Glencoe-North Shore Market Trends: Update June-July2012

Steady, stabilizing Chicago-North Shore area real estate data just released for May-2012, shows home sale performance was the best since 2007 figures.  Year-over-year median sales prices moved into positive territory in the Chicago area for the first time in more than four years, per figures released by the Illinois Association of REALTORS®.

Additionally an ongoing incentive for North Shore buyers, the monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Shore-Central region was 3.83 percent in May 2012, down from 3.89 percent during the previous month, according to the Federal Home Loan Mortgage Corporation. Last year in May it averaged 4.67 percent. Additional mortgage rate detail for the area can be seen in the NSBAR-North Shore-Barrington Association of Realtors figures below (click to enlarge):

More than half of Illinois counties reporting (59 of 100) showed year-over-year home sales increases in May 2012. Fifty-one (51) counties including Chicago’s North Shore area showed year-over-year median price increases including Cook, up 3.0 percent.

Dr. Geoffrey J.D. Hewings, Director of the Regional Economics Applications Laboratory of the University of Illinois states: “For the first time since the recession began, median house prices are increasing on an annual basis and are forecast to continue this trend through the end of the summer. The weaker than expected job figures for the last few months appear not to have affected the housing market; inventories are down, sales volumes are up and the pending sales index is at its highest point since 2008.” Statistical data created by NSBAR supports the current trend of decreased inventory with increased demand for North Shore real estate. The figure below represents the ratio of houses for sale volume vs. the number of North Shore homes sold or sales volume. The higher the S/D (supply/demand) ratio, the more supply there is in relation to demand (click to enlarge):

The statewide home sales figures (including single-family homes and condominiums) in May 2012 totaled 11,984 homes sold, up 22.1 percent from 9,815 home sales in May 2011. This was the best May performance since 2007 when 14,493 homes were sold in Illinois. Specifically on Chicago’s North Shore first time home buyers, investors, as well as buyers making a move up are experiencing ongoing low interest rates and exceptional pricing.  Rental supply of homes appears to be dropping, with the rate of rent increasing. Once indecisive buyers are making a move and getting back into the real estate market, ready to buy NOW!

Find additional Illinois housing stats data and the University of Illinois REAL forecast at www.illinoisrealtor.org/marketstats.

Sales and price information is generated by Multiple Listing Service closed sales reported by 31 participating Illinois REALTOR® local boards and associations including Midwest Real Estate Data LLC data as of June-July 2012 for the period May 1 through May 31, 2012. The Chicago PMSA, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.

Use our North Shore Coldwell Banker Residential Real Estate office as a source of information and a guide for real estate statistics, reports, analysis, trends, outcomes, and overall insight for North Shore markets.  We are located at 640 Vernon Ave in downtown Glencoe, Illinois 60022. Any of our top performing real estate professionals can assist you.

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Real Estate Wisdom From Dad-North Shore Real Estate

In the spirit of Father’s Day on Chicago’s North Shore and real estate near and far; advice that may come from Dad regarding life, money and real estate investing..

Do the math. Then do it again.. home purchase prices, various appreciate rates and rental income scenarios, interest rates, opportunity costs, vacancy buffers, landscaping and maintenance, insurance — every single line item goes into the hopper.

Have an exit strategy — and your backup A,B,C plans — before you buy. If you’re buying a North Shore home or any home to live in, Dads might say not to even start your house hunt without knowing how long you expect to be there and what your next move will be. In this way, you can be sure to buy a home that will work at least as long as your plan A is in effect. Of course, even the best-laid plans can be foiled by forces beyond your control, so Dads are big on putting plans B, C and on down the alphabet in place upfront, and not making the buy until you have accounted for these various outcomes.

Buy it right. Whether you’re hoping to buy a personal residence that appreciates over time or you’re investing in the market, Dads may say to buy at a price you can afford.

You won’t win them all. Striving for a perfect investment record of profits on top of profits is great, but it belies the reality of life that little is perfect. The more mature approach, a Dad’s approach, is to be grateful for the lifestyle of a homeowner and the returns of a real estate investor, understanding that the occasional investment may not go as planned. Having a seasoned real estate professional as a guide will help. More info HERE

Happy Fathers Day!

Top Tips for Pricing Your Home to Sell: North Shore Real Estate

One of the single most important factors to consider when selling North Shore real estate or any property is the home price tag: how much your house is worth. It’s part art and part science, and often no two agents price property the same way. Having an experienced, top performing North Shore real estate agent as a guide certainly provides an edge, but knowing some basics will help shed light:

1. Area competition should be examined. Just how many other North Shore houses are for sale in your area? Are you competing against new or newer homes?

2. Remember comparables. What have other homes in your North Shore neighborhood sold for recently? How do they compare to yours in terms of size, upkeep, and amenities?

3. Opt for an appraisal. For a few hundred dollars, a qualified appraiser can give you an estimate of your home’s value. Be sure to ask for a market-value appraisal. To locate appraisers in your area, contact The Appraisal Institute or ask your North Shore REALTOR® for some recommendations.

4. Advice from a lender. Since most buyers will need a mortgage, it’s important that a home’s sale price be in line with a lender’s estimate of its value.

5. Accuracy is key. Studies show that homes priced more than 3 percent over the correct price take a longer time to sell.

6. Contingencies should be considered. Do you have special concerns that would affect the price you’ll receive? For example, do you want to be able to move in one month or four months?

7. Think about what you’ll take. It’s critical to know what price you’ll accept before beginning a negotiation with a buyer.

Feel free to visit our Coldwell Banker Residential Real Estate office for resources concerning your homes worth, or lender options. We are located at 640 Vernon Ave in Glencoe, Illinois-60022, part of Chicago’s North Shore community. You can also request an evaluation at www.gloriamatlin.com

Real Estate Outcomes May2012: Chicago’s North Shore

Property Sales

North Shore real estate data for May 2012 shows, property sales were 9.1% higher than sales volume last year. May 2012 sales were at their lowest level overall compared to May of 2011 and 2010. May YTD North Shore sales ran       -21.7% behind last year’s year-to-date sales data reports.

Prices

The Median Chicago North Shore Sales Price in May was $909,500, down -4.3% from $950,000 in May of 2011 and up 18.7% from $766,500 last month. The Average Sales Price in May was $954,375, down -28.2% from $1,328,833 in May of 2011 and up 5.2% from $907,227 last month. May 2012 ASP (average sale price) was at a mid range compared to May of 2011 and 2010.

Inventory & MSI

The Total Inventory of North Shore Properties available for sale as of May was down -27.5% from May of last year. May 2012 Inventory was at the lowest level compared to May of 2011 and 2010.

A comparatively lower MSI is more beneficial for sellers while a higher MSI is better for buyers. The May 2012 MSI of 7.9 months was at its lowest level compared with May of 2011 and 2010.

Market Time

The average Days on Market (DOM) shows how many days the average North Shore Property is on the Market before it sells. An upward trend in DOM tends to indicate a move towards more of a Buyer’s market, a downward trend a move towards more of a Seller’s market. The DOM for May was up 17.5% from 114 days last month and down -23.0% from 174 days in May of last year. The May 2012 DOM was at a mid range compared with May of 2011 and 2010 real estate reports.

Inventory / New Listings / Sales

‘The view of the market (see photo above) combines monthly inventory of Properties for sale along with New North Shore Listings and Sales. The graph shows the basic annual seasonality of the market as well as the relationship between these items. The number of New Listings in May 2012 was up 22.2% from last month and in May of last year.

Our trusted Residential Real Estate office-Coldwell Banker, located in Glencoe, IL 60022; has been a community resource for well over 40 years.  Stop in today to ask questions about this report and other data concerning North Shore real estate for sale, or rent.  Our legendary service, top ranked volume, and experienced sales staff can be your summer guide.