St. Charles IL Real Estate Trends For August 2012

St. Charles IL real estate was stronger in August of 2012 than it was in August of 2011. The market has built on the positives we have seen for the last several months. The number of homes sold in St. Charles in August was 65, which is a 12.1% increase from last August’s 58, and brings the year-to-date total of homes sold in St. Charles to 382.  That number is a 2.4%  increase from last year’s total at this time of 373.

Compared to last August, the average home price did fall in St. Charles by 11.7% to $341,705, which can be due to the 15 short sales and foreclosures that closed.  Foreclosures really have a large effect on pricing due to the fact they are vacant and usually bank owned.  Banks are not in the business of owning houses, so they tend to sell them at much lower prices and get “them off their books.”  These sales, for the banks, usually are on the “asset” side of their ledger, so can show up as positive income.  The condition of most of these properties is usually distressed, which also brings down the average sales price.  Another factor contributing to the lower average sales price, was that only 3 homes over $600,000 closed in August.  As I discussed in my July 2012 Trends blog post, there are still a limited number of buyers for luxury homes.  Judging  the average sale price on a month-to-month basis, can be dangerous and can give you inaccurate picture of the entire market.

The true strength of the St. Charles real estate market is reflected by the current number of homes under contract. In August there was 62 homes under contract which is massive number compared to last years 44. This represents a 40.9% increase year over last year.  This not only shows stabilization, but also shows that even at the end of the summer selling season we are seeing growth.  Hopefully these positives trends will continue into the fall and still be evident into the New Year.

Now I want to discuss the data for attached homes in St. Charles IL. The trends for town homes are not as positive as what we are seeing with single family homes. The number of attached houses sold in August 2012 was 10 which is a 41.2% decrease from last Augusts 17 properties that sold.  The St. Charles real estate market is trying to make valiant efforts to recover, and with rates so low the consumer is still targeting buying a house over a town home.  To qualify for the purchase of a town home, the buyer has to factor in the purchase price, the taxes, the monthly assessment and insurance. The good news is that the number of town homes sold year to date is still up 17.4%.  Currently there are 81 properties sold compared to last year at this time which was 69.  The average sales price did tick up a bit to $228,850 for the month of August, but that average sales price is still down 4% from last year’s price of $211,579.  As we saw with single family homes, the current number of attached properties under contract is strong–the current number is 9 and in 2011 the number was 6.

As long as we see single family homes selling at this pace, the number of town homes sold should not worry any one.  When you are bouncing along the bottom, not everything can be on straight upward trend. Short sales and foreclosures will continue to be a significant portion of our market as more and more sellers are drifting “under water.” Hopefully, the sales keeping happening and we can lower the amount of  inventory on the market (not sure when the “shadow” inventory will start to appear).  I have been noticing an increasing number of dual or multiple offers with selling prices starting to ever to slightly trend upward.  If this trend continues, the comparable sales that the appraisers use, will be slightly higher, helping the Spring market prices to be trending upwards.

You can view all the homes I have sold in St. Charles here

707 Derby Course, St. Charles IL

40w952 Campton Trail Road, St. Charles IL

2421 Majestic Oaks Lane. St. Charles IL

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