Lombard Real Estate Guide (Q2 2022) by Kelly Stetler Real Estate

Q2 2022

LOMBARD

LOCAL REAL ESTATE GUIDE

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The Lombard real estate market in Q2 was remarkable in many ways. As we expected, buyers moved aggressively to beat interest rate increases and pushed prices much higher on an already depleted inventory of available homes. During the quarter, single family home prices per sq. ft. increased an amazing 15%+ year-over-year (a rate of increase only seen in during the last 15 years in late 2013 / early 2014 and this year). At this point you may be wondering if this market will ever balance (at least some…). We believe that has started in the second half of this year; however, this does not mean sale prices will decline. Absent a broader economic event, we see prices continuing to increase at a lower rate. We also anticipate fewer multiple bid situations, some negotiability and longer market times as the market moderates. For the cover we chose an image of Lilacia Park. We loved seeing (and smelling!) the lilacs in full bloom at the Mutt Strutt. All my best,

630.750.9551 kelly.stetler@compass.com www.kellystetlerrealestate.com 2

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

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

(North Ave. to St. Charles Rd. and Rte. 53 to Grace Ave.)

WEST

EAST

(St. Charles Rd. to Roosevelt Rd. and Hwy. 355 to Main St.)

(North Ave. to Roosevelt Rd. and Grace Ave. / Fairview Ave. to Villa Park)

CENTRAL (St. Charles Rd. to Roosevelt Rd. and Main St. to Grace Ave. / Fairview Ave.

SOUTH (South of Roosevelt Rd. to Butterfield Rd.)

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

MARKET SUMMARY “Seller’s Market” Remains with Higher Prices as Demand Normalizes

Lower Activity

Fewer Available Homes

New Home Listings (Q2)

Home Inventory (June)

23%

Contracted Homes (Q2)

“Seller’s market” with 15+ year low of available homes this time of year

31%

Closed Homes (Q2)

Short Market Times

List to Contract Days (Q2)

Extremely fast with most homes under contract in less than a week

No Price Discounts

Sale Price Discounts (Q2)

No current discounts to asking price; houses selling at or above full price

Higher Sale Prices

Sale Price / Price Per Sq. Ft. (Q2)

31%

Much higher prices across submarkets and price ranges 4

TOP LOMBARD SUPPORTER Our Sponsored Lombard Events in Q3

Movies:

Wednesday, July 20 (Sunset): The Croods: A New Age (PG) Wednesday, August 3 (Sunset): Sonic the Hedgehog (PG) Concerts: Wednesday, July 13 (7pm): The Rockin’ Fenderskirts Wednesday, July 27 (6:30pm): Tropixplosion Premier Event Sponsor

Saturday, August 13 (10am – 12:30pm) Event Sponsor

Saturday, September 17 (10am – 12pm)

Saturday, October 8 (1 – 4pm)

Event Sponsor

Event Sponsor 5

NEW LISTINGS By Price Range

Rolling Last 12 Months (YoY%)

 New listings were down YoY for the quarter across price ranges  While each month declined, May was down the most at 40%+ compared to last year  Listings less than $300K continue to decrease significantly from 2015 / 2016

700

 Lower listing activity with most price ranges continuing downward trend

600

<$300K

$300K – $399K

$400K – $499K

$500K+

500

Apr. – Jun. (YoY%)

400

'22

'21

<$300K

-39%

$300K - $399K

106

127

-17%

$400K - $499K

-22%

$500K+

-8%

200

204 (-40%)

100

116 (+15%) 100 (+1%)

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22

Price Range

323 (-15%)

300

By Submarket

Rolling Last 12 Months (YoY%)

 Q2 continued to show lower listing activity across submarkets  East Lombard experienced a significant decline of 45% for the quarter  Light quarter pushed all submarkets lower over the last 12 months

North

West

Central

East

South

300

200

Submarket

'22

'21

North

-12%

West

-11%

Central

-27%

East

-45%

South

-10%

163 (-23%) 147 (-8%) 141 (-8%) 122 (-29%) 99 (-21%)

100

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22

Apr. – Jun. (YoY%)

CONTRACTED HOMES By Price Range

Rolling Last 12 Months (YoY%)

 Contracted homes were down 30% YoY driven mostly by homes priced below $400K  Each of the months for the quarter was lower, particularly May (consistent with listings)  Declining contracted homes are trending consistently with fewer new listings

<$300K

$300K – $399K

$400K – $499K

$500K+

450 375 300

Price Range

'22

'21

<$300K

-49%

$300K - $399K

-25%

$400K - $499K

-19%

$500K+

225

237 (-19%)

150

164 (-42%)

79 (+14%) 53 (+4%)

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22

Apr. – Jun. (YoY%)

By Submarket

Rolling Last 12 Months (YoY%)

 Contracted activity was lower across submarkets in Q2  East and Central submarkets experienced the largest declines for the quarter  North Lombard had the lowest decline for the quarter and last 12 months

North

West

Central

East

South

200

150 123 (-25%) 109 (-13%) 97 (-12%)

Apr. – Jun. (YoY%) 100 '22

'21

North

-14%

West

-24%

Central

-57%

East

-45%

South

-29%

76 (-37%) 71 (-34%) 50

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22

Submarket

CLOSED HOME SALES By Price Range

Rolling Last 12 Months (YoY%)

 Closed homes were down 30%+ YoY driven mostly by homes priced below $400K  Closing activity continued to grow for homes priced $400K+ during the quarter and the last 12 months  Closed homes likely to continue declines with lower listings and fewer contracts

<$300K

$300K – $399K

$400K – $499K

$500K+

500

400

Apr. – Jun. (YoY%)

300 245 (-11%)

'22

'21

<$300K

-59%

$300K - $399K

103

-36%

$400K - $499K

21%

$500K+

17%

200

177 (-40%)

100

93 (+58%) 56 (+12%) '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22

Price Range

By Submarket

Rolling Last 12 Months (YoY%)

 Closed activity was lower across submarkets in Q2  Central and South submarkets were down the most for the quarter and the lowest over the last 12 months  Closed home sales trending back toward pre-pandemic levels

North

West

Central

East

South

200

150 137 (-13%)

Apr. – Jun. (YoY%)

115 (-7%) 100 (-4%) 89 (-26%) 73 (-29%)

100

'22

'21

North

-13%

West

-29%

Central

-41%

East

-29%

South

-42%

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22

Submarket

HOME INVENTORY By Price Range

Jun. Quarter End (YoY%)

 Available homes declined 5%+ overall and remain at 15+ year lows  Inventory for <$300K homes is at nearly half the mix of available homes compared to 2020  Homes priced $500K+ increased YoY

<$300K

$300K – $399K

$400K – $499K

$500K+

200

 Inventory declines moderating as “seller’s market” conditions persist 150

Jun. Trends (Relative%) 100

50%

24% 11% 27%

25%

39%

21% 14% 29%

25% 12% 23%

36%

40%

'18 '19 <$300K $400K – $499K

'20

75%

27%

30%

15%

32%

34%

26%

21%

'21 '22 $300K – $399K $500K+

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22

100%

27 (0%) 24 (+4%) 17 (-23%) 12 (-8%) 12

By Submarket

Jun. Quarter End (YoY%)

 Home inventory is meaningfully lower over the last several years  Central and South submarkets have increased YoY

North

 East Lombard has the fewest available homes, but had some of the most submarket inventory pre-pandemic

50% 25% 0% North

18% 17%

11% 18% 20%

18% 14% 24%

27%

25%

26%

24%

19%

'19

'20

'21

'22

14% 24%

'18

West

Central

East

South

18 (-5%) 17 (+21%) 14 (-18%) 13 (+63%) 10 (-23%) '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22

75%

18% 18% 19% 18%

22% 23% 18% 15% 22%

Central

Jun. Trends (Relative%) 100%

West

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 in less than one week for the quarter (extremely fast)  Expect contract times to remain short given buyer demand and limited inventory

<$300K

$300K – $399K

$400K – $499K

$500K+

225

150

Price Range

'22

'21

<$300K

$300K - $399K

25%

$400K - $499K

$500K+

-77%

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22

Apr. – Jun. (YoY%)

12 (+33%) 7 (-42%) 7 (+17%) 6 (+20%) 14

By Submarket

Rolling Last 12 Months (YoY%)

 Contract time in Q2 remained fast; high percentage increases from a very small bases (one day driving a large change)

North

 Buyers are reviewing new listings quickly  Homes on the market for two weeks or longer are likely overpriced or have other factors impacting time / interest

West

Central

East

South

100

Apr. – Jun. (YoY%) 50

'22

'21

North

-40%

West

25%

Central

East

25%

South

25%

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22

Submarket

11 (+22%) 8 (+33%) 8 (+33%) 8 (-11%) 6 (0%) 15

PRICE DISCOUNTS By Price Range

Rolling Last 12 Months (YoY%)

 Sales closed at 100%+ of original list price for Q2 as homes sold at full asking price or more  Multiple offers prevalent for properties priced fairly and in good condition  Price discounts have been limited / nonexistent and expected to remain tight

<$300K

$300K – $399K

$400K – $499K

$500K+

100%

100% (0%) 100% (+2%) 100% (+2%) 98% (0%)

95%

Apr. – Jun. (YoY%)

90%

'22

'21

<$300K

102%

100%

$300K - $399K

101%

$400K - $499K

102%

100%

$500K+

102%

98%

85%

80%

75%

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22

Price Range

By Submarket

Rolling Last 12 Months (YoY%)

 Price discounts have been mostly consistent across submarkets  Limited differences reflect appeal of Lombard overall  Very limited, if any, discounts across submarkets in Q2

North

West

Central

East

South 100% (+2%) 100% (0%) 100% (0%) 100% (+2%) 98% (-1%)

100%

 Buyers and sellers mostly meeting around original asking price 95%

Submarket

'22

'21

North

102%

101%

West

100%

Central

103%

100%

East

102%

100%

South

101%

100%

90%

85%

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22

Apr. – Jun. (YoY%)

PRICE PER SQ. FT. By Price Range

Rolling Last 12 Months (YoY%)

 Price per sq. ft. trend was significantly higher across all prices ranges in Q2  All price ranges set new records over the last 12 months  Pricing continues to be strong based on very low home inventory

<$300K

$300K – $399K

$400K – $499K

$500K+

$250

$214 (+9%) $211 (+13%) $210 (+12%) $199(+8%)

$200

Price Range

'22

'21

<$300K

$238

$192

24%

$300K - $399K

$229

$198

16%

$400K - $499K

$209

$175

19%

$500K+

$223

$199

12%

$150

$100

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22

Apr. – Jun. (YoY%)

By Submarket

Rolling Last 12 Months (YoY%)

 Submarkets saw higher prices for the quarter with all areas increasing  All submarkets set price per sq. ft. records over the last 12 months, except South (slightly higher prior to the Great Recession)  With continued strong increases in South Lombard, this region has caught up to others after trailing since 2017

North

West

Central

East

$250

$213 (+5%) $212(+4%) $211 (+10%) $207 (+6%) $205 (+15%)

$200

Submarket

'22

'21

North

$223

$217

West

$239

$196

22%

Central

$219

$209

East

$232

$192

21%

South

$214

$189

13%

$150

$100

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22

Apr. – Jun. (YoY%)

South

CLOSED SALE PRICES By Submarket  Sale prices were mostly higher during Q2 (these values are influenced by relative prices and the size of the homes sold)

Rolling Last 12 Months (YoY%) North

 West was slightly lower for the quarter, but remains up over the last 12 months  Limited homes available and many remodeled homes driving record prices

West

Central

East

$400K $350K $300K

Apr. – Jun. (YoY%)

South

$355 K (+2%) $354K (+11%) $328K (+7%) $325 K (+7%) $325 K (+10%)

$250K

'22

'21

North

$335K

$327K

West

$340K

$352K

-3%

Central

$378K

$317K

19%

East

$355K

$335K

South

$401K

$365K

10%

$200K $150K $100K

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22

Submarket

COMPASS LISTINGS Selected Compass Lombard Listings

Under Contract

592 Highway 53

19W076 18th Pl.

$750K

~4,000

6/3

$550K

~2,170

3 / 2.1

LIST PRICE

SQ. FT.

BEDS / BATHS

CAR GARAGE

LIST PRICE

SQ. FT.

BEDS / BATHS

CAR GARAGE

Under Contract

Coming Soon

1017 Shady Ln.

763 Lilac Way

$295K

~1,280

2/1

Private

~1,275

3/2

LIST PRICE

SQ. FT.

BEDS / BATHS

CAR GARAGE

LIST PRICE

SQ. FT.

BEDS / BATHS

CAR GARAGE

COMPARING HOME TYPES Analyzing Lombard Home Types

Home Type

Single Family

Town Houses

New Listings

230

Contracted Homes

148

Closed Homes

147

Home Inventory

5 days

3 days

8 days

Price Discounts

101.5%

104.2%

100.0%

Price per. Sq. Ft.

$223

$207

$158

Closed Sale Price

$369K

$284K

$164K

Contract Time

Condos

COMPARING SUBURBS Analyzing Western Suburb Markets

Suburb

Median Price

Q2 YoY%

Price / Sq. Ft.

Q2 YoY% Contract Time Q2 YoY%

Clarendon Hills

$743K

-9%

$302

22%

Downers Grove

$460K

$241

11%

-17%

Elmhurst

$626K

13%

$288

17%

-14%

Glen Ellyn

$570K

13%

$260

-33%

Hinsdale

$1,200K

$316

16%

-36%

La Grange

$625K

$282

Lombard

$369K

12%

$223

16%

Oak Brook

$960K

24%

$267

18%

-50%

Western Springs

$750K

$336

20%

-20%

Wheaton

$508K

15%

$233

0% 23

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. This is not intended to solicit property already listed.

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