Purchasing a home is partially an emotional decision (do I LOVE it!!!????), but also a financial/business decision (can I afford it, is this property going to make money for me over time?). Does it make sense for you financially to sign that purchase contract? Is this a home in an area that can reasonably be expected to increase in value over time?
One way we can make some judgments on the financial side of a purchase agreement is to study the data on home sales for the area that interests you. Because this blog focuses on the North Shore, here are some critical stats for these communities: (information published by North Shore/Barrington Board of Realtors)
APPRECIATION RATE 2006 vs. 2005/MEDIAN SALE PRICE 2006/#UNITS SOLD in 2006
Evanston: 10.5%/$550,000/453
Wilmette: 8.14%/$810,000/335
Kenilworth: -20.28%/$1,120,000/25
Winnetka: 10.2%/$1,394,000/197
Northfield: -8.54%/$750,000/47
Glencoe: -9.38%/$1,051,250/110
It is important to note that every one of these communities saw significant increased volume in units sold during the years 2003 and 2004, when the real estate market was "hot." When we look at the rate at which homes are selling now (the absorption rate), the difference is startling.
As of February 2, 2007, the absorption rates (the length of time it would take to sell every single property that is currently on the market, without any new properties coming on market) are:
January 2007 - 69 weeks
December 2006 - 48 weeks
November 2006 - 60 weeks
The average market time for North Shore homes as of February 2, 2007 are:
January 2007 - 145 days
December 2006 - 136 days
November 2006 - 115 days
October 2006 - 105 days
September 2006 - 102 days
August 2006 - 90 days
Interpretation of these statistics is not for the faint of heart! Seriously, it is imperative that a buyer or seller of real estate speak with a Realtor to explore the meaning of these numbers for the specific market that is of interest to that person. Each market is different, and the inside information comes from the agent(s) who work in that market.
Contact us to explore the North Shore market and how you can optimize your selling or buying needs here.
One way we can make some judgments on the financial side of a purchase agreement is to study the data on home sales for the area that interests you. Because this blog focuses on the North Shore, here are some critical stats for these communities: (information published by North Shore/Barrington Board of Realtors)
APPRECIATION RATE 2006 vs. 2005/MEDIAN SALE PRICE 2006/#UNITS SOLD in 2006
Evanston: 10.5%/$550,000/453
Wilmette: 8.14%/$810,000/335
Kenilworth: -20.28%/$1,120,000/25
Winnetka: 10.2%/$1,394,000/197
Northfield: -8.54%/$750,000/47
Glencoe: -9.38%/$1,051,250/110
It is important to note that every one of these communities saw significant increased volume in units sold during the years 2003 and 2004, when the real estate market was "hot." When we look at the rate at which homes are selling now (the absorption rate), the difference is startling.
As of February 2, 2007, the absorption rates (the length of time it would take to sell every single property that is currently on the market, without any new properties coming on market) are:
January 2007 - 69 weeks
December 2006 - 48 weeks
November 2006 - 60 weeks
The average market time for North Shore homes as of February 2, 2007 are:
January 2007 - 145 days
December 2006 - 136 days
November 2006 - 115 days
October 2006 - 105 days
September 2006 - 102 days
August 2006 - 90 days
Interpretation of these statistics is not for the faint of heart! Seriously, it is imperative that a buyer or seller of real estate speak with a Realtor to explore the meaning of these numbers for the specific market that is of interest to that person. Each market is different, and the inside information comes from the agent(s) who work in that market.
Contact us to explore the North Shore market and how you can optimize your selling or buying needs here.
