties and younger buyers from entering the market.
“The age of the first-time buyer has gone up to 38, member Linda Rooney said.
Wess pointed out that a lot of first-time buyers are now getting help from family to compete with cash buyers.
More investors are backing out of the area or holding off making purchases because it has become expensive to flip homes, according to Wald. He sees this as a leftover from pandemic resource problems.
Others, like Wess, point out that the recent election may have slowed activity, “to the sense that a general sense of uncertainty maintains or increases, it’s not good for the housing market.”
According to Halperin, in spite of these challenges, life events such as marriage, new jobs and children still push people to move, and board member Vanessa Rankins said that she sees people growing more accepting of mortgage rates in the 6% to 7% range.
“Marry the house, date the rate,” Schaper Eastman said.
All of the agents point toward an increased reliance of locals on the Private Listing Network, which allows sellers to shop their houses without formally listing on the Multiple Listing Service.
Board member Elissa Palermo said that at the time of the meeting, Oak Park had 17 single family homes on the PLN and 18 on the MLS. In River Forest, there were seven homes on the PLN and three on the MLS.
The agents said that they present the options to their clients, and more and more like the privacy of listing first on the PLN. They see advantages in not having people view their home at open houses, and they can sell their home as is, without making repairs.
Agents say the PLN has the advantage of having fewer requirements for listings. When less information is advertised about the home for sale, sellers have to do less work to make sure everything is perfect. In addition, homes on the PLN don’t accumulate market time, a stat that can hurt homes that are perceived to be sitting on the market when they are publicly listed on the MLS.
“Sometimes, less is more,” board member Chris Curran said. “Buyers feel they got lucky by getting a house before it gets to market, and sellers feel it’s easier to sell without all the hassles.”
Curran also pointed out that use of the PLN might be contributing to rising prices. Off-market sales might generate increased prices of 5% to 10% because buyers will pay more to get a house before it is listed publicly, and appraisals aren’t needed for cash offers.
“This drives prices up,” Curran said.
Wald concurred, saying that selling more homes before hitting the MLS contributes to the perception that inventory is low, which in turns drives up prices because buyers will offer more for a home when they feel inventory is scarce.
The board agreed that recent changes to broker compensation as called for by a recent settlement with the National Association of Realtors (see https://ow.ly/QAgB50UQjRF) haven’t yet had much effect locally. All buyers now sign a contract outlining the fees paid to both seller and buyer agents, which the agents say makes the entire issue of pay transparent. In general, the agents say that buyers are asking sellers to pay the entire fee and are writing that into their contracts.
Homebuying seminar
On Wednesday, Feb. 19, OPAAR will be hosting a first-time homebuying seminar at the Oak Park Public Library, 834 Lake St. in the Veterans Room.
Free to the public, “Easing Into Homeownership” will feature local experts who will help demystify the home buying process. Attendees will learn about financing approaches, as well as down-payment assistance and other assistance programs. A Q&A with the experts will follow the presentation.
Questions? Contact info@oakparkrealtors.org
Registration is helpful but not required. Please register here.
