During the most recent 12 months (ending August 2016) the number of homes sold in Deerfield was about the same as in the prior 12 months - in fact, only one more home sold in the most recent 12 months than in the prior 12 months. However, upon closer look, there are some interesting trends in Deerfield.
First, while the total number of homes sold was relatively constant, I noticed that the number of homes that sold for OVER $450,000 decreased by 9%. At the same time the number of homes that sold for less, increased by over 13%.
Meanwhile, the number of homes available for sale in Deerfield during the past 12 months increased by over 20% during the prior 12 months! Again, this varies within price range. Under $450,000 the number of homes available was exactly the same as in the prior 12 months. The rest of the market saw a dramatic increase of over 28% more homes available for sale than in the prior 12 months.
The average number of days that a Deerfield home was on the market increased from 99 days to 115 during the most recent 12 months. Again, the story is quite a bit different by price range:
- Under $250,000 days on market decreased from 105 to 95
- $250,000 - $449,999 days on market was about the same at 99 - 100 days
- $450,000 - $649,000 the average days on market from 81 to 109 days
- Homes sold for $650,000 and above to 151 days on average to sell, versus 120 days in the prior 12 months.
The Deerfield market as a whole is experiencing a buyer's market. This means that the supply of homes for sale EXCEEDS the demand. When this type of situation occurs for an extended period of time, prices tend to decline, until the market balances out.
However, when we look at this by price range, again, then trends are different. Homes selling for UNDER $450,000 are experiencing a sellers market, with demand exceeding supply. Homes are selling quickly and in many cases with multiple offers. For the middle tier, home prices between $450,000 and $650,000 the market is relatively balanced - supply is similar to demand. Homes priced over $650,000 are showing a dramatic buyers market with more than 13 months worth of inventory! (Note: I can look at this in more detail by even smaller price groupings within the high end of the market - just call if you are interested)!
The downward pressure on prices that is usually associated with a buyers market is most likely occurring, or going to occur, at the higher end of the market. Also, the continued construction of new homes in Deerfield on the high end of the market, will increase the downward pricing pressure for existing homes in the same price range.
Why? This is all about demographics. There are more baby boomers selling their homes now, and there are not as many younger buyers (millennials and Gen Xers) replacing the baby boomers - some are staying in the city, some are still renting, and some can't afford the higher priced homes.
If you are ever curious about the price of a property for sale anywhere in the Chicago area you can use my new app for your phone. Go to www.karpsearch.com on your phone. Then click on the link to go to your app store (both android and iPhone systems are supported). It is easy to use for a one-time look, and you can even set up and save searches – you need to create a username and password if you are going to save your search.
Or, if you just want to see what is on the market in Deerfield, I have two permanent searches that are updated daily. You can click on these links any time to see the full details on homes or condos/town homes for sale in Deerfield:
Thank you for reading!!