So… How’s the Real Estate Market?

It’s a Sellers Market

The minute someone runs into a realtor, it’s inevitable the first question they ask is, “How’s the real estate market?” Seems like a simple question, right? However, this answer is much more complex and requires a lot more questions before answering, such as: What city/town/county? What’s the price range? Are you a buyer or a seller? 

The national news loves to answer this question for everyone and throws out national data that does not always reflect what is happening in your individual market, and it’s important to narrow down a very big question to get a better understanding about what is truly going on in your town, county or even neighborhood.

The real estate market is based on supply and demand, so understanding the months’ supply of homes in your marketplace is critical when speaking about the current real estate market. Months’ supply refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace. A seller’s market is typically three months or less of inventory, and a buyer’s market is six months or above. 

As of February 2023, both Kane and DuPage County were at 1.2 months’ supply, which indicates a seller’s market.  In January 2020 (life before COVID-19), Kane was reported at 3.7 months’ supply and DuPage at 3.9 months. Market time is also a critical part to this real estate question, which is the number of days it takes a house to go under contract (an offer that is accepted). As of February, both counties came in strong with only nine days in Kane and 10 days DuPage, whereas in  January 2020 (again, life before COVID-19), market time came in at 34 days in Kane and 35 days in DuPage.

What does all this data mean? We are in a seller’s market with a low supply of homes on the market, with buyers still strong in the marketplace. This data changes monthly, and there are a lot of variables, which is why it so important to not just rely on the national news for your real estate, but to reach out to your local realtor for the data. 

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