Thursday, December 21, 2006

Where's the North Shore real estate market headed?

Conversations at holiday parties on the North Shore have frequently focused on what the new year will bring in regard to real estate values and how that will impact sales.

Taking a look at some statistics, here are some interesting thoughts to consider:

  • Each village is experiencing different market trends
  • The current inventory of homes on the North Shore is much larger than in 2005
  • From village to village, total sales in 2006 range from unchanged to down over 20% compared to 2005

Many are asking how the current economic climate will affect home sales and prices during the coming spring market period. Does anyone have any thoughts on this topic?

10 comments:

Anonymous said...

We have a 3 y.o. daughter and want to get her established in a community before she starts elementary school. We also have two dogs (labs). Where can we get a reasonable back yard and great schools for under $900,000?

Anonymous said...

Jenny,
Take a look in Wilmette. Prices are decent and you will probably have a few choices under $900K. There are several good schools to choose from and there is a nice 'downtown' area with lots of shops and a movie theater.

Anonymous said...

I have heard that prices in Glencoe have become much more affordable in the past year. Is that true, and why?

Anonymous said...

I would like to move to the North Shore within a year or so, but what I cannot learn from agents at Sunday open houses is a good understanding of the overall types of homes available on the North Shore - is there much new construction? Or is the market filled primarily with resale properties, and how old are they, are they in good repair? Which is better, old or new homes? So much to think about!

Anonymous said...

The housing stock is larger than it was last year, and sales are down 20%. One would assume that this means prices will be coming down, possibly swiftly. Can anyone a) point me to villages on the north shore where prices will likely remain stable/continue to increase in order to protect my investment if I buy a new house, or b) should I just wait now for the prices to continue to come down? given the above facts, I'm tending toward the latter.

North Shore Home Advisors said...

It would be impossible to accurately predict the future value of homes, but historically, North Shore homes have been a great investment over time. Aside from the obvious reasons for value (i.e. location, quality of life issues and interesting architecture) there is also the issue that the supply of homes is essentially limited because there is little room for new development. Therefore, the only new home stock is being provided through teardowns. Although there is some controversy regarding the teardown phenomena, much of the homes being replaced are older homes which are not necessarily good candidates for renovation.

Anonymous said...

I am interested in living in Evanston because I went to school there. I can't afford a single family. Are there any co-ops in that area, or would I need to be looking at a condo? Is the condo market soft currently?

exmish said...

I work with exchange students who typically attend school at Evanston. Are there any neighborhoods, subdivisions, etc. that you would -not- recommend as being appropriate for them (e.g. mostly older residents and few people their own age, high population of non-native English speakers)?

Anonymous said...

Is there a time of year that tends to be more of a buyers' market on the North Shore, other than what most areas' are (i.e. fall, start of school year, etc.)?

North Shore Home Advisors said...

Some "overdue" answers to comments left by "anonymous" (2) and "s":
First, concerning co-op vs. condo prices in Evanston- YES, co-ops are alive and well in Evanston, and most of them provide a huge purchase price advantage over condominiums. The path to purchasing a co-op is quite different from that of a co-op, however, and a prospective buyer is well advised to work with a buyer agent who is very knowledgeable about co-ops. Everything from downpayments, to mortgage options, to Board approvals and real estate attorney recommendations requires specific knowledge.
Second answer today is for "s" concerning foreign exchange students: at least one of our North Shore Home Advisors has direct experience with high school exchange student placement and understands the system (albeit with New Trier High School, not Evanston High School). Typically the students are placed in a local family host home by the agency that has arranged the exchange placement. As licensed real estate agents, we are not called upon by exchange agencies to give advice on community neighborhoods or demographics. Indeed, we are mandated by law and our national code of ethics to NOT give any advice on these topics; to do so could rightly be interpreted as a violation of fair housing laws. In the case of foreign exchange students, the responsibility for finding appropriate and comfortable housing must rest squarely on the shoulders of the exchange agencies.
And finally to "anonymous" #2 concerning marketing "timing" for buyers - typically the buyers do not have much of an advantage at any time of the year on the North Shore, unless the entire market has turned into a buyers' market, such is now the case in the entire Chicagoland area. Other than that, the usual "busy" times of the year put pressure on both the sellers and the buyers to find the right transaction partner and get their deal "done." These busy times are typically starting in February/March and taper off dramatically in October and through the rest of the winter.

Thanks for all these great questions.

About Us

North Shore suburbs, Chicago, Illinois, United States
We are The North Shore Home Advisors. Our goal is to help lead you through the maze of villages called the North Shore in an attempt to help you to make an educated decision regarding which of these villages best fits your needs. We will provide you with general information, resources,and guidance. We will discuss pre-school options, school districts, park district facilities, and places to have fun, eat and shop. We'll share insights regarding each of these villages. We are five experienced real estate professionals who have all lived in these towns for many years. We will discuss local real estate trends and their effect on pricing and inventories. Most important,we will be soliciting questions, comments and feedback from you. This will be a forum for exchanging thoughts and ideas. Please join us as we help you make your way through this exciting transition from city to suburban living. We can provide a great deal of value for you.