CAROL STREAM – In Carol Stream, home sales decreased by 22 percent between May 2013 and May of this year, according to a report from the Mainstreet Organization of Realtors.
The report, which includes sales of detached single-family homes, shows that 21 homes were sold this May compared to 27 in May 2013.
There’s an oversupply of buyers and a shortage of homes, said John Bates, real estate broker for Coldwell Banker Residential Brokerage, which serves Carol Stream.
“Supply is obviously a factor, but interest rates are an even bigger factor because everyone wants a deal,” Bates said.
He said the market is interest-rate sensitive, and if rates increase to 4.5 or higher, the market slows down.
Broker Catherine Terpstra, who also works for Coldwell Banker, said 28 Carol Stream homes were sold in June and an additional 32 homes are under contract.
In June 2013, 32 homes were sold in Carol Stream, Bates said.
Tthe lack of inventory is partially because there are fewer short sales, Terpstra said. Sellers could be holding back because the government has not yet decided if it will extend the Mortgage Forgiveness Debt Relief Act, which expired in December, she added.
“Sellers could expect to be taxed on the amount forgiven by their lender, and many sellers are not willing to take that risk," Terpstra said.
On the buying end, some buyers just haven’t found the home they want yet, Bates said.
“Lots of of buyers are waiting for that right home to come on the market,” he said.