Park Ridge Single Family Housing Market

Park Ridge Home valuesThere has been a lot of discussion in the national news about a cooling housing market.  As a real estate appraiser with my office in Park Ridge Illinois, I’m providing a little insight into how we can dig deeper into the local market to get an idea of which direction home prices may be headed in the near term.   I looked at several different metrics for single family homes in Park Ridge (charts attached are interactive).

 film Sandy Wexler 2017

 film Sandy Wexler 2017

Year-Over-Year Median Sales Price (Rolling 12 month average) – As you can see below the trend is still headed higher (12.6% increase year-over-year)

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 film Sandy Wexler 2017

Months supply of inventory – Supply is down to 4.1 months of inventory (down 13.6% year-over-year)

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Average Market Time – The average time it takes to sell a house is significantly less (down 41% year-over-year)

 film Sandy Wexler 2017

 film Sandy Wexler 2017

List to Sales Price Ratio – The amount the home sells for vs. what it was most recently listed for is also improving (approximately 96%)

 film Sandy Wexler 2017

 film Sandy Wexler 2017

 film Sandy Wexler 2017

Overall, these are all positive signs, but they are statistics that are in the “rear view mirror”.  As I analyze the market to help homeowners determine an appropriate  listing price for their home, (click here for more info on that process) I analyze forward looking indicators in an effort to be aware of what may be in store for the market.

After noting the current median sales price of $394,000 and average sales price of $450,000, I compared those two data points to a more forward looking data point, pending sales.  The current median list price of the 82 detached homes currently under contract is $439,000 and the average is $498,000.  Those are a combined average of 11% higher than what has sold over the last 12 months.  As we know with the exception of a few hot markets, homes very seldom sell at list price.  Over the last 12 months, the list to sales price ratio is approximately 96% (see chart above).  Therefore, once the 4% is removed from the pending sale to anticipate the final sales price, there is still  a projected increase of 6.6% over the current 12 month sales data.

In summary, while the overall rate of increase in sales prices in Park Ridge appear to be slowing, the trend appears to be still pointing up in the near term.  The majority of these pending sales should close in the next 30-60 days, so it looks like Park Ridge should have some much needed momentum heading into the seasonally slower fall and winter months.   For more Park Ridge charts check out our Park Ridge Page.  If you have any questions, please feel free to call us anytime at (847) 863-5776.

 film Sandy Wexler 2017

What You Need To Know About Your Divorce Appraisal

For many couples, the marital residence is the largest asset obtained during the marriage.  Whether you or your spouse wishes to retain the marital residence after the divorce, it is important that an accurate value is obtained for purposes of property division.  There are typically two options regarding the home.

  1. The property can be sold and the proceeds divided.
  2. If either party wants to remain in the home, they can pay a settlement to their spouse.

In either case, an appraisal is needed.  In scenario #1, an appraisal should be obtained to help determine a listing price in an effort to limit the time the house will be listed for sale and maximize the selling price.  In scenario #2, the judge will not make a ruling on the settlement or division of property without an appraisal by a certified real estate appraiser.  As to who is responsible for the appraisal fee remains at the discretion of an agreement between both parties or court ordered by the judge.

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Most Common FHA Real Estate Appraisal Repair Items

It can be very frustrating for a homeowner or real estate agent when you get feedback from the lender that there are certain items that must be repaired before closing.  That’s why it is important be aware of minimum FHA appraisal standards before a real estate appraiser visits your home. The following are the most common repairs I encounter in the Chicago area for which you should be prepared.  Many of these could be corrected prior to the appraisal inspection for relatively little time and cost.   This will insure that additional inspections are not required and prevent any re-inspection related delays.

  1. Chipped/Peeling Paint: As per FHA, any chipped or peeling paint in homes built prior to 1978 must be corrected.  That means the defective paint must be scraped, sanded and repainted to comply.  Also, all of the paint chips must be picked up off the ground and disposed of properly.  With all of the Cape Cod, Bungalow style homes in the Chicago area, this is one of the issue I come across most.  87%  of homes built prior to 1940 contain Lead-Based Paint.  See the this link to the EPA website for more information on Lead-Based Paint.

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