Homebuyers Reassess Their Priorities in a Slightly Slower-Moving Spring Market

With detached home sales down and time on the market up again last month in northern Illinois, it's clear that area homebuyers are beginning to feel more comfortable taking their time to find the perfect home.

"It's still a seller's market. We're still seeing well-maintained homes move quickly and for top dollar," said Debbie Pawlowicz, president for the Mainstreet Organization of REALTORS® board of directors. "But buyers seem to be adopting a different mindset than we saw during last year's crazy spring market, when people were buying anything they could get their hands on. They are definitely becoming a bit more selective again as the market continues to trend in this direction."

The median sale price for detached single-family homes was $365,000 in May 2023, which is exactly the same as the median sale price during the same time period last year. However, the number of detached homes sold was down 20.8% between May 2022 and May 2023, and time on the market was up 44.8%, from 29 days in May 2022 to 42 days in May 2023.

"These trends are consistent with what we've been seeing all year, and especially since the spring market kicked off," said Mainstreet CEO John Gormley. "It's still unclear whether we're entering into a pre-pandemic market, or whether this unprecedented, unpredictable market is simply our new normal. But buyers are taking their time to educate themselves about how to make the most of current conditions, and the best way they can do that is by working with a Mainstreet Realtor who has the latest data and expertise buyers need to make smart decisions."

An increase in patience and educated decision making isn't the only thing changing among buyers this spring. Area Realtors are noticing that buyers are becoming more interested in move-in ready homes and those requiring only quick fixes.

"We're not seeing as many buyers interested in gut renovations or flipping homes this spring," Pawlowicz said. "There is a lot more excitement for move-in ready homes this year, or if not move in-ready, homes that can be fixed up quickly so they can start generating value right away as income properties or long-term family homes."

Some of these shifts in buyer behavior may be due to current interest rates, which remain high, especially compared to the extremely low rates available during the height of the pandemic.

"We do hope to see interest rates come down in the next year, and it's clear that buyers do too," Gormley said. "But the smart buyers are realizing that interest rates aren't a reason to hold back on buying now. They're just a reason to be more intentional."

"It's still a great time to jump into the game, and there are still many communities in our region where you can find a great deal as a buyer," Pawlowicz agreed. "It's just more important than ever to cover all your bases, from pricing to terms, with a Realtor by your side."

Attached home sales followed similar trends to detached homes in May, with the number of houses sold down 23.9%, from 1,761 in 2022 to 1,341 in 2023. Time on market for attached homes increased from 26 days in 2022 to 31 days in 2023. However, unlike detached homes, the median sale price for attached homes increased over last year, up 7.7% from $221,000 in 2022 to $238,000 this year. Attached homes may be commanding higher prices due to the lack of affordable housing in the region and the country as whole. According to the National Association of REALTORS®, the U.S. housing market is missing about 320,000 home listings valued up to $256,000, the affordable price range for middle-income buyers.

In Chicagoland, following were several of the suburbs where the median sale price for detached homes decreased from May 2022 to May 2023: Bensenville (-13.7% change in median sale price); Bloomingdale (-16.7%); Calumet Park (-32%); Country Club Hills (-19.6%); Fox Lake (-13.7%); Glen Ellyn (-15.8%); Lisle (-14.3%); Merrionette Park (-15.2%); Niles (-19.4%); Northlake (-13.5%); Stone Park (-45.7%); Summit (-31.4%); Villa Park (-18.6%); Willow Springs (-16.5%).