Spring Housing Market Reaches Fever Pitch as Boomers Take it by Storm
Just as home buyers in Chicagoland thought there might be some relief from the market frenzy of the last few years, the spring market has taken them back.
In March, the number of detached homes sold was 18.3% lower than the same time last year, with 2,432 homes sold. Though time on market was also up 16.7%, according to local Realtors, they are still seeing packed open houses, multiple offer situations and homes going over asking prices.
"The data suggests a longer time on market," said Mainstreet CEO, John Gormley. "But in some areas, time on market is still in the single digits."
The median sale price of detached homes in March of this year was $339,900, up 0.6% from March of last year when median sale price was $338,000. March was the first time this year median sale prices increased over last year. The number of homes under contract was also down 21.8%, from 3,939 in March 2022 to 3,079 in March of this year.
It's baby boomers who are taking the market by storm. According to the National Association of REALTORS® baby boomers now make up 39% of home buyers - the most of any generation - an increase from 29% last year.
"I'm seeing this everywhere, it is absolutely a case of millennials versus baby boomers," said Debbie Pawlowicz, president for the Mainstreet Board of Directors. "Although boomers have the edge because they typically have decades of investing equity into their homes."
Despite this, Pawlowicz encourages millennials to get into the market, so they can begin building their own wealth. "Millennials should absolutely still pursue homeownership, they just need to bring their A-game to get the home of their dreams," she added.
"In this competitive market, Mainstreet Realtors are helping their buyers rise to the occasion. They are ensuring their clients' financing is ready, they have received pre-approval and that they are putting in offers that make it easy for sellers to accept," said Gormley.
The sales of attached homes in March was also down 25.3% from 1,540 in March 2022 to 1,150 in March of this year. Time on market increased a slight 5.1% from last year to this year and prices remained 7.1% higher, increasing from $210,000 in March 2022 to $225,000 this year.
In Chicagoland, following were several of the suburbs where average market time decreased from March 2022 to March 2023, meaning homes were still moving quickly: Antioch (12.9% decrease in average time on market); Brookfield (49.0%); Elmwood Park (21.4%); Green Oaks - Libertyville (7.7%); Hanover Park (21.5%); Hinsdale (41.8%); Lake Villa - Lindenhurst (29.2%); Long Grove - Lake Zurich - Hawthorn Woods - Kildeer (39.6%); Markham (11.3%); Mundelein (13.3%); Niles (55.9%); Orland Park (36.8%); and Western Springs (32.5%).