Market rebound strongest on lower end

Denise Curry of Baird & Warner Real Estate in Palatine has been selling homes and properties for a decade so she has seen a lot of ups and downs in the market. It was flying high when she started in 2007, then quickly sunk into the depths of the recession. Now it is on a wobbly rebound.

"The market in the Northwest suburbs is much better than it was in 2010. It is even better than it was in 2011. In fact, we experienced a big bump in closings in both February and July of this year. But the average sales price of single-family homes is down right now, compared to a year ago, and both the 'time on market' and inventory level are up," said Curry, who heads the five-person Curry Team at Baird & Warner.

"In general, luxury homes are struggling and those on the lower end are selling. But I am optimistic that we are on the right track in the recovery. Interest rates remain historically low and even if they are raised a bit, it probably won't hurt the market substantially, and there are more lending tools available out there. In addition, short sales and foreclosures are no longer drags on the market. Eventually, the recovery will reach the higher-end homes, too," she said.

The recovery is radiating out from Chicago, however. Buyers want to be as close to the city as possible in order to reduce commute times and even the time it takes to get to entertainment. That is why large homes in closer-in communities will rebound sooner than those in suburban communities that are farther removed from Chicago.

"Home prices on the North Shore and in the northwestern and Western suburbs are up, but the coming election will bring more clarity. Nothing is set in stone and the result of the elections may affect people's willingness to invest in a home," Curry said.

She explained that whether or not a home sells is based on three factors: its price, condition and location. "It is like a three-legged stool and all three elements need to be there for a sale. Pricing and staging are critical."

Curry admitted, however, that new construction in the Palatine-Hoffman Estates-Inverness area is impacting sales in the surrounding existing-home market right now.

"Builders that have been sitting on land are now building and those new homes are competing with our resale homes," Curry said.

New homes have the granite countertops and open floor plans that everyone wants and nothing needs to be done to update them. Earlier generations were willing to buy a house that needed work and live with it for awhile before making improvements, Curry believes.

"The millennials don't even want to take down wallpaper. They are busy. They are all working and their lifestyle matters to them. They want to travel and have fun, so they don't want to be 'house poor'," she said.

Interestingly, Curry has observed that homes that could be torn down and replaced are selling faster than those that need to be remodeled. She knows, for instance, of builders who are looking for four-lot parcels where they can build new homes

Also on the sales "fast track" are townhouses, duplexes and condominiums, she said. Prices on those types of units in the Palatine-Inverness-Barrington area, at least, are up and the inventory is down.

"There is not as much of that kind of inventory available in this area and first-time buyers, in particular, like them so they are selling quickly," Curry said.

When it comes to conventional, single-family resale homes, it is the responsibility of the Realtor to show potential buyers every possible property within their price range, but she admitted that they frequently get requests for certain school districts, as well as for particular lifestyles, like large lots versus in-town, walk-to-train locations.

"Inverness is a bit unique in that it usually involves a minimum of one acre, but is also only five minutes from the train and close to expressways. You can have it all in Inverness. In addition, it was recently ranked as one of the safest communities in Illinois," she said.

For more information, visit www.denisecurry.bairdwarner.com or call (708) 502-0008. Her office is located at 585 E. Dundee Road, Palatine.