Homes for sale in the Barrington area starts upward trend as median sale price climbs 7.7%

Barrington-area real estate witnessed another strong month as the number of homes for sale continued the positive trend which glimmered several months ago. This was another sign of the housing recovery as sellers are getting off the sidelines as they see the median sale price for homes continuing month-over-month increases. Meanwhile, mortgage rates continue to rise.

MARKET SNAPSHOT

• Median sales price rose 7.7% year over year
• The number of new listings in the predominant sale category of homes has doubled year over year
• Under contract and closed sales continue solid gains established this year
• Average mortgage rates have increased for a 30-year fixed loan from 3.4% in April to 4.5% in August

Here is the story behind the headlines:

MEDIAN SALE PRICE: The median sales price for homes in the Barrington area rose 7.7% year over year to $452,500, though slightly down from the previous month. However, the predominant sales category is the traditional sale (as opposed to short sales and foreclosures or REO) of detached single family homes. This category rose 11.6% from last August to $542,000.

CLOSED SALES:  Closed sales are up 21.7% to 84 for the month, continuing the strong showing in 2013. Sales are especially strong in year-over-year comparisons in: both attached and detached sales, and in the lower price range below $344,999 and in the higher end of $549,900 to $849,899. Distressed properties were flat for the period, showing no increased buyer interest. In addition, there was no new construction closed during the month.

PERCENT ORIGINAL LIST PRICE: As market time decreased, Percent of Original List Price came in at a healthy 93.2%.This measure is up from 84.7% two years ago, when many sellers received low-ball offers from buyers who assumed they were desperate to sell.

Both these measures reflect sellers who are more realistic about the value of their property and buyers who are coping with a shrinking inventory.

UNDER CONTRACT:  Properties under contract continued the positive momentum in Barrington real estate as 62 homes went under contract during the month. The 12-month rolling average shows strong positive trends as positive results have now overtaken the negative showings of 2012. There are solid gains in all price points below $849,900.

HOMES FOR SALE: There has been a steady upward trend in the number of homes for sale since January 2013. While home listing trends are still in negative territory compared to one year ago, we do see a positive trend taking hold.

NEW HOME LISTINGS: The predominant category of homes sold in Barrington is the traditional sale of detached single family homes. The number of new listings in this category has doubled year over year from 45 to 90 homes. At the same time, distressed listings are down: there were 22 closed or under contract during the month, and only 7 new listings. In fact, 23% of the July distressed inventory was sold during the month.

INVENTORY: Inventory for the total Barrington-area real estate market stands at 8.1 month’s supply. However, inventory is being rapidly depleted in two price ranges: below $344,900 (4.7 month’s supply) and $345,000 - $549,899 (5.2 month’s supply). 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 at Prudential Visions Realty in Barrington. Whether you are buying, selling, investing, renting or relocating, Prudential Visions can help with all your real estate needs. Visit us at: http://besthomebrokers.com/