More empty-nesters moving away from the city

Realtors along the Randall Road/Route 47 corridor, which includes Huntley, Hampshire, Elgin, Lake-in-the-Hills, Algonquin, Gilberts and other communities, are rejoicing as they experience a 21-percent jump in sales over last year at this time.

"Things are going really well. We are selling homes at a very steady pace," said Tom Hall, managing broker of Huntley Realty. "We have seen a really nice jump and it has been composed of a mix of buyers."

Real estate agents have seen plenty of first-time buyers who are leaving their parents' home or who want to stop paying rent because it no longer makes sense to them, he said. They have also seen move-up buyers who were waiting for the recession to end before relocating to a larger home with more space for growing children or elderly parents.

In addition, Hall said many downsizing empty-nesters are moving to the area's many active-adult communities, coming from Chicago, Des Plaines, Park Ridge and other suburbs to the east. Their previous homes in the city and close-in suburbs have sold extremely quickly and they have come to Hall and his fellow Realtors looking for quick closings.

"For those desperate buyers, we have to only look at homes that are already vacant, many of which are owned by banks. Because with an occupied home, even if you find a highly-motivated seller, they usually can't get movers in time for a really quick closing," Hall said.

"But the bank-owned properties have been great. The previous problem of banks being overwhelmed and not responding to offers in a timely manner has remedied itself," he said. "They have now had years of experience and the process has become very quick. With most banks you get an answer in less than 24 hours.

"We have actually seen two or three offers above list price for these homes because there is so much pent-up demand. It is reminiscent of what we saw in 2005 and 2006 with multiple offers and quick decisions," Hall said.

Realtors are finally seeing the domino effect that they have been hoping for with first-time buyers choosing to buy over renting. They buy the small homes, which frees up their former owners to move-up to larger homes and so forth.

The boom market has been slow, however, to reach the luxury market in the Huntley area.

"While it takes 100 days to three months right now to sell the average home in the Randall Road/Route 47 corridor, it takes five to six months to sell the average home priced $500,000 and over, and they are generally still selling at a discount unless they are exceptional with all the bells and whistles because when people spend that much money, they expect it to have things like three-car garages, granite countertops, beautiful woodwork and so forth," Hall said.

How does your local market differ from what you are hearing about the Chicago market?

"Everything is flying off the shelves in Chicago because of all the international buyers that have been shopping here over the past three or four years. My friends who sell real estate in the city tell me those are the buyers who drove the market for premium properties on the Gold Coast and anywhere with a view of the lake.

"Chicago's real estate has been inexpensive compared to real estate in other big American cities and places like London, so they were buying here. More recently, with the fall of the euro, many of those buyers have retreated from the market, but Canadians are still actively shopping in Chicago."

The movement of several large technology companies into Chicago from suburban locations because executives believed that was the best way to attract millennial employees to their workforces has also helped the Chicago real estate and rental markets, Hall said.

How are multifamily units selling in the Randall Road/Route 47 corridor?

"The market for townhouses, duplexes and condominiums has been super-hot. They are generally selling in less than 90 days here and that is because of the price. While the average single-family home is selling in the mid $200,000s, you can buy a condominium for around $100,000 or a townhouse for between $125,000 and $135,000. It is a matter of affordability."

But multifamily homes in the area have also seen a very nice appreciation for their owners recently, he said. Condominiums in Lake-in-the-Hills that were selling for between $25,000 and $30,000 at the bottom of the market are now selling for more than twice that and are flying off the shelves - mainly to first-time buyers and to empty-nesters who want them as a secondary home for when they return to Chicago to visit family, Hall said.

Is there still room for improvement?

Hall said he is looking forward to the high-end market returning.

"But beyond the obvious concerns of taxes and good schools and parks, it is jobs that drive the real estate market. It takes leadership to attract businesses and jobs. As we see more and more development of retail, restaurants and industry in our corridor, the demand for high-end real estate will increase and so will home prices."

Hall said a new interchange at Route 47 and I-90 is definitely helping. In fact, Global Trade magazine recently ranked Huntley as one of the Top Ten American cities in terms of business environment for future growth. Its neighbor, Elgin, is already a mecca of sorts for foreign firms.

Hall can be reached at (847) 669-4010 or by visiting www.huntleyrealestate.com.