Elmhurst Real Estate Guide (Q1 2021) by Kelly Stetler Real Estate

Q1 2021

ELMHURST

LOCAL REAL ESTATE GUIDE

OPENING NOTE What a difference a couple months make! The weather is warmer, vaccines are available, and restrictions are lifting as our lives continue to normalize. Despite the challenges that still exist around us, it is much easier to be optimistic about the future. Congratulations to our recently elected local officials, we will need your leadership and willingness to work together to keep Elmhurst a thriving community. There are a lot of ways to describe the current real estate market…fast-moving, “on fire” perhaps or maybe even crazy! Buyer demand continues to outpace available housing, which has driven price increases and created frustration for those looking to move within town or to Elmhurst. Local market knowledge on how to price, market or pursue a house are incredibly important in today’s environment. For the cover I chose York Stadium. It is so exciting to see our teams back on the field this spring! All my best,

630.750.9551 kelly.stetler@compass.com www.kellystetlerrealestate.com

WHAT’S INSIDE 8

FEATURES

New Listings

House Pricing

Contracted & Closed

New Construction

Home Inventory

Contract Time

Price Discounts

Price Per Sq. Ft.

Closed Sale Prices

Listing Price Strategy (Kelly Stetler, Compass Real Estate)

Flower Decor

How to Decorate with Flowers (Courtney Wyszynski, Phillips Flowers & Gifts)

Common Designer Myths

Partnering with a Designer (Michelle Polay, Polay Interiors)

Loan Processes

Perfecting the Home Purchase Process (John Noldan, Guaranteed Rate)

Closing Terms

Understanding Key Real Estate Terms (Themis Katris, The Katris Law Group)

EVERY ISSUE 3

METHODOLOGY Overview of Terms and Elmhurst Submarkets NORTH CLOSED: closed transaction reflecting the final sales price (does not include any seller credits)

(North of North Ave.)

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)

CENTRAL WEST (Prairie Path to North Ave. and Rte. 83 to York St.)

CENTRAL EAST (Prairie Path to North Ave. and Hwy. 290 to York St.)

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 price to the square footage of a closed transaction as a relative price measure (factors in home size)

SOUTHEAST (Prairie Path to Butterfield Rd. and Hwy. 290 to York St.)

SOUTHWEST (Prairie Path to Butterfield Rd. and Rte. 83 to York St.)

Note: All figures represent detached single-family homes unless otherwise specified. Price range data based on the city of Elmhurst. Submarket figures based on the approximate areas identified on map above.

MARKET SUMMARY “Seller’s Market” Continues with Very Low Home Availability

Strong Buyer Demand

New Home Listings (Q1)

27%

Contracted / Closed Homes (Q1)

Recovering New Construction

New Home Permits (6M YoY)

16%

New build permits recovering in 2021 related to higher demo permits

Fewer Available Homes

Mar. Month End Inventory (YoY)

64%

“Seller’s market” with 14+ year low of available homes this time of year

Short Market Times

Original List to Contract Days (Q1)

Narrow Price Discounts

Closed Sale Price Discounts (Q1)

Tight discounts of less than 4%; houses selling at full price or above

Increasing Sale Prices

Sale Price / Price Per Sq. Ft. (Q1)

Higher prices across price points and submarkets

31%

Less than 20 days across submarkets and price points (except $1M+)

NEW LISTINGS By Price Range

Rolling Last 12 Months (YoY%)

 New listings finished mostly down for the quarter (except $1M+ being slightly higher)  Homes priced $1M+ have seen stable listings  January and February listings were down meaningfully, but March was up YoY due to the onset of the pandemic last year

600

 Downward YoY trend should reverse in Q2 given very low prior year new listings

500

<$400K

$400K – $699K

$700K – $999K

$1M+

411 (-22%)

400

Jan. – Mar. (YoY%)

343 (-19%) 300

-31%

$400K - $699K

119

-29%

$700K - $999K

-37%

$1M+

159 (+1%) 100 0

'19 '20 '21

'16 '17 '18

<$400K

217 (-19%)

200

'13 '14 '15

'12

'20

'10 '11

'21

'08 '09

Price Range

By Submarket

Rolling Last 12 Months (YoY%)

 Q1 showed lower new listing activity across submarkets  North Elmhurst remains up slightly over the last 12 months even with the Q1 decline  After a soft first two months, new listings increased in March driven by Southwest (up 50%+) and North

North

Central West

Southwest

Southeast

Central East

400

300

288 (+1%) 272 (-9%)

200

200 (-19%)

Jan. – Mar. (YoY%) '20

North

-11%

Central West

-48%

Central East

-39%

Southwest

-25%

Southeast

-42%

157 (-32%) 126 (-39%) 100

'13 '14 '15 '16 '17 '18 '19 '20 '21

'21

'08 '09 '10 '11 '12

Submarket

Contributed By:

HOUSE PRICING Pricing Strategy is Incredibly Important in Today’s Market

Under Value 



Over Value Market Value

May lead to lower sale proceeds (i.e. leaving money on the table) Possible to create a multiple offer scenario, which might drive more value



Could deter buyers thinking something is wrong



More likely to sell fast (within days of listing)



Chance of achieving an outlier value (i.e. test the market)



May not appraise for price



Cutting price, if needed, sends a weak message



Will drive buyer interest



Ability to create competitive tension



Potential to deter buyer interest / showing activity



Potential remains to achieve above-market value with multiple offers



Likely to sit on the market for longer period 8

Contributed By:

FLOWER DECOR How to Decorate with Flowers

Color Selection – Use greenery, whites, or cool colors to soften the setting and produce a calming effect. Use warmer colors to stimulate the senses, add contrast, and create focal points Grouping Flowers – Rather than making a more elaborate arrangement, try grouping the same flowers in one or two colors for a natural, eyecatching accent Use Interesting Vessels – While vases are great, you don’t need to use one. We like old buckets, baskets, pitchers, antique earns…really anything interesting that will safely hold water Adjust Seasonally – Some flowers are great for any season, but why not rotate blooms to refresh the look of your home and bring variety to existing interior designs Outdoor Decor – Whether it's bold jewel tones, pretty pastels, or lush earthy greens, outdoor planters are the perfect accessory for your home and also add visual interest and curb appeal 9

CONTRACTED & CLOSED By Price Range

Rolling Last 12 Months (YoY%)

 Contracted & closed homes were up 31% across price ranges; particularly strong increases at $1M+  Contract activity was up 90% in the month of March YoY due to the onset of the pandemic last year

600

 Continued strong growth in contracted & closed homes will require more listings

500

<$400K

$400K – $699K

$700K – $999K

$1M+

502 (+7%) 498 (+28%)

400

Jan. – Mar. (YoY%)

300

103

26%

$700K - $999K

11%

$1M+

138%

100 0

'21

$400K - $699K

166 (+73%)

'20

31%

'18 '19

'16 '17

126

'15

<$400K

200

'13 '14

'11 '12

'20

'10

'21

'08 '09

Price Range

273 (+30%)

By Submarket

Rolling Last 12 Months (YoY%)

 Contracted & closed activity was higher across submarkets  Dramatic increases in North and Southwest Elmhurst during last 12 months continued through Q1

North

Central West

Southwest

Southeast

Central East

400

 Central West submarket has been relatively flat for the last 5+ years

358 (+37%) 353 (+29%) 300 253 (+30%)

Jan. – Mar. (YoY%) 200

'20

North

55%

Central West

23%

Central East

22%

Southwest

22%

Southeast

33%

100

'13 '14 '15 '16 '17 '18 '19 '20 '21

'21

'08 '09 '10 '11 '12

Submarket

196 (+7%) 169 (+35%)

COMPASS CONTRACTED

Under Contract

410 W. 2nd St.

227 S. Sunnyside Ave.

559 Hillside Ave.

Selected Elmhurst Listings

Under Contract

$1.249M

~3,500

$1.025M

3,800+

LIST PRICE

SQ. FT.

LIST PRICE

SQ. FT.

LIST PRICE

SQ. FT.

5 / 6.1

5 / 4.1

4/5

BEDS / BATHS

CAR GARAGE

BEDS / BATHS

CAR GARAGE

BEDS / BATHS

CAR GARAGE

525 W. 3rd St. Under Contract

Under Contract

640 S. Cedar Ave.

~4,800

546 W. Crockett Ave.

$1.565M

Under Contract

$799K

3,800+

$749.9K

~2,900

$724.9K

2,800+

LIST PRICE

SQ. FT.

LIST PRICE

SQ. FT.

LIST PRICE

SQ. FT.

4 / 4.1

4 / 3.1

4 / 2.1

2.5

BEDS / BATHS

CAR GARAGE

BEDS / BATHS

CAR GARAGE

BEDS / BATHS

CAR GARAGE

Under Contract

585 S. Parkside Ave.

146 E. Adams St.

682 Mary Ct.

Under Contract

$487.9K

2,500+

$460K

~2,200

LIST PRICE

SQ. FT.

LIST PRICE

SQ. FT.

LIST PRICE

SQ. FT.

4/5

4 / 2.1

3 / 1.1

N/A

BEDS / BATHS

CAR GARAGE

BEDS / BATHS

CAR GARAGE

BEDS / BATHS

CAR GARAGE

366 Adele St.

Under Contract

598 Hillcrest Ave.

~3,600

135 S. York Ave.

$619.5K

Under Contract

$450K

1,400+

$419.9K

1,100+

$374.9K

~1,500

LIST PRICE

SQ. FT.

LIST PRICE

SQ. FT.

LIST PRICE

SQ. FT.

4 / 2.1

2/2

3/2

BEDS / BATHS

CAR GARAGE

BEDS / BATHS

GARAGE SPACES

BEDS / BATHS

CAR GARAGE

NEW CONSTRUCTION Permit Activity

Rolling Last 12 Months (YoY%)

 Nearly 1,100 new home permits since 2010  Permits have declined after completion of 55+ new homes at the prior hospital site  New build permits appear to be reaching a near-term bottom over the past few months

New Home Permits Issued

Demo Permits Issued

160

 Rising demo permits (outpacing new home permits) suggest higher activity in 2021

Last 6 Months (YoY%)

75 40

51 47

51 51

'20 ‘21

'20

'19

'18

'17

'16

'15

'14

New Home Permits Issued Demo Permits Issued

'21

'13

'20

'12

'19

'11

'18

'10

25 0

77 (-13%) 65 (-29%)

'09

120

 Elmhurst new construction market is relatively fragmented with only about a dozen builders constructing more than 5 houses in the last couple years  Selected builders after those noted below include Balo Builders, Castle Rock Custom Homes, Forma Nova, Great Oaks Construction, J & D Development, Mondo Builders, Wise Investment Builders, etc.  Most recently the Central West and Southwest submarkets have seen more construction activity  Significantly higher costs (e.g. rising land prices, dramatic lumber cost increases, etc.) driving prices upward; list prices have increased during construction in some cases to offset

2019 – 2021YTD (Share%) Island Construction 8% McSheain 8%

Other 74%

DuPage Homes 6% McKenna Homes 4%

2019 – 2021YTD (Share%) Southeast 14%

Other 4%

North 11% Central West 25%

Southwest 29% Central East 17% 15

Contributed By:

DESIGNER MYTHS Common Myths About Partnering with an Interior Designer Typical Interior Designer Myths 1 I only need a good contactor; the skill of a contractor is to build / remodel from plans (not design them) 2 My project is too small; designers often help with one room at a time 3 My home isn’t “fancy enough”; designers can help transform even a “modest” home  Designers are expensive and drive-up costs; their 4 job is to set a realistic budget and stay within in  The design won’t be “me”; your home is all about 5 you and good designers bring this out

REMODELS Permit Activity

Rolling Last 12 Months (YoY%)

 Elmhurst homes are often added to and rehabbed given a lack of open lots

Addition Permits Issued Interior Remodel Permits Issued

 Addition and remodel activity is more stable generally than new builds  Remodels have returned to levels from 2015

200

 Additions increasing meaningfully while remodels trending lower

Last 6 Months (YoY%)

100

'20 ‘21

'20

'19

'18

'17

Addition Permits Issued Interior Remodel Permits Issued

47 (+42%)

'16

'21

'15

'20

'14

'19

'13

'18

'12

'11

'10

75 50

126 (-14%)

'09

100

150

Contributed By:

LOAN PROCESSES John Noldan

Perfecting the Home Purchase Process

Mortgage Application

Home Shopping

Obtain pre-approval letter and pick a loan program. After receiving your loan estimate, provide: - 2 months paystubs - 2 months asset statements - 2 years tax returns - Verification of current employment

Begin shopping for your home. Keep in mind that during the pre-approval process taxes, assessments and insurance costs are estimated. If you find a home with costs exceeding your assumed liability, make sure to contact your mortgage professional

You’ll likely need to provide more, but this is a great start

Contract Execution Submitting the below will ensure a smoother loan process: - Executed contract - Earnest money - Updated income and asset info - Other documents requested Your mortgage professional will order the appraisal, property title, tax transcripts and other reports

Conditional Approval Once your loan is submitted and underwritten, you’ll get a conditional approval. This is subject to items an underwriter needs to clear your loan to close. Document requests can range from an updated pay stub to a letter from your CPA. Every loan is different, so requested documents will vary

Closing At least 3 days before closing, you’ll receive, review, sign and return a closing disclosure. Once cleared, your mortgage professional will: - Confirm your closing date and time - Prepare your package - Confirm all fees - Send file to the title company Close your loan. Receive your keys. Celebrate! 18

CLOSING TERMS

Contributed By:

Understanding Key Real Estate Terms

Settlement Statement

A breakdown of dollar figures (credits and debits) affecting the transaction

Bill of Sale

Agreement for the transfer of personal property, as agreed upon per the contract

Mortgage

Agreement by which the lender provides financing in exchange for a security interest to insure interest payment

Affidavit of Title

Seller’s promise that he / she has not caused the property to become the subject of a third-party lien as of the title search effective date

Note

Warranty Deed

Two-party negotiable instrument which encompasses a promise to pay back the loan amount within an agreed-upon term

Recorded document evidencing to the public that you have an ownership interest in the property

Title Commitment

Survey

Insurance against loss or damage from defects or failure of title to a parcel or realty, or from the enforcement of liens against it

Establishes the location of real property boundaries, contours, easements, and natural or human-made features 19

HOME INVENTORY By Price Range

Mar. Quarter End (YoY%)

 Available homes have declined significantly with limited new listings  Inventory is particularly limited under $400K and from $700K – $1M  Home inventory remains at 14+ year lows

<$400K

$400K – $699K

$700K – $999K

$1M+

200

 Scarce inventory expected to continue driving “seller’s market” conditions 150

Mar. Trends (Relative%)

26%

16%

'18 '19 <$400K $700K – $999K

'20 '21 $400K – $699K $1M+

'21

24%

32 (-54%) 24 (-51%) 13 (-78%) 12 (-75%) '20

26%

'19

40%

'18

31%

'17

36%

'16

27%

'15

15%

'14

21%

'13

27%

'12

30%

'11

25%

22%

'10

50%

17% 24%

20%

'09

75%

100

'08

100%

By Submarket

Mar. Quarter End (YoY%)

 Home inventory is meaningfully lower with all submarkets down ~55% – 75%  Central submarkets and Southeast showed the steepest declines  Relative home inventory in the Southwest has moved higher with larger declines in other areas

North

Central West

Southwest

Southeast

Central East

125

100

North Southwest

'19 '20 Central West Southeast

'21 Central East

'21

'18

21%

'20

'19

22%

23 (-54%) 15 (-64%) 12 (-75%) 12 (-70%) 10 (-71%) '18

15% 22%

17% 17% 21%

'17

25%

22% 19% 20%

'16

21%

'15

31%

'14

50%

'13

32%

14%

'12

16% 23%

'11

14% 23%

'10

75%

12% 19%

'09

100%

'08

Mar. Trends (Relative%)

CONTRACT TIME By Price Range

Rolling Last 12 Months (YoY%)

 Days between listing date and contract signing have been low (mostly less than a month) for several years  Homes priced $400K – $1M showed ~75% contract time declines  Expect contract times to remain short given limited inventory and more demand

<$400K

$400K – $699K

$700K – $999K

$1M+

225

150

-74%

$700K - $999K

-76%

$1M+

-19%

40 (+29%) 17 (-33%) 15 (-53%) 14 (-11%) '20 '21

'19

$400K - $699K

'17 '18

-12%

'16

'14 '15

'13

<$400K

'12

'11

'20

'10

'21

'09

Price Range

'08

Jan. – Mar. (YoY%)

By Submarket

Rolling Last 12 Months (YoY%)

 Contract time was around 3 weeks or less across most submarkets, representing large YoY declines  Elmhurst market moving extremely fast to contract on new listings  Homes on the market for a month or longer could be overpriced or have other factors impacting time / interest

North

Central West

Southwest

Southeast

Central East

100

Jan. – Mar. (YoY%) 50 '20

North

-48%

Central West

-36%

Central East

-39%

Southwest

-16%

Southeast

-55%

18 (+38%) 17 (-29%) 16 (-38%) 15 (-42%) 12 (-57%)

'13 '14 '15 '16 '17 '18 '19 '20 '21

'21

'08 '09 '10 '11 '12

Submarket

PRICE DISCOUNTS By Price Range

Rolling Last 12 Months (YoY%)

 Sales closed at 96% – 98% of original list price for Q1 based on continued strong buyer competition  Homes priced $400K – $1M saw very low discounts to asking price for the quarter  Price discounts expected to remain narrow given limited home availability

<$400K

$400K – $699K

$700K – $999K

$1M+

100% 98%(0%) 97% (+1%) 96% (+2%) 96% (0%)

95%

<$400K

96%

94%

$400K - $699K

98%

94%

$700K - $999K

98%

97%

$1M+

97%

98%

-1%

90%

85%

'18 '19 '20 '21

'20

'14 '15 '16 '17

'21

'13

Price Range

'08 '09 '10 '11 '12

Jan. – Mar. (YoY%)

By Submarket

Rolling Last 12 Months (YoY%)

 Price discounts have been mostly consistent across submarkets  Limited differences reflect appeal of Elmhurst overall as well as each submarket  Discounts tightened across submarkets

North

Central West

Southwest

Southeast

Central East

100%

 Buyers and sellers meeting at 2% – 4% or less discount to original asking price

97% (+1%) 97% (+1%) 97% (+1%) 97% (+1%) 96% (-1%)

95%

97%

95%

Southwest

96%

94%

Southeast

97%

96%

85%

'21

Central East

'20

'19

96%

'18

97%

'17

Central West

'16

'15

94%

'14

97%

'13

North

90%

'12

'11

'20

'10

'21

'09

Submarket

'08

Jan. – Mar. (YoY%)

PRICE PER SQ. FT. By Price Range

Rolling Last 12 Months (YoY%)

 Price per sq. ft. trend was higher across all price ranges for the quarter (except $1M+ which was mostly flat)  Middle of the market saw the largest increases in pricing with strong competition  Homes from $400K – $700K set record levels  Pricing expected to continue moving higher based on limited supply

<$400K

$400K – $699K

$700K – $999K

$1M+

$350

$308 (+3%)

$300

Jan. – Mar. (YoY%)

$249 (+3%) $241 (+2%) $228 (+3%)

$250 '20

<$400K

$230

$225

$400K - $699K

$257

$226

14%

$700K - $999K

$239

$223

$1M+

$309

$313

-1%

$200

$150

'11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21

'21

'08 '09 '10

Price Range

By Submarket

Rolling Last 12 Months (YoY%)

 Most submarkets saw higher prices for the quarter; Central West and Southeast experienced declines (but Southeast still shows the largest 12-month increase)  Southwest saw a significant 20%+ increase  North Elmhurst remains on the lower end of price per sq. ft. and has been relatively stable the past couple years

North

Central West

Southwest

Southeast

Central East

$300 $264 (+5%) $262 (+2%) $251 (+4%) $249 (+6%)

$250

Jan. – Mar. (YoY%)

$218 (-1%)

$265

$239

11%

Southwest

$284

$233

22%

Southeast

$260

$290

-10%

$150

'21

Central East

'19 '20

-3%

'18

$256

'17

$248

'16

Central West

'15

'14

$206

'13

$216

'12

North

$200

'11

'10

'20

'09

'21

'08

Submarket

CLOSED SALE PRICES By Submarket  Sale prices were mostly higher in Q1 and during the last 12 months

Rolling Last 12 Months (YoY%)

 Central West saw lower prices due to smaller houses and decreasing per sq. ft. value  Southeast saw much higher prices despite lower price per sq. ft. due to larger homes

$700K

 Limited homes available and new / updated homes expected to push prices higher

$600K

North

Central West

Southwest

Southeast

Central East

$500K

Jan. – Mar. (YoY%)

$400K '21

'20

North

$455K

$365K

25%

Central West

$399K

$525K

-24%

Central East

$555K

$450K

23%

Southwest

$495K

$435K

14%

Southeast

$800K

$435K

84%

$381 K (+6%)

$300K $200K $100K

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21

Submarket

$590K (+15%) $558 K (+4%) $535 K (+10%) $508 K (+9%)

COMPARING THE SUBURBS Analyzing Western Suburb Markets Suburb

Median Price

Q1 YoY%

Price / Sq. Ft.

Q1 YoY% Contract Time Q1 YoY%

Clarendon Hills

$550K

$255

-72%

Downers Grove

$400K

11%

$204

-66%

Elmhurst

$465K

$244

-46%

Glen Ellyn

$455K

15%

$216

12%

-47%

Hinsdale

$889K

-9%

$272

12%

-34%

La Grange

$565K

$247

13%

-52%

Lombard

$315K

13%

$185

-38%

Oak Brook

$780K

$203

11%

-36%

Western Springs

$670K

$275

15%

-47%

Wheaton

$400K

$202

10%

-54%

SEEN AROUND ELMHURST Our Community Involvement in Q1 2021

OUR CONTRIBUTORS Special Thanks to Our Contributors

John Noldan EVP, Mortgage Lending

Themis Katris Managing Partner

630.290.6251 jnoldan@rate.com @johnnoldan

708.351.1199 tk@katrislaw.com @themi_the_closer

NMLS License #2611; NMLS #193680

Courtney Wyszynski Manager

Michelle Polay Owner & Lead Designer

630.832.7161 elmhurst@phillipsflowers.com

630.833.2331 michelle@polayinteriors.com @polayinteriors 31

www.compass.com

Compass is a licensed real estate broker and abides by federal, state and local equal housing opportunity laws. All material presented herein is intended for informational purposes only, is compiled from sources deemed reliable but is subject to errors, omissions, and changes without notice. Sources include Midwest Real Estate Data LLC and the Elmhurst Community Development department. This is not intended to solicit property already listed.

Elmhurst Office 103 Haven Road Elmhurst, IL 60126 630.750.9551 kelly.stetler@compass.com www.kellystetlerrealestate.com