The spring real estate market is kicking into high gear, but you’ll be forgiven if you didn’t notice. There’s not a flood of inventory hitting the market, and buyers are struggling to get their offers accepted in a crowded field. Locally, buyers and sellers seem to be stuck in the same cycle that’s dominated the past few years: low inventory, high prices and fast-moving sales.
Local experts say they are getting used to the market conditions, but that doesn’t make it any easier on them or their buyers. On the other hand, sellers may be enjoying another year of high demand.
Kris Sagan has been working with REMAX in the Village for 22 years. The Realtor says of this year’s market, “The spring market is similar to last year, and the previous year. In fact, this goes back to Covid times. The lack of inventory continues to be one of the main issues.”
One bit of good news for buyers is that interest rates have fallen since last year. Linda Rooney of Berkshire Hathaway HomeService Chicago notes that falling rates might have increased the number of potential buyers in the market, but without a corresponding bump up in inventory, that’s resulting in a tougher climate for buyers.
Sagan says lower rates make buying a home more affordable, but because it hasn’t made it easier for potential buyers to nab a home, she’s putting more time into educating potential buyers. She uses her initial consultations with buyers to make sure they know the local market and what to anticipate.
“It’s difficult to go see a property, put in a good offer and then not get it,” Sagan says noting that some buyers are pulling back because they’re weary of the process. Other potential buyers may love Oak Park, but they are expanding their search to River Forest, Riverside, Elmhurst and LaGrange in the hopes of finding a home they can get under contract.
Rooney is seeing the same thing. A few of her clients in recent years have abandoned their search locally and settled in Bolingbrook, Naperville and Aurora where they can get more for their money.
“People are making that decision. Getting into Oak Park is just really hard,” says Rooney.
The village board’s push for more “missing middle” housing is meant to address the shortage of available housing through zoning changes. Rooney has attended meetings on the proposed changes and notes, “There are not a lot of places for first time homebuyers. I can suggest townhomes… but, I think people do have that idea that they want to move into a house with kids.”
At this point in the season, Rooney says the bidding wars are already breaking out, and she’s already participated in several bidding wars on behalf of clients, at a range of price points. She’s heard of open houses with 40 people in attendance and a two-flat garnering 17 offers.
“People are offering to buy as-is, with no requests, going over the asking price, and they’re still not getting it,” says Rooney.
Sagan says, “I’m hearing about colleagues writing offers for $50,000 over list and not getting the house.”
Both Rooney and Sagan say this is hard on buyers, who can get emotionally invested in the process, and hard on Realtors who spend a lot of time working with clients without results. Both say it’s not unusual to work with clients for more than a year to find the right home.
Sagan says the upside of all this is that it’s a great time to sell a house. “Properties that are prepped well, in good condition and priced well are getting multiple offers.”
Sagan notes that mid-March is when Realtors are seeing closing numbers for contracts that were signed in January or February, and what she is seeing so far points to higher prices. “We’re seeing impressive numbers, well over ask.”
Rooney says Realtors are struggling to get listings, but when they do, they go very fast. “The middle in Oak Park is now $500,000 to $700,000 and that’s just incredibly competitive.”
All of Rooney’s current listings are older homeowners looking to move. She says these types of homes tend to need some updating, but homes that need work are “pretty viable for people right now because they just want something.”
Oak Park remains a highly desirable place to live due to its location near the city and historic housing stock, and the Realtors don’t see that changing anytime soon. “People love Oak Park,” Rooney says.