Price Reductions on the Rise!
Price reductions are on the rise! This may sound alarming but it is part of the seasonality of real estate. With the average home sale price on its way down with the start of Fall and that continuing until Spring, buyers are not likely to pay the same they were in Spring or Summer. That coupled with interest rates approaching 7%, you are seeing buyers decide to sit on the sidelines or get more aggressive in negotiating.
Price reductions in Schaumburg are at 48%. That means that 48% of sellers that are listed are deciding to reduce their price while on the market. Last year it was 47% so you can see it is not something that is unusual but more so just part of what you see this time of year.
In Crystal Lake, the number of sellers having to reduce their price is 52% as compared to last year’s 46%. If you want to know a specific town, just email me and I’ll send you the report.
We are seeing a material slow down in showing activity with these higher interest rates (they have risen over 1% in the last 30 days from 5.5% to 6.75%). We will likely see a sizeable amount of sellers decide to take their home off the market this fall and relist in Spring when they feel the market will be better. The question is, will it be better? We will see.