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North Shore Real Estate Update – 1st Quarter 2014

North Shore Real Estate Update – 1st Quarter 2014 vs. Year Ago

home sale data for nine North Shore Chicago towns

The spring market has gotten off to a slow start in 2014. Despite an improving economy, home sales on Chicago’s North Shore declined 4% in the first quarter vs. last year. The weather has been so nasty for so long, that most people just hunkered down and didn’t do anything. On the positive side, prices appreciated a healthy 18% over last year, fueled by pent-up demand on the buyer side.

Sellers have also been watching prices rise and many have held off listing in hopes of getting more for their homes down the road. That, combined with the bad weather, has led to a continued lack of inventory. Some towns on the North Shore, most notably Wilmette, are down to less than a three month supply of homes. In Winnetka, while there is more inventory on the market, much of it is in a higher price range than what most buyers are looking for (under $1,000,000).  Over 80% of the active listings are above $1,000,000, whereas only 54% of the homes that sold in the last twelve months were over $1,000,000.

Want more data? You can go here to get more market statistics for the North Shore. If you are trying to figure out what your home is worth in today’s market, we can provide you with a competitive market analysis based on sales of similar homes to yours in your own community and neighbohood. Just give us a call at 847-881-6657.

North Shore Views is the most comprehensive online source for North Shore Chicago real estate and community information. Whether you are looking for market statistics, homes for sale or local events, North Shore Views has it all at your fingertips. Browse information regarding our communities, market data, luxury homes, lakefront property, schools and what you should know about making the move to the North Shore.

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North Shore Real Estate Update – February 2014

North Shore Real Estate Update – February 2014 vs. Year Ago

Feb 2014 Mkt Data

The spring market is off to a slower start this year due to the cold and snowy weather here on the North Shore (as well as everywhere else!). Home sales were off 3% in February vs. last year, mainly because of the low inventory of homes for sale. There continues to be pent-up buyer demand and the houses that come on the market are selling quickly if they are priced right and in good condition. Bidding wars are pushing prices up, and the February median price was 6% ahead of last February, while market time declined 44% to under three months.

Now that we are seeing prices appreciate again, are you wondering what your North Shore home is worth? You can get a quick and easy over-the-net home valuation by just giving us some basic information about your house. Just go here to submit your info and we’ll send you your home valuation within 48 hours.

Now that we are seeing prices appreciate again, are you wondering what your North Shore home is worth? You can get a quick and easy over-the-net home valuation by just giving us some basic information about your house. Just go here to submit your info and we’ll send you your home valuation within 48 hours. – See more at: http://northshoreviews.com/2014/02/08/north-shore-real-estate-update-january-2014/#sthash.SeFTL8jk.dpuf

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Home Price Projections For 2014 and Beyond

After five years in the doldrums, housing prices finally showed some healthy gains in 2013. homeowners are anxious to know two things: 1) will prices keep rising in 2014 (and is this a good time to sell?)  and 2) when are prices going to get back to 2006-2007 levels?

Here is the best available thinking on that subject. The charts below are courtesy of Keeping Current Matters, and illustrate the collective wisdom of 118 economists, industry analysts and real estate experts.

Some Historical Perspective

This first chart shows that average annual price appreciation before the housing market Bubble was a slow and steady 3.6%. During the period 2002 to 2007 that doubled to 7% per year. For the next five years of the Bust the average price decline was 5.2% per year. Coming out of the recession, with so much pent-up demand from buyers, prices started increasing at a rate of 4.7%.

Historical home price appreciationGoing Forward

Going forward the consensus is that increases will be a healthy 4.5% in 2014 and then begin to moderate as the market returns to normal.

Projected home price appreciationNow, of course, it’s not like all 118 economists and experts actually agreed on a number. No, each provided his or her own projections, with some being more optimistic and some on the pessimistic end of the spectrum. While all of their  projections were combined into a “best estimate” in the chart above, the chart below shows a “best case” scenario taking the optimists’ projections and a “worst case” scenario using the pessimists’ projections. The good news for homeowners is that even the pessimistic Bears see prices appreciating almost 11% by 2018.

Cumulative home price appreciationTo answer the question about when prices will return to 2006-2007 levels, it will likely be sometime around 2020 before we see prices reach those levels again.

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North Shore Real Estate Update – January 2014

North Shore Real Estate Update – January 2014 vs. Year Ago

North Shore Real Estate Update - Jan. 2014Despite our unusually cold and snowy weather, people have been buying houses! North Shore home sales were up 19% in January vs. a year ago. The strongest gains were in Lake Forest (+111%), which is one of the markets that has been slowest to recover after the housing bust. It seems to be benefiting from the low inventory of homes in communities to the south. Home buyers frustrated with the lack of homes in Wilmette and Winnetka are ending up in Lake Forest, where homes are more plentiful.

Median home prices also jumped 25% from last year, with every one of the nine North Shore communities trending up, most with double digit appreciation.

Market time has continued to decline to 123 days, or 4 months, which is below the 6 month market time we see in a balanced market. Wilmette continues to have the shortest average market time, at 53 days, or 1.7 months, driven by extremely low inventory levels.

The key takeaway: the market is back. People are buying houses. Homeowners are recovering some of the equity lost during the meltdown. If you have been thinking of selling, now may be the right time.

Now that we are seeing prices appreciate again, are you wondering what your North Shore home is worth? You can get a quick and easy over-the-net home valuation by just giving us some basic information about your house. Just go here to submit your info and we’ll send you your home valuation within 48 hours.

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How Do North Shore And National Housing Markets Compare?

 Home Sales and Price Comparison – 2013 vs. 2012

North Shore vs US real estate stats 2013
After five years of doom and gloom, we are finally seeing lots of upbeat stories and optimistic predictions in the media about the housing market.

However, almost all of the news we see is about real estate on a national level. Everyone knows that all real estate is local and there really is no “national” housing market. And frankly, each of us only really cares about the housing market in our own little part of the world.

So, North Shore friends, here’s how our world compares with the U.S. as a whole, with the great State of Illinois, and with the Chicago metro area. Yes, the trends are consistent with the rest of the country. The numbers are even more positive when it comes to growth in home sales – up nearly 25% from 2012. A bit more modest when it comes to price appreciation (+7%).

Why have the North Shore home sales come back more strongly than other areas? Partly because of the intrinsic desirability of this area, with its excellent schools and lakefront location. There was (and still is) huge pent up demand for homes here, coming mainly from city condo owners who were finally able to sell and move North.

And why have prices not appreciated as much? Mainly because of the higher average price point of the houses here.  Homes under $700,000 are where most of the growth came from in the past year. But the market for houses in the higher price ranges (which comprise a higher percentage of the housing stock here than elsewhere) has lagged. While there is virtually no inventory of homes under $800,000, there are still plenty of houses to choose from in the upper brackets (especially $2,000,000+).

Wilmette 2013 Home Sales by Elementary School

Wilmette Home Sales by Elementary School 2013

I recently posted 2013 results for nine North Shore communities, showing that Wilmette had a solid 9% increase in home sales and a 6% improvement in median selling price.

But Wilmette is one North Shore community with pretty diverse housing stock, so I wanted to look at the data on a neighborhood level to see if results were consistent across the board. At the neighborhood level, the results are a mixed bag. The most and least expensive neighborhoods showed the biggest sales gains over last year: Central (+27%), Romona (+50%) and Avoca (+8%). Harper and McKenzie sales actually declined vs. 2012, though that is due to lack of inventory rather than lack of buyer demand.

Harper (+14%) and McKenzie (+11%) had the greatest median price increases over last year, in line with high buyer demand and low supply. Central and Romona showed more modest price appreciation (+2% and +8%, respectively), while Avoca actually posted a 5% price decline.

If you’d like to get a detailed report of home prices for your neighborhood, just send me an email and I will send you information on all of the homes that sold there in the last six months.

North Shore Views is the official website of the Come Home North Shore team and the most comprehensive online source for North Shore Chicago real estate and community information. Whether you are looking for market statistics, homes for sale or local events, North Shore Views has it all at your fingertips. Browse information regarding our communities, market data, luxury homes, lakefront property, schools and what you should know about making the move to the North Shore.

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2014 Real Estate Predictions for Chicago’s North Shore

 

North Shore Real Estate Predictions_2014

It’s mid-January and that means it’s time for me to weigh in with my predictions for the North Shore’s real estate market for the coming year.

But first, I want to revisit last year’s predictions and see how close I came to being right (or not).

Here’s what I said a year ago:

1. Many buyers will be chasing too few homes.
2. Good houses will go fast.
3. Upper bracket homes will be a tough sell.
4. New construction will be up but hampered by lack of available land.

Well, I was generally right on all of these: buyer demand did exceed supply, resulting in bidding wars and dramatically reduced market times. While homes up to $1,500,000 were selling like hotcakes, sales of upper bracket homes (+$2,000,000) lagged. And new construction was definitely up. The only thing I underestimated (along with most economists) was the level of price appreciation. I predicted prices would rise about 3% on the North Shore, whereas the median price ended up being up 9%.

So now for this year’s projections:

1. More people will list their homes and therefore the supply of homes will be greater than last year. Now that prices have started to increase again, fewer people are underwater and more are able and willing to sell. So there will be more inventory for buyers to choose from. However, there is still considerable pent up demand and I think we will continue to have more buyers than sellers, particularly under $1,000,000.

2. Price appreciation will continue but at a slower pace than last year.
One of the things that drove prices up so much last year was that buyer demand outstripped supply. With more houses coming on the market, North Shore price increases will be in the 4-5% range (vs. the 9% appreciation we enjoyed last year).

3. Mortgage interest rates will increase to at least 5%, and possibly 5.5%
Good news for the economy is bad news for mortgage interest rates. The improved economy combined with the Fed’s tapering which will drive rates up by a point or so over the next year. They’ll still be low by historical standards but will mean that homes are 10% less affordable (a one point increase in interest rates means 10% less purchasing power).

4. Mortgages will be easier to get because the increasing rates has reduced refinancing activity and pushed banks to increase their purchase lending. In addition, there are new mortgage rules taking effect in 2014 that will provide greater clarity to banks about the legal and financial risks that come with different types of mortgages, which should make them more willing to make loans.

5. New construction will increase to the extent there is land available. The most active sales of new construction will be under $1,600,000 but available lots to build on are few and far between, so moderately priced new homes tend to go quickly. Higher end new homes not so much. There are currently over 15 active listings of new homes over $2,000,000 in the MLS and only 11 have sold in the past twelve months.

Now that we are seeing prices appreciate again, are you wondering what your North Shore home is worth? Give us a call at 847-881-6657 and we’ll provide you with a Pinpoint Price Analysis. Or, if you just want a ballpark estimate, you can get a quick and easy over-the-net home valuation by just giving us some basic information about your house. Just go here to submit your info and we’ll send you your home valuation within 48 hours.

 

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North Shore’s Top 10 Luxury Home Sales 1n 2013

North Shore Chicago’s top 10 luxury home sales of 2013 ranged in price from $4,069,772 to $12,700,000, with a median price of $5,028,626. That’s up 11% from last year’s median price for the top ten, but still 16% below the 2006 median price of $6,020,000.

Five were in Winnetka, three in Lake Forest, and one each in Glencoe and Evanston.

While eight of the top ten luxury homes were on the lakefront in 2012, only four of them were waterfront properties this year.

Looking for luxury property for sale? You can search currently listed upper bracket homes here.

#10. 581 Ingleside Park, Evanston – $4,069,772

Top 10 Luxury Homes:581_InglesideThis is the second time in a year and a half that this home has changed hands. It sold for $3,800,000 in July 2012 and was listed again in September of 2013. On a private acre with 185 feet of frontage and lake views from every room the house has five bedrooms and four and a half baths plus a guest suite over the three car garage. It sold for 97% of list price in just 9 days.

#9. 471 Hastings Rd., Lake Forest – $4,500,000

Top 10 Luxury Homes: 471_HastingsBuilt in 2007, this sixteen room estate sits on almost two acres and has all the bells and whistles: gourmet kitchen, two master suites, elevator, home theater, wine cellar, billiard room, pool, sport court and four car garage. The home sold in 42 days for 91% of list price.

#8. 1150 Pelham Rd., Winnetka – $4,675,000

Top 10 Luxury Homes:1150_Pelham

On a private lane in the heart of Winnetka this home was built in 2007 and has spectacular grounds with a pool. It has seventeen rooms, six bedrooms and 6.2 baths. It sold in just 11 days for 96% of list price.

#7. 1015 Spring Lane, Lake Forest – $4,950,000

Top 10 Luxury Homes:1015_SpringThis Georgian home was custom built in 2006 across from Forest Park and Lake Michigan. It has 17 rooms, 6 bedrooms and 8 baths. It sold in two days for 93% of list price.

#6. 920 Hill Rd., Winnetka – $5,000,000

 

Top 10 Luxury Homes:920_HillThis grand Winnetka home features expansive rooms, high ceilings, four fireplaces, two porches and wonderful architectural details throughout. It sits on 1.6 gorgeously landscaped acres.

#5. 901 E. Rosemary Rd., Lake Forest – $5,057,253

Top 10 Luxury Homs:901_E_Rosemary

Built in 1914, this historic sixteen room home on four lush acres has been completely renovated. It home sold in 76 days for 85% of list price.

# 4. 36 Woodley Rd., Winnetka – $5,300,000

Top 10 Luxury Homes:36_Woodley

A two year redesign brought this 1934 estate into the 21st century, maintaining its architectural integrity while updating and streamlining it. It lingered on the market for over a year and finally sold for 76% of its original list price.

# 3. 607 Longwood Ave., Glencoe – $8,000,000

607_Longwood_lakefrontThis fifteen room French Provincial home was custom built in 2007 to take full advantage of its breathtaking views of Lake Michigan. It sold in two days for full asking price.

 

# 2. 175 Sheridan Rd., Winnetka – $12,250,000

Top 10 Luxury Homes:175_Sheridan_front

This stunning villa was built in 1928 and renovated in 2007. It has eighteen rooms, a six car garage, his and her offices  and views from every formal room. Award-winning landscaping is by Mariani, including pool and terraces. It sold in 121 days for 88% of list price.

#1. 319 Sheridan Rd., Winnetka – $12,700,000

Top 10 Luxury Home: 319_Sheridan_front

This 1.5 acre lakefront property was the builder’s own home. With 15,000 square feet of living space and seventeen rooms, it has every amenity you can think of: wine cellar, two wet bars, gourmet kitchen, media room, exercise room elevator, smart home system. Outside is an oversized pool, cabana, fire pit and wood deck leading to 137 feet of sandy beachfront. It was originally listed in March 2012 for $16,875,000 and ultimately sold in June 2013 for 75% of its original list price.

If you’d like to see what upper bracket homes are currently available on the North Shore, you can search here. Or give us a call at 847-881-6657 and let us know what you’re looking for. Often we know of homes for sale that are not listed on the MLS. If it’s out there we’ll find it for you!

North Shore Views is the most comprehensive online source for North Shore Chicago real estate and community information. Whether you are looking for market statistics, homes for sale or local events, North Shore Views has it all at your fingertips. Browse information regarding our communities, market data, luxury homes, lakefront property, schools and what you should know about making the move to the North Shore.

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North Shore Real Estate Data – November 2013

North Shore Market Update – November 2013 vs. Year Ago

Nov2013 dataNorth Shore home sales were down 2% in November vs. last year, and down 17% from last month, due to seasonality. Results were a mixed bag across communities, with some showing nice gains and others posting decreases.

The median sales price for the North Shore was up a healthy 27% over last year and up 9% from last month. Only Evanston posted a price decline vs. last year (and Kenilworth, but this was based on one sale). Homes that closed in November sold at 95% of list price (up from 93% last year) and 92% of original list price (up from 89% last year).

Market time continued to decline, with days on market now averaging 104 (3.5 months). Wilmette was the only village where market time increased, but it has consistently had a lower average market time due to abnormally low inventories here.

Now that we are seeing prices appreciate again, are you wondering what your North Shore home is worth? You can get a quick and easy over-the-net home valuation by just giving us some basic information about your house. Just go here to submit your info and we’ll send you your home valuation within 48 hours.

 

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North Shore Market Update – October 2013

North Shore Market Update – October 2013 vs. Year Ago

North Shore Market Data-October 2013There continues to be pent up demand for real estate on the North Shore, as evidenced by increases in sales and prices and decreases in market time.

Home sales on the North Shore were up 10% in October over last year while the median sold price increased 5%. Homes sold for 94% of list price, on average. 13% of homes that closed in October sold at or above list price.

Market time declined 26% to 3.5 months on average. Several towns are well below that: Kenilworth, Glencoe, Evanston and Wilmette. Inventory remains quite low in the $900,000 and below price ranges. Sales are strong up to $1,500,000 but uniformly weak above $2,000,000.

Though rising prices are cause for optimism, we need to keep in mind that we are still well below the peak prices  of 2007. Year to date the median sales price is 24% below 2007.

Now that we are seeing prices appreciate again, are you wondering what your North Shore home is worth? You can get a quick and easy over-the-net home valuation by just giving us some basic information about your house. Just go here to submit your info and we’ll send you your home valuation within 48 hours.

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