Real Estate Market

Real Estate Update from Allyson Hoffman

North Shore Suburban Chicago Monthly Update

 


North Shore Suburban Chicago Monthly Update

The Numbers are the Numbers but … but what is really happening in the market is clearly showing a change from the late fourth quarter of 2011. Buyers are out and looking – a combination of investors who think we are near or at the bottom, first timers with financial ability who recognize the benefits of low prices and rates, savvy move-up families who may lose in the sale of their current home while making that up in a higher priced buy, downsizers who have nothing really to lose and can rebuy at reduced costs today and a range of others. So the number of buyer prospects swarming the somewhat lower inventory is producing sales. Some of them are occurring quickly after listing and even some more in multiple bids. The question is why? That is simply answered by looking at what is NOT up. What is not up? Neither PRICES nor the INTEREST RATES!

The competitive distress sales in the market, comprising a market within the market and accounting for nearly 30% or one of every three homes sold, has forced the remaining sellers to compete. And they are! At least the successful sellers are. So many more homes are entering the market at competitive pricing with advance effort invested in preparing the property for sale. Thus, many of the listings today are now much more appropriately priced and they are showing better. When this fact is coupled with the low cost of borrowing for mortgages, the result is what we are seeing now. Buyers are buying.

So if you have been thinking of doing one, the other or both, this may be the time to take advantage of this perfect storm. If you’d like a customized review for your situation based upon these conditions, please feel free to contact me to review your property and circumstances and/or generate reports tailored to your community, your area, price range or the type of home you currently own. I can be reached by phone or email at allyson@allyson.com. Alternately, if you would simply like to review listings for Chicago’s North Shore, North or Northwest Suburbs or anywhere in the Chicago metro area, please visit http://www.realestatenorthernillinois.com/Community-Map.

By the numbers -- here’s your statistical North Shore summary snapshot for the end of January 2012 as compared to 2011:

  • Market time for detached homes was only 180 days as compared to 227 in 2011; conversely attached homes increased to 224 days as compared to only 193 in 2011
  • Weeks required to sell current inventory significantly jumped up from 46 weeks at the end of December to a longer 68 weeks at the end of January, a possible result of the after-the-holidays listing spree
  • Correspondingly, the ratios of homes sold compared to homes available increased in the same proportion as the number of weeks required to sell the inventory to 16:1 (sixteen homes available to each one that sells) from December’s lower 11:1
  • The percentage of the numbers homes sold in distress relative to all sales maintained just slightly above December’s 29% at 29.7% being either a short sale or foreclosure (of those sales 41% were short sales and 59% were foreclosures)
  • As compared to January 2011, new listings and listings back on the market held steady at just under 7.5% fewer meaning that less new listings have entered the market inventory this year
  • The number of Closed Sales, in numbers, edged out January 2011 by roughly 3%
  • Pending sales remain under the numbers from 2011 at roughly 4.5% less – the sixth consecutive month showing this trend
  • 13.5% less properties went off market without selling as compared to last year which translates to more success for those listings (which are also smaller in number than a year ago)
  • Price adjustments, a common event needed to sell properties in a competitive buyer’s market, was reduced by 11.1% as compared to 2011 – again this shows a trend to a somewhat greater likelihood of successful sales.

Nearly one-third of our listings and sales are distressed. Might you be someone facing this possibility or curious about how it works and interested in buying? I am a Certified Distressed Property Expert, better known today as a CDPE. Coupled with a Short Sale Foreclosure Resource certification (SFR), I am specifically quipped to help both buyers and sellers leverage the best results and manage the complexities of either buying or selling in a distressed environment. We find these types of homes and properties in all sizes, all styles and all types of condition, locations and price ranges. We don’t always find these sales easy, but they can go much more smoothly with a strong, skilled team of professionals including agents, attorneys and negotiators who are knowledgeable and understand how to prepare and what to expect. Please feel free to call or email allyson@allyson.com for additional information.

 

Welcome to 2012 – may this be a good year for all!

Northern Shore Suburban Chicago Attached Housing
Date
New
Listings
Closed
Sales

Average
List
Price

Average
Closed
Price
Average
Market
Time

12 Mo
Price
Change

1/12
251
95
$241,643
$202,989
224
-10.00%
1/11
251
74
$263,992
$225,851
193
Northern Shore Suburban Chicago Detached Housing
Date
New
Listings
Closed
Sales

Average
List
Price

Average
Closed
Price
Average
Market
Time

12 Mo
Price
Change

1/12
465
165
$724,432
$613,079
180
12.00%
1/11
527
169
$651,119
$545,703
227


*This representation is based in whole or in part on data supplied by various Participants in the MREDLLC for the period 1/1/11 through 12/31/11. MREDLLC does not guarantee nor is it in any way responsible for its accuracy. Data maintained by the MREDLLC may not reflect all real estate activity in the market.

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 designed specifically for your home, a home that interests you or for a personalized new home search profile that matches your unique criteria.

Interested in knowing what the market is like? Click Here to view the latest quarterly median home price for your market, and its percentage change from the previous quarter.

THE DEBT PAY-DOWN

If your New Year’s resolution was to reduce debt, several strategies can help accomplish that goal. But before implementing any strategy, understand the terms of various debt agreements, including any penalties for prepayment, and consult with a tax or accounting professional, say experts with the American Institute of Certified Public Accountants.

Make minimum payments. Credit card companies require borrowers to pay the minimum balance. Paying less than the minimum can result in penalties, increased interest rates and default.

Make additional mortgage payments. To pay down the principal amount faster and reduce total interest paid, consider making additional payments. By paying one-half of the regular monthly mortgage payment every two weeks, for example, you will make the equivalent of 13 monthly payments for the calendar year and reduce the total interest on the loan.

Pay off higher-interest-rate debts first. After making the required minimum payments for each debt, allocate any extra dollars to the debt with the highest interest rate. Or:

Pay off the lowest debt amount first. According to financial expert Dave Ramsey, paying down the lowest balances first, regardless of interest rate, gives borrowers a sense of accomplishment. As each small debt is paid off, it becomes easier to stay motivated to pay down larger debts.

Consolidate loans. It may be possible to pay off multiple high-interest debts by getting a debt consolidation loan, which is often offered at a lower interest rate.

Finally, avoid tapping into a 401K, emergency fund or equity line of credit to pay down debt. Once debts are paid off, put away credit cards, and pay cash for what you need most. With patience, vigilance and a sound action plan, cash-strapped borrowers can learn to live debt-free.

NEIGHBORHOOD WATCH

The hardest part about moving may be selecting a neighborhood that best suits your lifestyle. Start by thinking about what is most important to you and your family. For example, do you prefer a quiet residential area or do you want to be near busy nightlife? According to www.Movers.com, buyers should consider several key factors when searching for the right neighborhood.

Safety — For most households, safety is the most important factor, so check out crime rates of potential neighborhoods via local government websites and the U.S. Census Bureau website, www.census.gov.

Amenities — Determine the location of doctors’ offices, hospitals, schools, banks and grocery stores. It may be helpful to walk around the neighborhood to become familiar with local businesses and their proximity to your potential home.

Education — If you have school-aged children, visit websites of individual school districts to see what services they offer, or contact members of the school board or principal for more information.

Commuting/Public Transit — How far are you willing to commute to work or school? A home close to friends and family might mean a longer commute to work. If you rely on public transportation, find out where bus stops and train stations are located in your desired neighborhood. Review bus and train schedules to determine if they meet your travel needs.

Property ValuesResearch current housing values in the area, local foreclosure data, and future development plans. These could affect home values in the future.

Cost of Living — Compare the cost of living of your desired neighborhood with your current location. Cost-of-living calculators, such as the one provided on Bankrate.com, can help determine if a neighborhood meets your financial needs.

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:

http://www.realestatenorthernillinois.com/blog.asp

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Contact Information

Photo of Allyson Hoffman Real Estate
Allyson Hoffman
RE/MAX Villager
1245 Waukegan Road
Glenview IL 60025
847-310-5300
Fax: 847-400-0881
Push To Talk

Licensed in the State of Illinois

Allyson Hoffman of RE/MAX Villager provides real estate services in 
Chicago's North Shore, North and Northwest Suburbs providing information on real estate and homes for sale in this Northern Illinois area.
 I list and sell residential real estate including freestanding homes, condominiums and townhomes as well as investment properties, vacant land and lots for sale in the
North Shore, North and Northwest Suburban Chicago, Illinois area in the northern Illinois.

 

This website is maintaned by Kim Hughes - Real Estate Virtual Assistant