Elmhurst Real Estate Guide (Q4 2021)

Q4 2021

ELMHURST

LOCAL REAL ESTATE GUIDE

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OPENING NOTE

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Our clients often reach out months (or even years) ahead of selling or buying. Tracking data, analyzing the market and talking to industry professionals like our contributors inform our perspectives as we look ahead to 2022. While we see a seller’s market continuing, price increases are likely to moderate with interest rates ticking up from historical lows (see pg. 8). Please let us know if a customized home analysis would be helpful now or in the future.

We finished 2021 with many highlights. This past year we supported numerous amazing local organizations and events (see pgs. 28 – 29) and grew our Elmhurst closed sales volume by 144% along the way. We love this town and 2022 will be bigger and better. More to come!

For the cover we chose the historic Glos Mausoleum landmark. We are excited for the Park District’s expansion plan for Glos Memorial Park to be completed this spring.

All my best,

630.750.9551 kelly.stetler@compass.com www.kellystetlerrealestate.com 2

WHAT’S INSIDE FEATURES 8

6

New Listings

10

Contracted & Closed

12

New Construction

16

Home Inventory

18

Contract Time

22

Price Discounts

(John Noldan, Guaranteed Rate)

24

Price Per Sq. Ft.

Title Information

26

Closed Sale Prices

(Themis Katris, The Katris Law Group)

27

Comparing Home Types

Home Item Lifespans

30

Comparing Suburbs

Looking Ahead What We Expect for 2022 (Kelly Stetler, Compass Real Estate)

Curtain Selection

9

Factors Impacting the Finished Look (Karen Lee, Total Window Treatments)

Conforming Loans

13 20 21

Loan Limits Move Higher in 2022

Understanding Property Title Topics

How Long Key Home Elements Last (Mary Alice Tourdot, LEGACY Inspection)

EVERY ISSUE 3

METHODOLOGY Overview of Terms and Elmhurst Submarkets CLOSED: closed transaction reflecting the final sales price (does not include any seller credits) NORTHEAST CONTRACTED: contingent or pending transaction reflecting the latest asking price CONTRACT TIME: number of days between the first list date and the contracted date (does not include time from contract to close) HOME INVENTORY: number of homes currently available for sale

NORTHWEST (North Ave. to Lake St. and Rte. 83 to Hwy. 290)

CENTRAL WEST

CENTRAL EAST

(Prairie Path to North Ave. and Rte. 83 to York St.)

(Prairie Path to North Ave. and Hwy. 290 to York St.)

MEDIAN: middle value of a given dataset (all report values are medians, which are less impacted by outliers than averages) PRICE DISCOUNTS: percentage difference between the initial list and recorded sale price PRICE PER SQ. FT: ratio of the price to the square footage of a closed transaction as a relative price measure (factors in home size)

(Lake St. to Grand Ave. and Hwy. 290 to Rte. 83)

SOUTHEAST (Prairie Path to Butterfield Rd. and Hwy. 290 to York St.)

SOUTHWEST (Prairie Path to Butterfield Rd. and Rte. 83 to York St.)

Note: All figures represent detached single-family homes unless otherwise specified. Price range data based on the city of Elmhurst. Submarket figures based on the approximate areas identified on map above.

4

MARKET SUMMARY “Seller’s Market” Remains Entering Seasonal Upswing

Lower Supply

New Home Listings (Q4)

24%

Contracted / Closed Homes (Q4)

Recovering New Construction

New Home Permits (2021)

45%

New build permits recovered in 2021 with demos outpacing builds

Fewer Available Homes

Dec. Month End Inventory (YoY)

35%

“Seller’s market” with 14+ year low of available homes this time of year

13%

Short Market Times

Original List to Contract Days (Q4)

Less than 2 weeks generally across submarkets and price points

Narrow Price Discounts

Closed Sale Price Discounts (Q4)

Tight discounts of less than 3%; houses selling near full price

Higher Sale Prices

Sale Price / Price Per Sq. Ft. (Q4)

Higher prices across submarkets and price points, except Northeast 5

NEW LISTINGS

By Price Range

Rolling Last 12 Months (YoY%)

 New listings were down YoY for the quarter, except homes priced $1M+  October and December listings both lower by ~30% and November down ~10%  Record listing activity over the last 12 months at $1M+ as Elmhurst grows more expensive

600

 Low Q4 for new listings setting up for very limited homes available going into 2022

500

<$400K

$400K – $699K

$700K – $999K

$1M+

514 (+15%)

400

Oct. – Dec. (YoY%)

333 (-10%) 300

'21

'20

%

<$400K

50

86

-42%

$400K - $699K

57

74

-23%

$700K - $999K

26

27

-4%

$1M+

28

24

17%

200

185 (-24%) 182 (+16%)

100 0

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21

Price Range

6

By Submarket

Rolling Last 12 Months (YoY%)

 Q4 showed consistently lower new listing activity across submarkets  Despite very few new listings in the Northeast for the quarter, this submarket remains up over the last 12 months  Central West and Southeast Elmhurst listing activity is down significantly over the last two years

Northwest

Northeast

Central West

Central East

Southwest

Southeast

400

300

281 (-4%)

Oct. – Dec. (YoY%)

206 (-7%) 203 (-1%) 166 (-10%) 132 (-10%) 103 (+13%)

200

'21

'20

%

Northwest

35

44

-20%

Northeast

3

17

-82%

Central West

22

28

-21%

Central East

28

39

-28%

Southwest

37

50

-26%

Southeast

15

18

-17%

100

0

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21

Submarket

7

Contributed By:

LOOKING AHEAD Kelly Stetler

Perspectives on the 2022 Elmhurst Market

 Last year was a great year to sell a home, but frustrating for buyers – home prices continued to rise while the number of available homes declined  We see a seller’s market remaining in Elmhurst for 2022, but price growth should moderate as mortgage rates rise from historical lows; however, this dynamic will continue to create affordability challenges  Limited home availability will be an ongoing issue, especially early in the year as buyers try to lock in lower interest rates; we expect supply and demand to normalize in the back part of the year

New Listings Analysis (% of Full Year Listings)  Over the long-term Q2 consistently has the highest new listings (Q1 / Q3 next and similar) 40% 30%

25.9%

20%

31.2%

 Long-term seasonal trend shifted in 2021 with Q2 and Q3 much higher than historical averages

35.4% 30.8%

26.6%

20.5%

16.3%

13.2%

10% 0%

Q1

Q2 2008 - 2021 Avg.

Q3 2021

Q4 8

Contributed By:

CURTAIN SELECTION Many Factors Impact the Finished Look  Decide on outside mount or inside mount hanging  Select metal or wood hardware  Measure where curtain rod is hung (short or to the floor)

 Choose pleat type  Pick fabric and light filtering or blackout lining  Determine side panel or draw drapery style 9

CONTRACTED & CLOSED

By Price Range

Rolling Last 12 Months (YoY%)

 Contracted & closed homes were down 13% across price ranges; largest decline at $700K – $1M for the quarter  While contracts were down meaningfully in October and November YoY, December increased by ~15%  Contracted & closed homes are declining less than new listings driving lower inventory

<$400K

$400K – $699K

$700K – $999K

$1M+

600 541 (+13%) 500

483 (+3%)

400

Oct. – Dec. (YoY%)

300 '21

'20

%

<$400K

118

134

-12%

$400K - $699K

89

104

-14%

$700K - $999K

35

48

-27%

$1M+

43

43

0%

258 (-3%) 200

187 (+30%)

100 0

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21

Price Range

10

By Submarket

Rolling Last 12 Months (YoY%)

 Contracted & closed activity was mixed across submarkets in Q4  Each of the Western submarkets experienced meaningful declines for the quarter  Northeast submarket is up dramatically over the last 12 months, resulting in very low home inventory is this area

Northwest

Northeast

Central West

Central East

Southwest

Southeast

400

317 (-7%)

300

269 (+11%) 241 (0%)

Oct. – Dec. (YoY%) 200

'21

'20

%

Northwest

48

69

-30%

Northeast

24

23

4%

Central West

32

42

-24%

Central East

54

54

0%

Southwest

52

86

-40%

Southeast

44

33

33%

100

0

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21

Submarket

191 (+1%) 167 (+4%) 138 (+66%)

11

NEW CONSTRUCTION Permit Activity

Rolling Last 12 Months (YoY%)

 Approx. 1,150 new home permits since 2010  New construction activity recovered significantly in 2021  Highest new home and demo permit activity in the last few years

New Home Permits Issued

Demo Permits Issued

160

 Expecting a larger supply of new construction homes in 2022 based on demo permits

Last 12 Months (YoY%)

120 103 (+36%) 94 (+45%)

97 88

90 89 65

76

94103

80

'20 ‘21 '21

'20

'19

'18

'17

'16

'15

0

'14

New Home Permits Issued Demo Permits Issued

'21

'13

'20

'12

'19

'11

'18

'10

40

'09

125 100 75 50 25 0

12

Contributed By:

CONFORMING LOANS John Noldan

What is a Conforming Loan?

A conforming loan is one that meets the guidelines of the three government-sponsored enterprises (GSE): Freddie Mac, Fannie Mae and Ginnie Mae. The GSEs are responsible for buying ~70% of mortgages from lenders, which means that most borrowers will have to stick to these limits in order to qualify for a conventional loan.

An increase in conforming loan limits gives homebuyers the advantage of keeping up with rising home prices and allows a more flexible and manageable loan option. Some of the benefits of conventional loans are:  Lower down payment options

 Options for fixed-rate or adjustable-rate mortgages

 More flexible credit score requirements

 Avoid mortgage insurance by providing a 20% down payment

New Conforming Loan Limits Units

2022

2021

1

$647,200

$548,250

2

$828,700

$702,000

3

$1,001,650

$848,500

4

$1,244,850

$1,054,500

Conforming loan limits are even higher in counties that are considered high-cost areas. To view the FHFA’s new baseline for your location, visit fhfa.gov. Guaranteed Rate is not affiliated with the Federal Housing Finance Agency.

Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply, contact Guaranteed Rate for current rates and for more information.

Guaranteed Rate, Inc is a private corporation organized under the laws of the State of Delaware. It has no affiliation with the US Department of Housing and Urban Development, the US Department of Veterans Affairs, the US Department of Agriculture or any other government agency. (20211208-874377)

13

HIGHLIGHTED SALE Closed in Q4 2021 – Central West Elmhurst

Sold By: $528,500 SALE PRICE

98% SALE / LIST PRICE

$256 PRICE PER SQ. FT.

3 / 2.1 BEDS / BATHS

2,067 SQ. FT.

Prior listing agent was not successful during peak selling season; utilized custom and aggressive marketing post-Labor Day to drive new interest 14

HIGHLIGHTED BUY Closed in Q4 2021 – Central West Elmhurst

Bought With: $1,040,000 BUY PRICE

100%* BUY / LIST PRICE

$454* PRICE PER SQ. FT.

3 / 2.1 BEDS / BATHS

2,201 SQ. FT.

Empty nesters moving to be closer to family, seeking proximity to downtown and maintenance-free living in a new or updated home with two parking spaces

* Extra parking space purchase valued at approx. $40K was negotiated with the developer

15

HOME INVENTORY

By Price Range

Dec. Quarter End (YoY%)

 Available homes declined across price points, except $1M+  Inventory is particularly limited for homes priced from $700K – $1M  Home inventory remains at 14+ year lows

<$400K

$400K – $699K

$700K – $999K

$1M+

200

 Scarce inventory expected to continue driving “seller’s market” conditions 150

Dec. Trends (Relative%)

'21

'20

0

'19

'20 '21 $400K – $699K $1M+

'18

16%

'17

'18 '19 <$400K $700K – $999K

34%

'16

24%

50

'15

30%

41%

'14

28%

8%

'13

28%

34%

35%

'12

0%

25%

17% 15%

'11

25%

23%

'10

50%

17% 25%

'09

75%

100

'08

100%

31 (-23%) 26 (+30%) 12 (-69%) 6 (-65%)

16

By Submarket

Dec. Quarter End (YoY%)

 Home inventory is meaningfully lower, particularly in the Northeast and Southeast  Only the Southwest submarket had more than 15 homes available at any price  Relative home inventory in the Southwest has moved to its highest level in the last few years with steeper declines elsewhere

Northwest

Northeast

Central West

Central East

Southwest

Southeast

100

75

Dec. Trends (Relative%)

'21

'20

'19

'18

0

'17

'21 Central West Southeast

'16

'19 '20 Northeast Southwest

25

'15

20% 19% 3% 19%

'14

21% 15% 10% 20%

'13

'18 Northwest Central East

7% 33%

'12

0%

10% 23%

'11

25%

15% 22% 22% 19% 5% 17%

'10

50%

13% 22% 18% 23% 9% 16%

'09

75%

50

'08

100%

23 (-8%) 14 (-39%) 13 (-38%) 13 (-19%) 5 (-55%) 2 (-82%) 17

CONTRACT TIME

By Price Range

Rolling Last 12 Months (YoY%)

 Days between listing date and contract signing have been low (mostly less than a month) for several years  Homes went under contract often within 2 weeks in Q4 across all price points  Expect contract times to remain short given buyer demand and limited inventory

<$400K

$400K – $699K

$700K – $999K

$1M+

225

150

Price Range

'21

'20

%

<$400K

16

18

-11%

$400K - $699K

15

9

67%

$700K - $999K

18

9

100%

$1M+

8

31

-74%

75

0

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21

Oct. – Dec. (YoY%)

13 (-28%) 11 (-73%) 11 (-27%) 9 (-44%) 18

By Submarket

Rolling Last 12 Months (YoY%)

 Contract time in Q4 was around 2 weeks or less across submarkets, except Northeast and Southeast  Buyers are reviewing new listings quickly given fast contract times  Homes on the market for 3 weeks or longer are likely overpriced or have other factors impacting time / interest

Northwest

Northeast

Central West

Central East

Southwest

Southeast

100

75

Oct. – Dec. (YoY%) 50 '21

'20

%

Northwest

9

12

-25%

Northeast

25

27

-7%

Central West

16

9

78%

Central East

14

12

17%

Southwest

13

13

0%

Southeast

25

12

108%

15 (-21%) 15 (-43%) 11 (-31%) 11 (-35%) 10 (-47%) 9 (-36%)

25

0

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21

Submarket

19

Contributed By:

TITLE INFORMATION Understanding Title Commitment, Searches and Insurance

A title commitment is a pledge by a title company to issue a title insurance policy upon closing. If, after closing, it is determined that the seller did not have the right to transfer the full interest in the real estate to the buyer, the risk will lay with the title company not the buyer.

Title searches look at public records pertaining to ownership to determine if there might be any future problems. Once the title company completes the search, it is then sent to an attorney to review. Once it is reviewed and approved, the title company will issue title insurance.

What can an attorney find during a title search?

Who owns the property? o Individual(s), trust or LLC? o Exact spellings – e.g. maiden name from years ago

Any mortgages / credit lines? o Who the lender is? o Loan payoffs will be needed for closing

Any other issues / encumbrances? o Mechanic liens o City violations o Tax liens or unpaid property taxes

This information assists with confirming the property history and circumstances as well as preparing for closing to convey clear title. Note that Elmhurst requires a sump pump inspection prior to closing as well as a real estate transfer tax stamp.

20

Contributed By:

HOME ITEM LIFESPANS Understanding How Long Key Home Elements Typically Last

Roof Depends on material, type and quality, number of layers, climate and exposure Asphalt  10 – 45 years  Will “cup” or “curl” and lose granules eventually Wood Shingle / Shake  20 – 40 years  May curl with age, much like asphalt; shingle could rot For homes in our area, the south face of the roof may age quicker than the north face given exposure to sun most of the day

Furnace / Air Conditioner

Water Heater / Boiler

Furnace

Water Heater

 20 – 30 years for gas or electric

 Approx. 13 years

 Furnaces in crawl spaces or damp basements may not last as long  Professionally service annually to maximize life Air Conditioner  20 – 25 years in our area

 Older tanks begin to leak from a valve over time  Corrosion and staining at the burner compartment door may be a sign the flue is blocked Boiler  25 – 30 years

 15 – 20 years in warmer climates

 Gaskets and air vents should be checked along with other components once per year

 Unit should be professionally serviced annually with fluids topped off if needed

 Flushing the hot water boiler and removing minerals adds to the life of the system 21

PRICE DISCOUNTS

By Price Range

Rolling Last 12 Months (YoY%)

 Sales closed at 96% – 98% of original list price for Q4 as fewer homes sold at or above full list price  While multiple offers are still happening, the last summer frenzy has moderated  Price discounts are narrow and expected to remain that way near-term

<$400K

$400K – $699K

$700K – $999K

$1M+

100% 98% (+1%) 98% (+1%) 97% (+1%) 97% (+1%) 95%

Price Range

'21

'20

%

<$400K

96%

96%

0%

$400K - $699K

98%

98%

0%

$700K - $999K

97%

99%

-1%

$1M+

97%

96%

2%

90%

85%

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21

Oct. – Dec. (YoY%)

22

By Submarket

Rolling Last 12 Months (YoY%)

 Price discounts have been mostly consistent across submarkets  Limited differences reflect appeal of Elmhurst overall as well as each submarket  Discounts remain tight across submarkets

Northwest

Northeast

Central West

Central East

Southwest

Southeast

100% 98% (+2%) 98% (+2%) 98% (+3%) 98% (+1%) 97% (+1%) 97% (+1%)

 Buyers and sellers mostly meeting at 2% – 4% discount to original price 95%

Submarket

'21

'20

%

Northwest

98%

98%

0%

Northeast

97%

97%

0%

Central West

98%

97%

1%

Central East

96%

96%

0%

Southwest

97%

97%

0%

Southeast

96%

96%

0%

90%

85%

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21

Oct. – Dec. (YoY%)

23

PRICE PER SQ. FT.

By Price Range

Rolling Last 12 Months (YoY%)

 Price per sq. ft. trend was higher at prices below $1M  Homes priced $1M+ saw a slight decline for the quarter and have been flat during the last 12 months  Pricing continues to be strong based on low home inventory and continued buyer demand

<$400K

$400K – $699K

$700K – $999K

$1M+

$350

$309 (0%)

$300

Oct. – Dec. (YoY%) $251 (+3%) $250 (+4%) $239 (+5%)

$250 '21

'20

%

<$400K

$250

$225

11%

$400K - $699K

$250

$245

2%

$700K - $999K

$275

$244

13%

$1M+

$304

$312

-3%

$200

$150

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21

Price Range

24

By Submarket

Rolling Last 12 Months (YoY%)

 Submarkets saw higher prices for the quarter with most areas increasing  Northeast experienced the largest decline for the quarter and last 12 months  North Elmhurst submarkets remain on the lower end of price per sq. ft.

Northwest

Northeast

Central West

Central East

Southwest

Southeast

$300 $274 (+9%) $269 (+4%) $263 (+6%) $262 (+2%)

$250

$236 (+9%)

Oct. – Dec. (YoY%)

$205 (-10%)

$200 '21

'20

%

Northwest

$247

$217

14%

Northeast

$179

$199

-10%

Central West

$284

$255

11%

Central East

$282

$247

14%

Southwest

$271

$277

-2%

Southeast

$279

$251

11%

$150

$100

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21

Submarket

25

CLOSED SALE PRICES

By Submarket  Sale prices were mixed during Q4 with more areas declining than increasing; only Southwest declined over the last 12 months  Northwest and Central West both declined for the quarter (despite a higher price per sq. ft.) due to the sale of smaller homes  Limited homes available and new / updated homes expected to push prices higher

Oct. – Dec. (YoY%)

Rolling Last 12 Months (YoY%) Northwest

Northeast

Central West

Central East

Southwest

Southeast

$700K $600K

$650K (+10%) $635 K (+18%) $572K (+20%)

$500K

$513K (+15%) $505 K (-1%)

$400K '21

'20

%

Northwest

$410K

$438K

-6%

Northeast

$335K

$353K

-5%

Central West

$535K

$570K

-6%

Central East

$648K

$575K

13%

Southwest

$421K

$473K

-11%

Southeast

$466K

$405K

15%

$352 K (+14%) $300K $200K $100K

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21

Submarket

26

COMPARING HOME TYPES Analyzing Elmhurst Home Types

Home Type

Condos

New Listings

20

17

161

Contracted & Closed

52

28

287

3

10

75

Contract Time

24 days

19 days

15 days

Price Discounts

97.6%

96.7%

97.1%

Price per. Sq. Ft.

$202

$252

$265

Closed Sale Price

$238K

$431K

$449K

Home Inventory

Town Houses

Single Family

27

TOP ELMHURST SUPPORTER Organizations and Events We Supported in 2021 Arts & Culture

Charitable

Moms

Community

28

Community Events

Sponsored by

29

COMPARING SUBURBS Analyzing Western Suburb Markets

Suburb

Median Price

Q4 YoY%

Price / Sq. Ft.

Q4 YoY% Contract Time Q4 YoY%

Clarendon Hills

$550K

-13%

$243

-3%

10

-29%

Downers Grove

$434K

6%

$216

7%

11

-50%

Elmhurst

$449K

-1%

$265

9%

15

25%

Glen Ellyn

$457K

-1%

$239

14%

12

-29%

Hinsdale

$970K

4%

$291

10%

30

-32%

La Grange

$479K

-4%

$253

9%

18

6%

Lombard

$321K

10%

$192

2%

13

63%

Oak Brook

$950K

19%

$237

4%

54

80%

Western Springs

$618K

-11%

$284

8%

16

0%

Wheaton

$415K

10%

$223

13%

12

-8%

30

OUR CONTRIBUTORS Special Thanks to Our Contributors

John Noldan – EVP, Mortgage Lending Guaranteed Rate

Themis Katris – Managing Partner The Katris Law Group

630.290.6251 jnoldan@rate.com @johnnoldan_guaranteedrate

708.351.1199 tk@katrislaw.com @themi_the_closer

NMLS License #2611; NMLS #193680

Mary Alice Tourdot – Director of Growth Legacy Inspection Group

Karen Lee – Owner & Certified Designer Total Window Treatments

847.217.5958 office@legacyinspect.com @legacy_inspection_group

630.530.7474 twtelmhurst@gmail.com @twtelmhurst554 31

www.compass.com

Compass is a licensed real estate broker and abides by federal, state and local equal housing opportunity laws. All material presented herein is intended for informational purposes only, is compiled from sources deemed reliable but is subject to errors, omissions, and changes without notice. Sources include Midwest Real Estate Data LLC and the Elmhurst Community Development department. This is not intended to solicit property already listed.

Elmhurst Office 103 Haven Road Elmhurst, IL 60126 630.750.9551 kelly.stetler@compass.com www.kellystetlerrealestate.com