Downers Grove Real Estate Guide (Q1 2024)

METHODOLOGY

Overview of Terms and Downers Grove Submarkets

CLOSED:closed transaction reflecting the final sales price (does not include any seller credits)

CONTRACTED:contingent or pending transaction reflecting the latest asking price

CONTRACT TIME:number of days between the first list date and the contracted date (does not include time from contract to close)

HOME INVENTORY:number of homes currently available for sale

MEDIAN:middle value of a given dataset (all report values are medians, which are less impacted by outliers than averages)

PRICE DISCOUNTS:percentage difference between the initial list and recorded sale price

PRICE PER SQ. FT:ratio of the median price to the median sq. footage of a closed transaction as a relative price measure

NORTH

(North of Rte. 34)

CENTRAL WEST

(Rte. 34 to 55th St. / West of Main Street )

SOUTHWEST

(South of 55th St. / West of Main St.)

CENTRAL EAST

(Rte. 34 to 55th St. / East of Main Street

SOUTHEAST

(South of 55th St. / East of Main St.)

MARKET SUMMARY

“Seller’s Market” Continues into the Spring with Very Low Home Inventory

Overall prices much higher(impacted by mix), but relative prices flattenedfrom Q1 last year

NEW LISTINGS

 New listings were down over 15% in Q1 driven by homes priced below $700K

 January and March were soft (both down 20%+) with an increase in February in the middle (up nearly 10%)

Rolling Last 12 Months (YoY%)

 Q1 experienced lower new listing activity across submarkets, except Central West (increased by 2 homes from last year)

 Currently all areas showing listing declines over the last 12 months (North and Central East at historical lows)

 Despite the softer quarter, Southwest continues to have the most new listings over the last 12 months (down the least)

CONTRACTED HOMES

By Price Range

 Contracted homes declined more than 30% for the quarter; all submarkets saw contracts fall with larger decreases below $700K

 Contracts were down each month during the quarter; January and March were each down 35%+ and February 25%+ lower

Contracts will be limited until new listings begin to show increases

Jan. –Mar. (YoY%)

Price Range'24'23%

<$400K 2047-57%

$400K - $699K 5574-26%

$700K - $999K 1617-6%

$1M+ 912-25%

Rolling Last 12 Months (YoY%)

 Downers Grove submarkets showed contract declines across all areas; Southern submarkets decreased the most

 Central West area remains positive for the last 12 months (only submarket)

 North area had another large decline in Q1 and has the lowest activity over the last 12 months (25+ contracts less than the next closest submarket)

CLOSED HOMES

By Price Range

 Closed homes were down 35% in Q1, including each individual month lower; homes priced $1M+ increased (by 1 closing)

 Despite the declines for homes priced below $700K over the last 12 months, this price range captured ~75% of all closings

Closing activity expected to follow decline in listings / contracts with low home inventory

Jan. –Mar. (YoY%)

Price Range'24'23%

<$400K 1540-63%

$400K - $699K 4256-25%

$700K - $999K 1011-9%

$1M+ 7617%

Rolling

 Downers Grove submarkets were all lower fore the quarter; Western areas saw the largest declines

 Despite the soft quarter, Central West continues to be slightly up (increasing 2%) over the last 12 months

 Central East remains down 20%+ over the last 12 months (this area saw a recovery before others and has since fallen)

HOME INVENTORY

 Available homes declined over 5% in Q1; homes priced over $700K are up and now represent 60% of home inventory

 Overall inventory is down nearly 70% from March 2020 and is at 15+ year lows Scarce inventory expected to continue driving “seller’s market” conditions

Mar. Trends (Relative%)

 Home inventory is down meaningfully; only Southwest increased from last year (Central West was flat)

 West areas represent ~50% of all available home inventory

 Central areas and Southeast have seen the largest declines over the last couple years (down ~75% from March 2020)

North Central West Central East

Southwest Southeast

CONTRACT TIME

 Days between listing date and contract signing are low, and declined further across price ranges other than $1M+

 Very low contract times showing large percentage moves with small changes

Expect contract times to remain short with limited home availablity

 Downers Grove submarkets experienced mixed contract times in Q1; Central East saw a large increase while North and Southeast significantly decreased

 Eastern areas are the only areas higher over the last 12 months (South was flat)

 Homes on the market for more than 2 weeks could be overpriced or have other factors impacting time / interest

PRICE DISCOUNTS

 Price discounts tightened across price ranges during the quarter; homes priced $400K –$700K and $1M+ sold at full price

 Although homes priced $700K –$1M had some negotiability in Q1, this range closed at listing price over the last 12 months

Price discounts expected to remain narrow with limited home inventory

By Submarket

 Most submarkets sold around asking price for the quarter; Central areas saw some discount that also widened slightly

 Only North area traded with a discount over the last 12 months, but this submarket was full price in Q1

 Southeast has been around full price for more than 2 years

Rolling Last 12 Months (YoY%)

PRICE PER SQ. FT.

 Price per sq. ft. flattened some overall in the quarter; price range with the most closings ($400K –$700K) actually declined slightly

 Homes priced $1M showed the largest decrease in Q1 from an outlier last year; this range is up the most over the last 12 months

Relative prices have moved up meaningfully and remain near historical highs

<$400K $227$2175%

$400K - $699K $236$243-3%

$700K - $999K $281$22326%

$1M+ $331$418-21%

 Relative price growth continued across areas for Q1, but it slowed / flattened

 Most submarkets setting new highs (3 of 5 areas) over the last 12 months;

Central West and Southeast experiencing double-digit growth

 Central submarkets continue to hold the highest relative prices

Rolling Last 12 Months (YoY%)

Central

Southwest $226$2231%

Southeast $261$2476%

CLOSED SALE PRICES

 Closed sale prices were higher across areas in Q1; overall closed prices increased much more than relative prices due to mix

 All submarkets are now up over the last 12 months (3 of 5 areas setting new highs); Central West approaching $700K price

While sale prices are up, home mix (larger, updated, etc.) is having a significant impact

Submarket'24'23%

North $611K$405K51%

Central West $681K$597K14%

Central East $418K$373K12%

Southwest $593K$451K31%

Southeast $475K$430K10%

CLOSED SALE VOLUME

 Overall closed sale volume for single-family was down more than 15% for the quarter, but less than 5% lower over the last 12 months

 Despite a soft quarter, Central West remains up nearly 20% during the last 12 months; Central East had a strong Q1

Central areas and Southwest are the largest sale volume submarkets in Downers Grove

Jan. –Mar. (YoY%)

Submarket'24'23%

North $6M$6M-1%

Central West $13M$17M-21%

Central East $6M$5M18%

Southwest $9M$13M-32%

$

Southeast $6M$7M-5%

M (-15%)

M (-2%)

Analyzing Western Suburb Markets

SUBURBS

Compass is a licensed real estate broker and abides by federa l, state and local equal housing opportunity laws. All materialpr esented herein is intended for informational purposes only, is compiled fr om sources deemed reliable but is subject to errors, omissions, and changes without notice. Sources include Midwest Real Estate Data LLC. This is not intended to solicit pr operty already listed. Closed Vo lume based on MLS market share, including off-market sales, from 4/1/23-3/31/24. #1 Compass Team in DuPage based on MLS Market Share, including off-market sales, all property types, from 4/1/23-3/31/24.