Barrington market time plummets as median sale price rises 10%

September 2013: Market Stats for the Savvy Consumer

Key indicators in the Barrington-area real estate market were soft during September as overall volume fell and properties under contract also declined, signaling the start of the annual end-of-year slow down. However, there was significant activity in higher priced properties with new listings outpacing sold and under contract homes. Market time fell once again showing that well-priced real estate attracts buyers.

MARKET SNAPSHOT

Median sales price fell 1% year over year though detached housing gained 10%

Market time declined to 107 days, down 47% since last September

Overall volume of sold properties fell 8% to 55, down from 60 a year ago

New listings dropped at the low end of pricing but gained in all other price ranges

Inventory has stabilized at 8.5 months

Here is the story behind the headlines:

MEDIAN SALE PRICE: The median sales price for homes in the Barrington area declined 1% year over year to $387,500. However, the predominant sales category of detached single family homes rose 10% from $442,000 to $486,250. This shows the price rebound is still in its infancy, attempting to gain momentum.

CLOSED SALES:  Closed sales are down 8% to 55 in a year-over-year comparison, and down from 84 the previous month.  Most sales types, price ranges and property types followed this pattern. The only area of real estate activity breaking this trend was attached homes selling below $345,000.

MARKET TIME: Market time – the number of days from listing to contract date — has decreased yet again to 107 days from 204 days in September 2012. Attached dwellings are selling on average in 113 days and detached in 105 days. This is a 47% drop from a year ago and a decline of 67% from 325 days, recorded during the stagnant market of 2010.

UNDER CONTRACT:  The market slowed in September as 51 properties went under contract, down 12% year over year. September also was lower than the 60 contracts the previous month and from a high of 100 last April. The biggest fall off is in properties listed at $344,999 and below, while the biggest jump was found in the $849,900 and above price range.

HOMES FOR SALE: There were 498 properties on the market in Barrington as of September 30th, a steady uptick since January 2013. The most prevalent type of real estate available is the traditional sale of a 4-bedroom single family detached home, listed above $549,000.

NEW HOME LISTINGS: September witnessed home owners listing their properties for a final push in 2013, realizing that the real estate market has passed its bottom and the sales environment is healthy. There were 107 properties listed, up 35%. The only soft category was in homes priced below $345,000. In fact, 38 homes priced above $849,900 were added to market inventory, with a median list price of $1,111,111.

INVENTORY: Inventory for the total Barrington-area real estate market stands at 8.5 month’s supply. Inventory figures have remained greater than 8 months since February 2013, showing that the rapid depletion of available properties has leveled out. As we’ve reported previously here is the standard definition of a buyer’s vs. a seller’s market: buyers are favored at 7+ months and homes continue to see downward pressure on pricing. At 5-6 months the market is “balanced” where both buyers and sellers have equal strength. Inventory at 4 months or less favors the home seller, as buyers scramble to purchase the few properties that are on the market. In this scenario home prices usually appreciate.

 Katie Howard is Marketing Director with Prudential Visions Realty in Barrington. Whether you are buying, selling, investing, relocating or renting, Prudential Visions is ready to help with all your real estate needs. Visit us at http://besthomebrokers.com