[NOTE: This post was initially published June 2018. The graphs will continue to reflect current metrics.]
Recently, I've spoken with three different individuals who expressed a belief that units with two bedrooms are easier and faster to sell because more people are looking for two bedrooms. It sounds plausible. But, what does the data actually suggest?
More often than not over the last 3 years, units with one bedroom or less had a slightly lower "Months Supply" of inventory than two bedrooms. In June, both hovered just below a 3-month supply of inventory, indicating a sellers' market. (Approximately 6 months of supply would be a more balanced inventory for buyers and sellers.)
More people live in homes with two bedrooms than homes with one bedroom or less. And, there is a larger supply of two-bedroom homes in order to meet that demand.
Over the last 3 years, two-bedroom units have consistently had a longer market time, from listing-to-closing, than units with one or no bedrooms. Most recently, in June 2018, one-or-less-bedroom units inched up closer toward the market time of two-bedroom units, just over 60 days on the market.
Over the last three years (June 2018), one-bedroom-or-less units have consistently gone under contract at least as fast, and often faster, than two-bedroom units.
If we look at bathroom count instead of bedroom count, two-bathroom units have been selling faster than single-bathroom units for the last three years (July 2018).
So, while more people live in two-bedroom homes than one-bedroom homes in the Chicago area, the supply of two-bedroom homes is also larger. If you have been waiting to buy and saving up for a two-bedroom unit, don't overlook the opportunity to start earning equity faster by buying a one-bedroom unit to start your path to home ownership. By buying a one-bedroom home (at a lower purchase price than a two-bedroom home), you will also be paying less in interest over the life of the mortgage. And, that could easily be your biggest driver, accelerating from "Loan" to "Own".
If you found this information helpful, please like or share it with someone you think could benefit from this information in their home search or sale. And, don't forget to connect with me on LinkedIn, Facebook, and Instagram.
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