West Aurora Real Estate Market Update - Summer 2023

This update is specifically for the homes located within the Freeman School District boundaries. 

Summer 2023 was an average time for sales in this area.  There were 25 homes that sold between June and August 2023.  The average sale price was $314,561.  This is above the average list price which was $310,791.  The average days on market for the homes that sold was 12 days!  This compares to 45 sales from the same period in 2022 with an average sale price of $347,790.  The number of sales has decreased substantially from 2022 as well as the average sold price.  The main reason for this is mostly due to the higher interest rate environment that we are in today.  Less buyers means less competition and has resulted in a drop in average sales price during that time. 

As you are aware, there are also a wide variety of homes in our area.  The fact that the average sale price has dropped is more indicative of different types of homes selling than a huge drop in value.  Home prices are expected to be less throughout the United States in 2023 as compared to 2022, but the decrease is not expected to be the number we have seen in our neighborhood.

In total, a little over 1% of homes in the Freeman Elementary School district sold in 2022 and that number should be relatively similar in 2023.  Throughout the country in 2022 about 3.5% of homes sold.  We are traditionally lower than the national average in our neighborhood.  This reflects the strength of our little part of Aurora and the fact that people tend to stay in their homes longer than average here.

In my crystal ball, I do see tougher times ahead for home sellers.  This winter will be an interesting time to see how the activity is in our area.  I would expect less new listings and fewer transactions than in previous years.  This does not mean that it is a bad time to sell your home.  In some cases, a sale over the winter may be preferable.  If you have a desirable home in the mid or lower end of the price spectrum, winter could bring much less competition from similar homes and a successful sale is very possible.  In general, because of higher interest rates and relatively high prices, there are many fewer buyers in the market right now.  Buyers are still out there, and homes can be sold… but less demand means that your home price really needs to reflect the location and condition of your home.  Gone are the days of slapping a price on a home and watching as people bid that price up higher and higher.  It is essential now that the price you ask of the home reflects the market.

I doubt very much that next summer the list price of homes is less than the sale price.  And if you get behind the market now, you could pay the price in the end. 

I have seen markets like this before and know how to advise people of the best way to proceed.  I sold real estate in the runup to 2008 and then saw what happened when the market started to fall.  Luckily, I have also seen the rebound since 2012.  Using an experienced agent is so important to having a good selling experience.  Especially in changing markets like this one.