Spring is finally here, and for many people, that means homebuying season! While we’re firm believers that every season is right for homebuying and selling, there’s something about the spring that really does kick the moving spirit into high gear. If you’re starting your search but aren’t finding the right listings, keep reading.
The Current Market
As we get out of the winter slowdown, experts are predicting median prices slightly lower than last year’s as we see the market normal out. However, as prices get a little more affordable, competition is still going to exist as we’re still facing an inventory shortage. According to recent data, in January 2023 there were 35,804 homes for sale in Illinois, a decrease of 2.9% year over year. The average month of supply is four months, up one year over year. Combine this with higher interest rates (still sitting in the 6% range) and what you get is a competitive market of qualified buyers.
What exactly does this mean? Unlike previous years when it seemed anyone could buy a house, the more competitive prices are giving sellers fewer potential buyers (which is good for prices), but the ones they’re getting are great quality (which is good for sellers).
Overall, it’s not a bad market to be entering, but it is a tricky one to be going alone. While we love a DIY moment as much as the next person, having a real estate agent actually gives you an edge and insight into properties that you’re not going to find on sites like Trulia or Zillow thanks to private and pocket listings.
Private and Pocket Listings
According to the National Association of Realtors (NAR), 47% of recent buyers’ first step in the homebuying journey was to look online at properties for sale. This is a great way to learn more about what location you want to be in, what type of homes you like and what amenities are in and out of your budget. But if you’re having a hard time finding homes that check all of the boxes (price, location, etc.), it’s probably not you, it’s the listings you’re seeing.The real estate world has “pocket listings” and “private listings” that regular consumers (you) can’t see because they’re not on an MLS (Mulitple Listing Service) yet. An MLS is a platform that real estate agents and brokers use to share information about properties for sale and basically always require a real estate license to access. They contain public, pocket and private listings. Let’s break it down.
Public listings: otherwise known as real estate listings, these are homes for sale that are listed on an MLS that you can see on sites like Trulia or Zillow.
Pocket listings: homes for sale that are not yet listed in the MLS, only agents can track them.
Private listings: exist in the MLS but aren’t sent to public sites like Zillow, so they’re also only visible to agents.
If it feels like you’re searching endlessly but not finding the right thing for you, it could be that inventory is getting snapped up before you even get the chance to see it. A real estate agent, however, can make your search easier (thanks in part due to their access to these listings). Last year alone, 86% of buyers purchased their home through a real estate agent or broker, and that same percentage found their agent to be a “very or somewhat useful information source.” The cherry on top? Almost 90% of buyers would use their agent again or recommend them to others, too.
If springtime is the start of your homebuying journey, don’t go at it alone. Baird & Warner agents are your local experts to make the process easier. Whether you’re a first-time buyer or just looking for something new, we can help you find secret listings, find the right neighborhood for you and walk you through the entire process. Best of all, we’re here for you long after the closing papers are signed. Give us a call today.