Q3 2021
ELMHURST
LOCAL REAL ESTATE GUIDE
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OPENING NOTE
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As the leaves change color, temperatures fall and we move closer to Thanksgiving, our team is filled with a tremendous sense of gratitude and appreciation reflecting on 2021. Although none of us know with certainty what might happen next, we are excited and optimistic about the path ahead. At Compass, our mission is to help everyone find their place in the world. Thank you for including us on your journey. While home prices continue to climb, we see the market following typical patterns of slowing during the fall and winter months. Buyer demand remains and there are simply not enough homes available, which is likely to set up for a strong start to 2022. Many Elmhurst residents are thinking ahead and starting to plan now for a move next year. We appreciate having you as clients and neighbors. Thank you for your support and trust. May you and your loved ones experience every joy this holiday season! All my best,
630.750.9551 kelly.stetler@compass.com www.kellystetlerrealestate.com 2
WHAT’S INSIDE FEATURES 8
6
New Listings
10
Contracted & Closed
12
New Construction
20
Home Inventory
22
Contract Time
26
Price Discounts
(John Noldan, Guaranteed Rate)
28
Price Per Sq. Ft.
Power of Attorney
30
Closed Sale Prices
(Themis Katris, The Katris Law Group)
31
Comparing Home Types
Insurance Policies
34
Comparing Suburbs
Selling This Spring Getting Ready to List Your Home (Kelly Stetler, Compass Real Estate)
Window Styling
9
Delivering Style and Function (Karen Lee, Total Window Treatments)
Refinancing Considerations
13 24 25
Key Reasons to Refinance
Considering a POA for Real Estate
Coverages You May Not Know About (Matt DeCoste, Humbert Insurance Agency)
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.
4
MARKET SUMMARY “Seller’s Market” Remains During Seasonal Slowing Period Balancing Demand and Supply
New Home Listings (Q3)
1%
Recovering New Construction
New Home Permits (YTD)
73%
New build permits increasing significantly relative to slow 2020
Fewer Available Homes
Sept. Month End Inventory (YoY)
23%
“Seller’s market” with 14+ year low of available homes this time of year
Short Market Times
Original List to Contract Days (Q3)
Narrow Price Discounts
Closed Sale Price Discounts (Q3)
Tight discounts of less than 3%; houses selling at or near full price
Higher Sale Prices
Sale Price / Price Per Sq. Ft. (Q3)
Higher prices generally across submarkets and price points
Contracted / Closed Homes (Q3)
13%
Less than 2 weeks generally across submarkets and price points
5
NEW LISTINGS By Price Range
Rolling Last 12 Months (YoY%)
New listings were generally flat YoY for the quarter with homes priced <$700K increasing and $700K+ decreasing July listing activity was higher, August was flat and September was lower Listings lost some of the momentum gained during late spring / early summer
<$400K
$400K – $699K
$700K – $999K
$1M+
600 531 (+19%)
500 400
Jul. – Sept. (YoY%)
366 (+2%) 300
'21
'20
%
<$400K
113
110
3%
$400K - $699K
174
140
24%
$700K - $999K
42
71
-41%
$1M+
41
44
-7%
184 (-26%)
200
178 (+9%) 100 0
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
Price Range
6
By Submarket
Rolling Last 12 Months (YoY%)
Q3 showed mixed new listing activity across submarkets Southeast Elmhurst is down significantly over the last 12 months with another meaningful decline in Q3 North submarket was lower in Q3, but remains much higher over the last 12 months
North
Central West
Southwest
Southeast
Central East
400 328 (+18%) 300
292 (0%)
Jul. – Sept. (YoY%)
217 (0%)
200
171 (-9%)
'21
'20
%
North
92
98
-6%
Central West
48
47
2%
Central East
72
71
1%
Southwest
82
80
2%
Southeast
38
43
-12%
134 (-19%) 100
0
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
Submarket
7
Contributed By:
SELLING THIS SPRING Getting Ready to List Your Home in the Spring
Kelly Stetler
Now is the time to have exterior photos of your home taken. Don’t lose out on the opportunity to present your home at its very best with green grass and full trees instead of a foot of snow!
You’ll likely find a buyer more quickly and have a smoother sale if you finish any repairs before you put your home on the market. Use the winter months to critically look at your home and even consider engaging a home inspector (to identify potential issues)
A fresh coat of paint is a simple way to transform your home. Make sure you repair any damage, holes, cracks, etc. before starting. You will want your home to appeal to as many people as possible so it’s safer to opt for neutral tones
They call it spring cleaning for a reason! A deep clean and declutter of your home is an important step in preparing your home. You want potential buyers to imagine themselves in the space without distractions
Staging your home is another consideration. While this step doesn’t come until your home is about to hit the market, understanding what is involved near-term can allow for planning. Multiple studies show that staging a home helps sell faster and for more money 8
Contributed By:
WINDOW STYLING Delivering Style and Function with Customized Window Treatments Bay window hardware can be customized to fit any shape or style window
Customized panels with Euro pleated heading brings an elevated level of sophistication
Hardware with elbows or French returns can be tailored to maximize light
Charming cafestyle shutters let in lots of light and provide the right amount of privacy
Drapes hung high and wide make the window (and the room) appear larger and more rich
9
CONTRACTED & CLOSED By Price Range
Rolling Last 12 Months (YoY%)
Contracted & closed homes were down 13% across price ranges; largest decline at $700K – $1M for the quarter While contracts were down meaningfully in July and August YoY, September increased Contracted & closed homes have roughly matched new listings for the last 2 quarters
<$400K
$400K – $699K
$700K – $999K
$1M+
600
557 (+25%) 496 (+12%)
500 400
Jul. – Sept. (YoY%)
300
'21
'20
%
<$400K
117
131
-11%
$400K - $699K
137
153
-10%
$700K - $999K
69
89
-22%
$1M+
50
54
-7%
200
185 (+48%)
100 0
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
Price Range
269 (+5%)
10
By Submarket
Rolling Last 12 Months (YoY%)
Contracted & closed activity was lower across most submarkets in Q3 Significant declines in Southern Elmhurst (25%+ lower); Southeast submarket turned negative for the last 12 months North submarket was the only area to see a Q3 increase YoY (now up 40%+ over the last 12 months)
North
Central West
Southwest
Southeast
Central East
400
399 (+42%) 351 (+17%)
300 269 (+17%)
Jul. – Sept. (YoY%) 200 (+8%)
200
'21
'20
%
North
94
92
2%
Central West
51
56
-9%
Central East
82
87
-6%
Southwest
72
98
-27%
Southeast
37
59
-37%
153 (-4%) 100
0
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
Submarket
11
NEW CONSTRUCTION Permit Activity
Rolling Last 12 Months (YoY%)
Over 1,100 new home permits since 2010 New construction activity has recovered significantly in 2021 Highest new home and demo permit activity YTD in the last few years
New Home Permits Issued
Demo Permits Issued
160
Expecting a larger supply of new construction homes going into 2022 based on demo permits
Last 9 Months (YoY%)
120 110 (+67%) 95 (+42%)
90
64 67
78
41 44
'20 ‘21
'20
'19
'18
'17
'16
'15
0
'14
New Home Permits Issued Demo Permits Issued
'21
'13
'20
'12
'19
'11
'18
'10
40
30 0
80
'09
60
62 61
71
12
Contributed By:
REFINANCING John Noldan
Key Reasons to Consider a Refinance
When you refinance, you receive a new mortgage to pay off and replace your existing mortgage. Refinancing works just like getting a loan to buy a house, but there is less pressure to close by a certain date. There are several reasons to refinance:
Lower Interest Rate
When market rates drop, refinancing into a lower interest will reduce your monthly payment and lower total interest paid for the life of the loan
Access Home Equity
With cash-out refi rates you can access home equity if you will have at least 20% equity remaining after the transaction
Shorten Loan Term
Remove Private Mortgage Insurance (PMI)
If you refi from a 30-year to a 15-year mortgage, your monthly payment will often increase; however, your interest rate will be lower, shaving years off your mortgage with lower overall interest paid
Eliminating private mortgage insurance when you have 80% equity in your home; this could save between 0.5% – 1% of the entire loan amount on an annual basis
13
HIGHLIGHTED SALES Closed in Q2 2021 – Central West Elmhurst
Sold By: $1,230,000 SALE PRICE
98% SALE / LIST PRICE
$352 PRICE PER SQ. FT.
5 / 4.1 BEDS / BATHS
3,492 SQ. FT.
In-depth knowledge of new construction process and home specifications resulted in going under contract before breaking ground 14
Closed in Q2 2021 – Southwest Elmhurst
Sold By: $1,101,000 SALE PRICE
100%+ SALE / LIST PRICE
$246 PRICE PER SQ. FT.
5/5 BEDS / BATHS
4,477 SQ. FT.
Long-time Elmhurst residents received multiple bids above asking price the first weekend of marketing after two prior failed sale attempts 15
HIGHLIGHTED SALES Closed in Q2 2021 – Central East Elmhurst
Sold By: $720,000 SALE PRICE
97% SALE / LIST PRICE
$270 PRICE PER SQ. FT.
4 / 2.1 BEDS / BATHS
2,670 SQ. FT.
Guided long-time Elmhurst residents on pre-sale preparation to facilitate a quick and seamless sale for their move to Florida 16
Closed in Q2 2021 – Central West Elmhurst
Sold By: $535,000 SALE PRICE
99% SALE / LIST PRICE
$259 PRICE PER SQ. FT.
3 / 3.1 BEDS / BATHS
2,067 SQ. FT.
Relocating clients needed proceeds to use for down payment on a new construction home; went under contract with an all-cash deal within 24 hours 17
HIGHLIGHTED BUYS Closed in Q3 2021 – Central East Elmhurst
Bought With: $1,350,000 BUY PRICE
97% BUY / LIST PRICE
$277 PRICE PER SQ. FT.
6/5 BEDS / BATHS
4,869 SQ. FT.
Current Elmhurst residents casually looking for a larger house if ever available on specific streets; found dream home in their ideal location 18
Closed in Q3 2021 – Southwest Elmhurst
Bought With: $1,050,000 BUY PRICE
89% BUY / LIST PRICE
$267 PRICE PER SQ. FT.
4 / 4.1 BEDS / BATHS
3,930 SQ. FT.
Relocating buyers moving from Arizona relied heavily on local knowledge and expertise to execute a purchase from afar 19
HOME INVENTORY By Price Range
Sept. Quarter End (YoY%)
Available homes are stabilizing, but at much lower levels overall versus pre-pandemic Inventory is particularly limited for homes priced 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
Sept. Trends (Relative%)
'18 '19 <$400K $700K – $999K
'20 '21 $400K – $699K $1M+
0
'21
25%
'20
28%
'19
27%
37 (-31%) 34 (-15%) 15 (-57%) '18
25%
50
'17
43%
'16
34%
'15
33%
'14
33%
64 (-2%)
'13
23% 10%
'12
0%
21% 18%
'11
25%
18% 22%
'10
50%
16% 25%
'09
75%
100
'08
100%
20
By Submarket
Sept. Quarter End (YoY%)
Home inventory is meaningfully lower, but Southeast Elmhurst is actually flat YoY Central submarkets have showed the steepest declines Relative home inventory in the North has moved higher (above 2018 levels) with larger declines in other areas
North
Central West
Southwest
Southeast
Central East
125
100
'21
'20
'19
0
'18
'21 Central East
'17
'19 '20 Central West Southeast
'16
North Southwest
29%
25
'15
'18
26%
39 (-19%) 34 (-8%) 22 (0%) 21 (-51%) 19 (-41%) '14
28%
24% 18%
50
'13
0%
22% 18% 20%
16% 25% 16% 14%
'12
25%
12% 20%
'11
50%
17% 23%
'10
75%
14% 20% 20% 18%
'09
100%
75
'08
Sept. Trends (Relative%)
21
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 went under contract very fast in Q3 across all price points Expect contract times to remain short, but edge higher from very low current levels
<$400K
$400K – $699K
$700K – $999K
$1M+
225
150
Price Range
'21
'20
%
<$400K
9
10
-10%
$400K - $699K
9
16
-44%
$700K - $999K
9
19
-53%
$1M+
15
46
-67%
75
0
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
Jul. – Sept. (YoY%)
15 (-61%) 13 (-43%) 9 (-64%) 8 (-56%)
22
By Submarket
Rolling Last 12 Months (YoY%)
Contract time was less than 2 weeks across submarkets, representing continued large YoY declines Buyers are reviewing new listings immediately given fast contract times Homes on the market for 3 weeks or longer are likely overpriced or have other factors impacting time / interest
North
Central West
Southwest
Southeast
Central East
100
75
Jul. – Sept. (YoY%) 50
'21
'20
%
North
11
22
-50%
Central West
11
14
-21%
Central East
9
21
-57%
Southwest
9
14
-36%
Southeast
11
16
-31%
12 (-43%) 11 (-52%) 11 (-54%) 11 (-54%) 9 (-57%)
25
0
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
Submarket
23
Contributed By:
POWER OF ATTORNEY Considering a Real Estate Power of Attorney (POA)
Live far away from the property you own
When to Use
Important Websites
Cannot take care of your property for a certain period York Township https://www.yorktwsp.com Are unavailable (or don’t want to) sign real estate contracts and documents
Pay off any liens on the real estate Residential Assessed Value Appeal Form Organize any required maintenance / repairs Pay property taxes https://www.dupageco.org/SOA/1475/ Manage lawsuits related to the real estate Buy, sell, lease or mortgage a property Purchase property insurance
Selected Tasks to be Granted
Pay or refinance the mortgage
What is Needed
Build, reconstruct or remove structures
Buyers
Sellers
For a POA to be approved for closing, the title company and lender (if applicable) will also need to approve the POA; the lender may dictate how the POA is signed
Title company will need the original signed and notarized POA with the conveyance deed; signing and notarizing an original POA can take place at any time up to close 24
Contributed By:
INSURANCE POLICIES Insurance Coverage You May Not Know About
Underground Service Line A typical homeowners insurance policy does not provide coverage if underground service lines are damaged, which is often caused by tree roots. Underground service line coverage includes waste lines, electrical power, natural gas and water. If damaged these can be very expensive to repair
Umbrella Policy This is extra insurance coverage designed to protect from major claims and lawsuits. It provides additional liability limits above homeowners, automobile and other personal liability policies. This is very affordable and starts at a $1 million limit, but many insurers will offer up to $10 million
Matt DeCoste
Personal Property Most people know that you can schedule jewelry under your homeowners’ policy, but you can also schedule cameras, computers, musical instruments, fine arts, etc. Scheduled personal property covers items for almost anything that happens, including theft, breakage or even mysterious disappearance
New Car Coverage New-car replacement insurance, an option with some insurers, offers to replace your auto if totaled in an accident. This endorsement will stay on your policy for 3 – 5 years and pays the value of a brand-new car of the same make and model, minus the deductible
25
PRICE DISCOUNTS By Price Range
Rolling Last 12 Months (YoY%)
Sales closed at 97% – 99% of original list price for Q3 based on continued strong buyer competition While multiple offers are still happening, the summer frenzy has moderated Price discounts remain very narrow with some eventual widening expected
<$400K
$400K – $699K
$700K – $999K
$1M+
100% 99% (+2%) 98% (+2%) 97% (+1%) 97% (+1%) 95%
Price Range
'21
'20
%
<$400K
97%
98%
-1%
$400K - $699K
98%
96%
2%
$700K - $999K
98%
97%
1%
$1M+
99%
96%
4%
90%
85%
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
Jul. – Sept. (YoY%)
26
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 remain tight across submarkets
North
Central West
Southwest
Southeast
Central East
100%
Buyers and sellers mostly meeting at 1% – 3% or less discount to original price
98% (+1%) 98% (+2%) 98% (+1%) 97% (+1%) 97% (+1%)
95%
Submarket
'21
'20
%
North
98%
97%
2%
Central West
97%
98%
0%
Central East
98%
96%
1%
Southwest
98%
97%
1%
Southeast
98%
96%
2%
90%
85%
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
Jul. – Sept. (YoY%)
27
PRICE PER SQ. FT. By Price Range
Rolling Last 12 Months (YoY%)
Price per sq. ft. trend was higher above $700K and flat below $700K in Q3 Homes priced $1M+ saw the largest increases in pricing and returned to $300+ per sq. ft. Pricing continues to be strong based on low home inventory and continued buyer demand
<$400K
$400K – $699K
$700K – $999K
$1M+
$350 $312 (+4%) $300
Jul. – Sept. (YoY%) $251 (+4%) $248 (+5%) $230 (+1%)
$250
'21
'20
%
<$400K
$241
$240
0%
$400K - $699K
$246
$247
0%
$700K - $999K
$254
$241
5%
$1M+
$327
$272
20%
$200
$150
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
Price Range
28
By Submarket
Rolling Last 12 Months (YoY%)
Submarkets saw higher prices for the quarter with all areas increasing Southwest Elmhurst saw the largest price per sq. ft. increases North Elmhurst remains on the lower end of price per sq. ft. and has been relatively stable (now showing some increases)
North
Central West
Southwest
Southeast
Central East
$300 $265 (+7%) $264 (+5%) $263 (+2%) $257 (+7%)
$250
Jul. – Sept. (YoY%)
$224 (+2%)
'21
'20
%
North
$233
$219
6%
Central West
$273
$263
4%
Central East
$264
$262
1%
Southwest
$263
$240
10%
Southeast
$260
$256
2%
$200
$150
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
Submarket
29
CLOSED SALE PRICES By Submarket
Rolling Last 12 Months (YoY%)
Sale prices were mostly higher in Q3 Southwest saw flat prices due to smaller houses despite a large increase in price per sq. ft. value Southeast experienced much higher prices due to larger home sales
$700K
Limited homes available and new / updated homes expected to push prices higher
$600K
North
Central West
Southwest
Southeast
Central East
$500K
Jul. – Sept. (YoY%)
$400K
'21
'20
%
North
$405K
$360K
13%
Central West
$675K
$630K
7%
Central East
$630K
$630K
0%
Southwest
$585K
$585K
0%
Southeast
$620K
$445K
39%
$418 K (+19%)
$300K $200K $100K
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
Submarket
$650 K (+18%) $618 K (+15%) $565K (+19%) $520K (-6%)
30
COMPARING HOME TYPES Analyzing Elmhurst Home Types
Home Type
Condos
Town Houses
Single Family
New Listings
53
23
370
Contracted & Closed
61
19
374
Home Inventory
25
15
150
Contract Time
17 days
10 days
10 days
Price Discounts
97.8%
98.3%
98.2%
Price per. Sq. Ft.
$210
$252
$258
Closed Sale Price
$277K
$494K
$540K 31
SEEN AROUND ELMHURST Our Community Involvement in Q3 2021
32
JOIN US FOR SOME FUN Upcoming Elmhurst Sponsored Events in Q4 2021
Saturday, November 13 (7:00pm)
Thursday, November 25 (9:00am)
Center Stage Sponsor / Balloon Pop
Premier Sponsor / Hospitality Tent
October 13, 2021 – January 2, 2022 Elmhurst Art Museum Hole Sponsor “Timing is Everything”
December 13 – 17, 2021 (4pm)
Thursday, December 2 (5:30pm – 7:30pm) Wilder Park 33
COMPARING SUBURBS Analyzing Western Suburb Markets
Suburb
Median Price
Q3 YoY%
Price / Sq. Ft.
Q3 YoY% Contract Time Q3 YoY%
Clarendon Hills
$692K
23%
$265
11%
11
0%
Downers Grove
$433K
11%
$217
7%
9
-50%
Elmhurst
$540K
8%
$258
5%
10
-44%
Glen Ellyn
$515K
1%
$232
1%
9
-57%
Hinsdale
$1,025K
15%
$274
6%
17
-61%
La Grange
$625K
12%
$281
17%
7
-65%
Lombard
$335K
12%
$205
7%
7
-13%
Oak Brook
$833K
6%
$227
17%
17
-49%
Western Springs
$685K
2%
$286
10%
13
30%
Wheaton
$433K
10%
$213
9%
9
-40%
34
OUR CONTRIBUTORS Special Thanks to Our Elmhurst Contributors
John Noldan – EVP, Mortgage Lending Guaranteed Rate 115 W. Adelaide St, Elmhurst, IL 60126
Matt DeCoste – Insurance Agent Humbert Insurance Agency 188 W. Industrial Dr, Elmhurst, IL 60126
630.290.6251 jnoldan@rate.com @johnnoldan_guaranteedrate
630.279.8300 ext. 240 mdecoste@humbertinsurance.com
NMLS License #2611; NMLS #193680
Themis Katris – Managing Partner The Katris Law Group 257 West Ave, Elmhurst, IL 60126
Karen Lee – Owner & Certified Designer Total Window Treatments 554 Spring Rd, Elmhurst, IL 60126
708.351.1199 tk@katrislaw.com @themi_the_closer
630.530.7474 twtelmhurst@gmail.com @twtelmhurst554 35
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