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Real Estate Update from Allyson Hoffman

Demand Remains Strong in North Shore and Barrington Housing

 


 

 

Housing Prices Dip

Northbrook, IL – May 24, 2018 – Housing prices fall as the second quarter starts and demand for homes remains strong, following last year’s trend.  Housing data for April shows the number of new listings rose slightly while closed sales dipped compared to the same period in 2017, as well as houses under contact.  The largest decrease was in the average sales price, according to the North-Shore Barrington Association of REALTORS® (NSBAR).

NSBAR’S latest data shows new listings increased 15.0 percent to 1,521, down from 1,323 a year ago. The number of closed sales decreased 2.5 percent to 427 for April 2018 compared to 438 in April 2017.  The number of homes under contract (contingent and pending) decreased 2.2 percent. The average sales price is down 3.1 percent in 2018 at $668,410 in homes sold in April compared to $689,251 for the same period last year.

The median sales price fell 2.7 percent in April, down to $525,500, compared to $540,000 during the same period in April 2017, and the average listing price decreased 3.1 percent with the percentage of the original list price decreasing to 94.8 compared to 94.9 in April 2017.

The inventory of homes in the North Shore and Barrington area decreased by 3.8 percent in April, compared to a year ago, going from 3,298 to 3,173. The month’s supply for sale is equal at 7.7 percent compared to 7.7 months in April 2017.

Across the area region, year-to-date 2018 housing market highlights include:

- Year-to-date, Year-to-date, 1,174 detached single-family homes sold in the North Shore-Barrington market.  The number of communities in the region reporting an increase in home sales for April was slightly less than in April 2017.  The median sales price decreased less than 0.01 percent on sales in the North Shore and Barrington areas.  Nearly all the communities have either minor gains or losses in their median price compared to April 2017.         

-  Barrington area – 144 detached single-family homes sold year-to-date, down 17.2 percent compared to 174 detached single-family homes sold in April 2017.  The median sale price in April 2018 was $450,000, down 10. percent compared to $500,000 a year ago.

-  Deerfield – 93 detached single-family homes sold year-to-date, staying at 0.0 percent compared to 93 detached single-family homes sold in April 2017.  The median sales price in April 2018 was $550,000, down 12.3 percent compared to $580,000 a year ago.

 -  Evanston – 108 detached single-family homes sold year-to-date, down 2.7 percent compared to 111 detached single-family homes sold in April 2017.  The median sale price in April 2018 was $464,750, down 1.1 percent compared to $470,000 a year ago.

-  Golf-Glenview – 145 detached single-family homes sold year-to-date, down 5.4 percent compared to 158 detached single-family homes sold in April 2017.  The median sale price in April 2018 was $562,500, up 8.6 percent compared to $518,000 a year ago.

-  Lake Forest – 67 detached single-family homes sold year-to-date, up 21.8 percent compared to 55 detached single-family homes sold in April 2017.  The median sale price in April 2018 was $850,000, up .01 percent compared to $849,000 a year ago.

-  Northbrook – 100 detached single-family homes sold year-to-date, down 16.0 percent compared to 119 detached single-family homes sold in April 2017.  The median sale price in April 2018 was $478,000, down 11.5 percent compared to $540,000 a year ago.

-  Skokie – 130 detached single-family homes sold year-to-date, up 7.4 percent compared to 121 detached single-family homes sold in April 2017.  The median sale price in April 2018 was $350,000, up 9.5 percent compared to $319,500 a year ago.

-  Winnetka – 59 detached single-family homes sold year-to-date, down 24.4 percent compared to 78 detached single-family homes sold in April 2017.  The median sale price in April 2018 was $1,167,500, up 7.4 percent compared to $1,087,500 a year ago.

Sales and price information is generated by NSBAR with Midwest Real Estate Data (MRED).

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The North Shore-Barrington Association of REALTORS® (NSBAR) represents more than 3,700 practitioners in residential and commercial real estate. Since 1919 it has been the area’s leading advocate for private property rights and a healthy real estate environment. Visit NSBAR online at www.NSBAR.org.

Based on Census Tract data, MRED defines the North Shore as including Bannockburn, Deerfield, Evanston, Glencoe, Glenview, Golf, Highland Park, Highwood, Kenilworth, Lake Bluff, Lake Forest, Lincolnshire, Lincolnwood, Mettawa, Morton Grove, Northbrook, Northfield, Prairie View, Riverwoods, Skokie, Wilmette and Winnetka.

 

Please note that the numbers noted in the aforementioned links to Lake and Cook County Market Reports apply to all properties of all types and sizes throughout Cook and Lake Counties and that numbers may change when looking at a specific town, neighborhood, property type or even the type of sale.  Should you desire an overview designed for your home or area or even a home in an area you are considering, this information is available.  If I can assist you with information to help you to determine if now is the time for you to consider buying a new home or selling your current residence in Chicago’s North Shore, North or Northwest suburban areas, please let me know and I would be delighted to arrange a time to review your situation and recommend a plan tailored to your personal circumstances.

Additionally, if you are considering buying or selling or, alternately, if you are just interested in the property value of your home or a home that interests you, please feel free to send an email request to me at allyson@allyson.com and I will gladly arrange to meet with you and/or set up a personalized webpage with data generated for your home, any home that interests you or for a personalized new home search profile that matches your unique criteria.

Buyer’s or Seller’s Market: Which is it and How to Tell?

The inevitable fluctuations in the supply of homes for sale and the demand for them make the real estate market much like your favorite childhood playground seesaw with rare moments of true balance.  To better understand how this analogy applies in the real estate world, here is a quick review regarding the varied types of real estate markets you can encounter and what they mean.

 1. Buyer’s Market - A buyer’s market occurs when there are more homes for sale than there are buyers actively looking to purchase. This can be a time for buyers to potentially save some money by capitalizing on the abundance of motivated sellers who really need to move. In a buyer’s market it is not uncommon for sellers to reduce the price of their homes or offer other incentives to sell their property in an effort to secure a contract from a somewhat scarce buyer population.

2. Seller’s Market - A seller’s market manifests when there are more buyers searching for homes than properties for sale. Sellers are typically able to sell their homes for top dollar in very short periods of time, often receiving multiple offers that drive the purchase price higher than the list price of the home.  Moreover, buyers frequently will make concessions to sellers in an effort to present a more appealing proposal than any competing offer.

3. Balanced Market – Balanced markets exist when current inventories are sufficient to satisfy roughly six months worth of buyer demand and homes sell reasonably close to their listing prices.

4. Stratified Market – A stratified market occurs when segments of the same market area exhibit divergent levels of inventory relative to demand.

While these explanations are relatively straight forward, the real estate market often is not. This is because real estate markets can be applied to an entire city, a neighborhood, by price range or even different types of properties. Thus, it is not uncommon to see a seller’s market in lower, entry-level price ranges while a buyer’s market exists concurrently at a higher price point.

Some agents might advise to refrain from selling your home during a buyer’s market. But in many cases selling won’t have a negative impact on your portfolio if you plan to reinvest in a new home. What you may give up on the sale of your current home, could likely be recaptured on the purchase price of your next home.

Working with an experienced real estate agent should ensure that your real estate approach is appropriate for both the current market and your real estate goals. For additional information regarding the buying or selling process, feel free to contact me today for a consultation. I will be happy to answer any questions you may have, help you to find a new home or determine the value of your existing property.

Image courtesy of mediamodifier/pixabay.com

The House Didn’t Appraise – Now What?

Whether you are buying a home or selling one, it is likely that a home appraisal will be requested. If you are the buyer and securing a home mortgage on the property, your lender will almost inevitably require an appraisal to confirm the value of the home and assure that the bank doesn’t lend more than the home is worth.

When an appraisal comes back lower than the purchase contract price, this situation will limit the available funds from the lender and cause a cash shortfall that must be managed for the transaction to proceed.  Several possible solutions exist if the buyer still wants to buy and the seller still wants to sell the home, These choices include the following options:

 1. The buyer can pay the difference by contributing additional down payment funds to compensate for the decreased contribution from the lender.

 2. If the buyer is unable or unwilling to bring more cash to the transaction, the seller can offer to, or the buyer can ask the seller to, sell the home for the appraised value. Depending on how long the home has been on the market, the seller may be amenable to this resolution.

 3. Probably the most common alternative involves renegotiating the purchase price of the home with both the buyer and seller making concessions that allow the sale to move forward.  The seller accepts a somewhat lower price and/or the buyer may also add down payment funds.

 4. Occasionally, a reappraisal can be requested, but the outcome is not guaranteed and can, in fact, ultimately support the original findings. 

Should the seller decline to sell the home for the appraised value or renegotiate the price, the buyer can decide to terminate the sale. Some sellers can then elect to take their home off the market, wait for a cash buyer or hope the next appraisal reflects the value they’re seeking which may require waiting for market values to increase.  Regardless, each appraisal reflects just one opinion of the value and multiple appraisers evaluating the same property using the same comparables can arrive at differing conclusions.

Should you be faced with a low appraisal, consult with your real estate agent, attorney and/or lender for advice on how to address the situation.  There is no single right or wrong answer. Keep in mind that market values are fluid and can rise or fall based on changing market conditions.  Because real estate is local, check the current housing market in your area to assess the pricing trends before making any firm decisions on whether or not to proceed.

When in doubt, always seek the guidance of an expert whose knowledge should be a valued resource, especially if this is your first home purchase. For additional information regarding the buying, selling or appraisal process, feel free to contact me today for a consultation. I will be happy to answer any questions you may have, help you to find a new home or determine the value of your existing property.

Image courtesy of nikcname/flickr.com

 

 

 

The Northern Suburbs of Chicago Blog discusses new items of interest regularly. Topics range from those related to real estate and community highlights to local events of interest or anything personal or business related that might be perceived as worthwhile information for public knowledge, discussion and/or use. Feel free to subscribe and receive textual updates on your iPhone, iPod and/or iPad! You can always check out the latest updates for the Northern Chicago Suburbs at:

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Allyson Hoffman
RE/MAX Villager
1245 Waukegan Road
Glenview IL 60025
847-310-5300
Fax: 847-400-0881

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Allyson Hoffman
RE/MAX Villager
1245 Waukegan Road
Glenview, IL, 60025

(847) 310-5300
Allyson@Allyson.com

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