I’m asked often “When is a good time to list?” when talking about the spring market. Or when is a good time to start looking at houses? Some of my clients will think the spring market is literally just that, in the spring time. Others will think it is when the weather warms up which in Chicago could be June or even July. But the reality is the “spring market” has been starting earlier and earlier in Chicago for years. This has nothing to do with the weather. Surely, we all know the weather is not getting any warmer in January or February, at least if last year was any indication. So when does the spring market really start?
I advise all the agents on my team to be ready for the spring market January 2nd. January 1st people are still hungover from the night before, but January 2nd people start making moves on whatever they talked about over the holidays. You know this. Walk into any gym on January 2nd and its packed. A similar mindset takes place in real estate. However, that mindset can quickly change, just like New Years resolutions fade into memory so too can the idea of moving. However, with real estate there are a few additional influences that will cause the spring market to start in January this year and why you should be ready as a buyer or a seller sooner rather than later.
Low Inventory Inventory continues to remain low throughout the city, especially good inventory. There is some junk on the market, sure. Especially a good handful of places that have not been updated in 15/20 years but are priced too high to justify rehab work. But for the most part, good quality inventory is limited. Therefore, the old saying “the early bird gets the worm” comes into play here. You have to be ready early. Hence, January 2nd.
Low Inventory Might Not Last Too Long… This year I think we will see low inventory numbers but we will start to see a slightly increased influx of inventory sooner rather than later. Last year for instance in January we saw a lot of pocket listings that were coming to market at the end of February or March, but were not actually on the MLS. Under new NAR guidelines, such pocket listings (unless only marketed in-house) are now illegal as of January 2020. Therefore, if someone wants to get early exposure to the whole market they have no choice but to list on the MLS. So while inventory levels will start off low I do think we will see an increase because of this new regulation. With this being said, it means that instead of just competing against a handful of buyers for a “pocket listing” you’ll now be competing against the entire market. Be ready!
If you’re looking to list your home it means you need to be ready sooner. As a pocket listing we can get away with no photos or imperfections because the listing is “special,” it is “exclusive” so buyers will go out of their way to see it because they feel like they’re privy to information no one else has. When you have to go live on the MLS you better have all your ducks in a row.
Social Media is more powerful in the real estate business than ever before. Real Estate brokers cannot wait to post what they have put under contract. We’re a fragile bunch. We like our egos inflated as much as possible. But here is the thing…sales forecast for this upcoming year are relatively flat for the overall market, even chicago expects a small decline in sales with less than a 1% growth in prices in 2020. This means Realtors are going to be networking harder, posting more on social media, and doing more to drum up business to compete with last years numbers. I think this year Realtors will come out of the gates running earlier than ever before and I do believe this will have an affect on the start of the spring market.
Lease End Dates Over the past 5 years more and more landlords have refused to take leases ending in the winter time and have pushed tenants to take longer term leases or odd lease lengths in order to end in the spring time. There are more leases now ending in March, April, and May then we ever have had before. This means if you want to purchase and close on a home before the end of your lease that end in April, you really should start looking at the start of the year. Listing agents know this and are starting to push sellers to list early because of this, especially with properties that are attracting first time homebuyers.
Now I’m not saying January 2nd we’re going to see an influx of inventory or lines at open houses. What I am saying is that now more than ever you need to be PREPARED early for the spring market. Be ready to jump on what you like if you’re a buyer and if you’re a seller make sure you start making arrangements in your home. Get those improvements made if you’ve been putting them off. Make those small repairs. Figure out your plans and where you want to move next.
Paul Blackburn is an Illinois Licensed Realtor and Broker with @properties in Chicago. He can be reached at anytime via e-mail at Paul@PKBlackburn.com or visit www.PKBlackburn.com