Now that the 3rd quarter is in the books for 2018, we can see that the overall numbers for Elmhurst continue to be strong. Trends are similar to the 2018 first and second quarter reports.
The average sales price in Elmhurst is up 6.7% from this time last year.
The market time —days on market from list date to contract date—remained steady in the low-40s.
The Impact of an Increase in Inventory
One interesting trend is that monthly inventory crept up to 4.2 months of inventory over the last 3 months. This number is up from 3.9 months in June. While an increase in inventory might seem to be a negative, many economists have pointed towards low inventory as a reason for buyers not to enter a particular market. Since 2014, Elmhurst inventory levels have remained low, between the 4-5 month mark. With fewer homes on the market, potential “step-up” buyers are less likely to put their house on the market, which continues to stagnate inventory. With a steady increase in inventory, or options for buyers, this could possibly open up the market to more buyers. Of course, if monthly inventory rises too fast, that’s an indicator that fewer buyers are entering the market for reasons other than inventory.
Keeping an Eye on Rising Interest Rates
One of those reasons could be rising interest rates. We’ll be watching the effects of the Federal Reserve’s move to increase interest rates on the local and national markets. Small but consistent increases like these can have one of two effects on real estate.
- Scare off would-be buyers from entering the market. Instead those buyers could chose to stay in their existing, more affordable home with lower rates or continue to rent.
- Push buyers into the market for fear that more rate increases are ahead.
The Fed has indicated that rates will continue to rise in small increments. The outcome of these increases remains to be seen. We’ll continue to monitor and communicate interest rates, average sales price, monthly inventory and market time in the coming months.
Overall the Elmhurst market is healthy with increasing sales price and high demand. Be sure to read our market update this January for a wrap up on the 2018 Elmhurst housing market.
To learn more about the impact of rising inventory and interest rates on you and your family, contact an L.W. Reedy agent today.
Data provided via Midwest Real Estate Data (MRED). Data deemed reliable but not guaranteed. InfoSparks© 2018 ShowingTime.