In Q2 2014, buyers in the Willows, Suburban Park and Flood Park neighborhoods were relieved to see more homes hit the market after experiencing the lowest amount of housing inventory in the past three years during Q1 2014. The pent up demand resulted in record sales for homes in this area with 4+ offers per property through the end of May. Losing bidders quickly learned their lesson and immediately moved on to the next listing and improved upon their prior offers.
As a result, valuations in these neighborhoods continued to march upwards-over 30% from last year, with the median sale price at $1,655,000 and the average price/square foot at over $1,100.
This frantic pace pulled back during the second half of June, likely due to a combination of buyers digesting the new valuations and the start of summer vacations. We experienced a similar lull last summer, late June through July, followed by a resurgence of buyer activity in August and September. We expect similar activity this fall as we know buyers are still in the market and relocation activity is picking up.
Speaking of relocation activity, we have been hearing from relocating renters that they are frustrated with the rental offerings and pricing in their desired neighborhoods (specifically the Willows), and they are now considering buying instead of renting.
Despite the summertime lull, fundamentals are still strong and valuations are holding. The next six months should still be a seller’s market and a great time to list and sell a home.