Sales Prices Soar In Suburbs Amid Low Inventory

From left: Compass' Chris Lukins and @properties' Laura Fitzpatrick (Compass, @properties) — From left: Compass’ Chris Lukins and @properties’ Laura Fitzpatrick (Compass, @properties)

Homebuyers in some Chicago suburbs are paying well beyond asking prices to win bidding wars as low inventory defines the market.

In all six counties in the Chicago metro area, the average sale price in May was at least 100 percent of the ask, Crain’s reported, citing research by Redfin.

In suburbs such as Kenilworth, Calumet Park and Glencoe, buyers paid 109, 108 and 106 percent of the asking prices, respectively. Buyers paid 104 percent of the initial price tag in Clarendon Hills, Lincolnwood, Robbins, Round Lake Beach, Summit and West Chicago, on average. And the sales prices came in at 103 percent of the ask in Winnetka and Arlington Heights, as well.

As of July 6, the average U.S. home sale exceeded the asking price for the first time since August last year, according to Redfin.

“It’s not a surprise,” Compass agent Chris Lukins told the outlet. “Inventory is so incredibly low that (buyers) have to do it.”

There’s exceptions to the trend of sales prices exceeding asks, most visibly in the highest end of the market. Several North Shore mansions that were all priced for more than $10 million when they first hit the market last year underwent massive price reductions this month, reflecting the slowdown in the number of luxury deals in the Chicago area compared to last year’s record pace.

In the lower tiers of the market, after the post-pandemic housing boom peaked around last summer, there simply weren’t that many homes to sell. With high interest rates and fears of a possible recession, many would-be buyers and sellers are waiting for credit markets to stabilize before testing the waters.

However, those who are willing to brave the market are desperate in some instances, embarking on bidding wars that were more common last year in most major cities throughout the country.

In West Chicago, a three-bedroom house sold for $362,000, or about 3.4 percent over the asking price of $350,000.

In May, a buyer paid a whopping 24 percent above the asking price for a two-bedroom ranch in Calumet Park, equating to a $124,000 sale. And a five-bedroom house in Kenilworth sold for $926,250, or about 16 percent over the asking price of $800,000.

“It’s a function of demand,” @properties agent Laura Fitzpatrick told the outlet. “I’d be more surprised to see something going for under the asking price.”

—Quinn Donoghue