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Village of Mount Prospect
Mount Prospect, Illinois is a northwest suburb of Chicago. The Village of Mount Prospect is located 22 miles from downtown Chicago and just minutes from both O'Hare International Airport, the world's busiest, and the much smaller Chicago Executive Airport (formerly Palwaukee Airport) which services many corporate and private aircraft. Established as a farming community soon after The Great Chicago Fire and incorporated in 1917, Mount Prospect is currently home to over 56,265 residents as well as several major corporations.
Mount Prospect has matured into a dynamic community of tree-lined neighborhoods, retail centers both large and small and architecturally pleasing light industrial/office complexes. Mount Prospect is a vibrant community that has much to offer, yet retains a sense of small town charm.
In the “Market Trends-Overview”, I explained where we obtain the data to identify and analyze these Market Trends and how we use this information in appraising Residential properties. For each of the individual Suburban areas, I will include a separate market analysis report for that suburb and include one or two charts to show what the trends look like for a particular Village or City in our community.
MARCH 01, 2009 UPDATE:
Hello and welcome back. The last time I provided charts for Mount Prospect was back on November 01, 2008. I’m going to keep those pages on-line and they can be viewed immediately following this current report. In the first chart you can see that since the end of third Q 2008, we have continued to see lower average sales prices for detached single family residences in Mount Prospect and as expected a lower number of sales for fourth quarter which is typical and considered as a seasonal decline.
In the next two charts there is something interesting going on. First you will see that already in the first quarter of 2009, the “Avg. Days on Market” for closed sales is starting to decline. What this indicates to me is that the homes that are currently selling have been; 1) listed less than 4-months ago and 2) have APPARENTLY been priced at a reasonable price that is attractive to buyers in the current market. Now, take a look at the second chart/table that reflects “Median and Average sales prices - for Active, Pending and Closed sales”. There are currently 227 active listings with an average Days on Market time of 223 days and the 32 pending sales reflect an average DOM of 242 days. What this indicates is that there is obviously TOO much inventory (too many homes for sale) based on the numbers of closed sales we are experiencing.
The next chart indicates that based on the 28 sales over the past 90 days, the absorption rate is 9.33 sales/month and with the current inventory levels using a rate of 9.33 sales per month it will take 27.75 months to sell. (Oh yeah….that assumes that ALL of those homes are reasonably priced??)
 In the last chart, looking at those 28 sales over the past 90 days, we see that the Sale Price-to-List Price ratio is still quite high at roughly 93%. In other words, homes are selling at an average rate 93% less than the average List Price, e.g., a home listed for $350,000 is selling for approx. $325,500.
So, the question I would ask you…….What’s your home worth? Not sure? Maybe it’s time to get an appraisal. Get an appraisal form a Certified Real Estate Appraiser, one with a Designation from the National Association of Independent Fee Appraisers (NAIFA)….Call-TJH & Associates, Inc. today.
THE FOLLOWING WAS POSTED ON NOVEMBER 01, 2008
Let’s take a look at two charts that reflect sales data for the past three+ years (01/01/2005 to 10/31/2008), again, these results are for Single Family Detached Residences in Mount Prospect:
In the chart(s) above, we can see two areas of concern:
1) The trend would indicate that while there was a moderate increase in the average sales price from 2005 to 2006 and even a flat or stabling in the average sales price from 2006 to 2007, the market has started to decline at the end of 2007 and continued through present
2) The trend for “number of sales” per quarter has shown a steady decrease year over year, even with moderate increases during the 2nd and 3rd quarters of 2008 which are traditionally the strongest months
What we’re experiencing is a “declining value” market trend. With these declining values, properties are not selling as quickly and staying on the market for a longer period of time. And, consequently, the eventual sales price (as indicated in the “Sales to List Ratio”) is considerably less than the list or asking price.
The following report will examine current market activity for the Mount Prospect area and identify median and average sales prices, the current inventory or number homes on the market both “active listings” and “pending sales”, the number of days on market (DOM) and the “sales to list ratio”, again, these results are for Single Family Detached Residences in Mount Prospect:
The report above is the same “Market Analysis” type report that I include in my residential appraisal reports. The data is compiled by Midwest Real Estate Data, LLC via the “connectMLS” system and is current as of October 31, 2008.
So, what we’re seeing for Single Family Detached homes in Mount Prospect is:
1) There is a 14.38% decline in the median sales price for the six month period ending 10/31/2008 vs. the same six month period in 2007
2) Current six month period had 134 closed sales vs. 171 in the same six month period in 2007
3) With an absorption rate of 22.33 sales per month we are currently looking at a 13.16 month supply of homes for sale
4) Over the past 3, 6 and 12 month periods, the average “days on market” for a listing was 152 days to 166 days, while the current actives and pending listings are exceeding six months
5) The sales to list ratio is currently 92.94%
Conclusion:
This gives you an idea of how we look at historical data to identify and analyze market trends. The charts above pertained specifically to Single Family Detached Residences in Mount Prospect.
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