In this video, we’ll look at current market conditions in Naperville with a view toward writing a competitive offer. In particular, we will consider:
✅ How many homes were listed and sold
✅ What percent of homes got multiple offers
✅ How much over asking they sold for
✅ What percentage of homes reduce their price
✅ How often a home that was previously under contract comes back on the market
Eric Andersen, B.A., M.Div.
Owner/Designated Managing Broker, Eric Andersen Homes
📲 Text/Call: 708.674.6725
📩 Email: eric@eandersenhomes.com
🌎 https://www.ericandersenhomes.com
Did you enjoy this video or find it helpful? If so, be sure to 𝐋𝐈𝐊𝐄, 𝐒𝐇𝐀𝐑𝐄, & 𝐒𝐔𝐁𝐒𝐂𝐑𝐈𝐁𝐄 to my YouTube Channel.
Want to know what your home is worth?
https://www.ericandersenhomes.com/go/home-value/
Looking for homes for sale? Search the entire MLS on my website: https://www.ericandersenhomes.com/homes-for-sale/
Or, better yet, contact me directly for help with buying or selling a home: https://www.ericandersenhomes.com/contact/
I have a number of awards and designations, including:
⭐️ Gold, Diamond, & Platinum Sales Award (Mainstreet Organization of REALTORS®)
⭐️ 20 under 40 (Mainstreet Organization of REALTORS®)
⭐️ Endorsed Local Provider (RamseyTrusted)
⭐️ Best of Zillow
⭐️ Pricing Strategy Advisor (National Association of REALTORS®)
⭐️ Certified Staging Consultant (Mainstreet Organization of REALTORS®)
⭐️ Accredited Buyer’s Representative (ABR®)
Transcript:
Welcome to Naperville, where a vibrant community meets a thriving real estate market. If you’re in the market to buy a home in this beautiful city, you’re in for an exciting journey. But with great opportunities comes great competition. So, how do you size up the competition and secure your dream home without the guesswork? I’m Eric with Eric Andersen Homes. In March 2024, Naperville’s real estate market saw a flurry of activity. Homes were listed, offers were made, and deals were closed. But behind these numbers is a story that every homebuyer should know.
Let’s get into the data. We’ll start with the number of homes listed and sold. In March, sixty nine single family homes were listed for sale. Fifty seven of those are under contract, and twelve are still active. That means eighty two percent secured a buyer quickly, many the first weekend on market. During that same time period, seventy one homes closed—two more than were listed—meaning market conditions remain competitive and homes are selling at a faster rate than they are being listed. Here you can see that inventory levels have languished at about a one months’ supply over the past three years.
Let’s also look at how many homes sold over asking price, giving you insight into the competitive landscape. Thirty percent of new listings, twenty one and all, got multiple offers in March, and they went for an average of five point seven five percent over asking price. Average asking price was about seven hundred thousand dollars on these listings, and they sold, on average, for about forty thousand dollars above asking. Just one went for asking price, 3639 Schillinger. The range was about two percent over on the low end (1933 Montclair went for just 10k over), and 9S341 Skyline went for whopping nineteen percent over, which was almost two hundred twenty one thousand above asking. Also noteworthy is 2345 Kalamazoo, which was asking six hundred fifty nine thousand nine hundred dollars and sold for seven hundred seventy five thousand dollars. So if you have offered forty thousand dollars above asking on each of these twenty one homes, you would only have won about sixty two percent of the time.
In a market like Naperville’s, writing a competitive offer is crucial. But it’s not just about offering more money. It’s about understanding the nuances of the market and crafting an offer that stands out. In a market like this, it’s not unusual for a buyer to have to write several offers before getting one accepted. Of the homes that sold in March, about half went over asking. One of my buyers secured a contract last weekend on a home where there were eleven other offers. So if you find yourself on the outside, you may be wondering what the odds are that the home you lost out on might become available again. Cold feet is a real thing. Just because a buyer got a contract on a home doesn’t necessarily mean it will close. I found five homes over the past month where the agent said the buyer got cold feet, which comes to about seven percent. So it doesn’t happen all the time, but it isn’t unheard of, either.
You may also be wondering about price changes. Higher market time definitely gives you leverage as a buyer. As days on market creeps up, sale price tends to creep down. About eight percent of homes reduced their price in March, which is oddly close to the number of contracts that ended up getting cancelled. So using round figures, you have about a one in ten chance at getting a second crack at a home you lost out on the first time, and about the same odds as a home reducing their price.
But importantly, I always recommend writing the lower offer while the price is still high. If you wait for the price reduction, that will generate more interest and can create competition and drive the price back up. Normally, the price doesn’t go back above the original price, but I have seen that on occasion. In terms of listings that didn’t sell? There were only four listings that expired. And if you’re waiting for an open house, you may be waiting for a long time. Only fourteen percent of listings had an open house in Naperville in March. So if you want to see it, the best thing is to get in right away for a private tour.
So, whether you’re a first-time homebuyer or have bought and sold homes before, having this data can help you prepare to write successful offers in Naperville’s competitive real estate market. I’m Eric with Eric Andersen Homes, a family-owned brokerage where we treat our clients like family.