Is Evanston now a balanced real estate market? Yes and no.
Real Estate experts and market analysts consider a 5-6 months supply of inventory to be a balance market with supply and demand resulting in stable and steadily, but slowly increasing prices.
What is the months supply of inventory? What does this number mean? This number tells you how many months it would take for all the current homes for sale on the market to sell, given a monthly sales volume. If the number is smaller, this means that buyers are dominating the market and there are relatively few sellers. The greater the number, this means there are more sellers than buyers. We calculate the months of supply by dividing the total number of homes for sale over the number of homes sold in one month. For example, if we do a search in a neighborhood and notice that there were 30 homes for sale in August 2013, but only 10 actually sold, this means that there are 3 months of supply left in the market if only 10 homes sold for each month and no more homes came on the market.
As you can see in the chart, attached single-family homes (condos, co-ops, townhomes) are now in that 5-6 months supply range. Yes, the Evanston Real Estate Market is balanced, when we consider only attached single-family homes. Detached single-family homes are still significantly below the 5-6 months supply of inventory range at 3.3 months supply of inventory. This is still a hot market and detached single-family homes that are priced-right, well-maintained and appropriately updated are still selling fast.
I am busy serving others this month, but I am eager to know how I might serve you and your family as you make what are the most important financial and lifestyle decisions most of us ever make: our housing decisions. Give me a call (You can find my number on my website). Friend me on Facebook. Follow me on Twitter. Visit my site to register for market updates. Let’s do some housing for good.