Though real estate values in Deerfield have yet to climb again after they began their 30 percent drop over the last five years, the Village’s market is improving, according to local industry experts.
“Gangbusters,” is how Coldwell Banker Managing Broker Carol Strauss described the current situation. “Inventory is being exhausted,” she added about the glut of unsold listings which have been on the market over the past few years.
Earlier: Foreclosures Hold Steady in Deerfield
In the month of March, the average price of a home in Deerfield actually increased, according to Keonig & Strey Senior Vice President and Broker Manager Michael Mazzei. He stressed this is for all dwelling units including single family homes and multiple dwelling units.
“It’s been going well overall,” Mazzei said. “Sellers are starting to feel better. Inventory is shortening and we’re starting to see competing offers. Values are holding. We’re getting more stabilization.”
Homes valued between $200,000 and $400,000 are selling faster than others, according to Strauss. She said there is now a four-month backlog of available homes.
Despite improving market conditions, short sales and foreclosures remain part of the local real estate scene. Strauss thinks the increased activity is making more homeowners who owe a lender more than a property is worth more willing to sell.
“Sellers are willing to stop the bleeding. They know they (sellers) can get it done and do not want to wait for the lender to foreclose,” Strauss said. “We’re doing more short sales than foreclosures,” she added differentiating between the two types of distressed sales.
According to Mazzei, approximately 25 percent of his company’s Deerfield transactions involve either a short sale or foreclosure.
Beginning June 15, people whose mortgages are held by federally backed programs like Fannie Mae and Freddie Mac will have an easier time obtaining short sales, according to Strauss. The agencies must look at a proposal within 30 days from receipt and give an answer in 60 days.
“It can take a lender six months to answer some of the time,” Strauss aid.