Glencoe-North Shore Market Trends: Update January-February2013

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Outstanding North Shore real estate conditions for a new year. According to recent reports by the Illinois Association of REALTORS®, home sales surged 15.2% in December compared to previous-year levels and median prices topped off at 5.6% on average, across the state. See the supporting image below provided by Midwest Real Estate Data LLC and North Shore-Barrington Association of Realtors (click to enlarge):

DecData-1

In addition, the monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 3.32% in December 2012. Last December it averaged 3.94%, according to the Federal Home Loan Mortgage Corp.

2012 showed stable signs of North Shore real estate recovery. As a result, an uptick in Chicago North Shore housing market figures was sustained across the board. Specifically ownership versus rental generation supported an increase in North Suburban housing sales that have spilled into 2013; with a decrease in market days before a North Shore property is sold. Confidence was seen in December of 2012, normally a slower period surrounding holiday sales performance. New Listings in the North Shore-Barrington region increased 1.0 percent to 407. Listings under Contract were up 56.1 percent to 451. Inventory levels shrank 39.6%. Low mortgage rates provided ongoing incentives to purchase, refinance and sell. All signs of inventory clearing and projected to produce positive figures well into 2013. Image below provided by Midwest Real Estate Data LLC and North Shore-Barrington Association of Realtors (click to enlarge):

 DecData-2

In the nine-county Chicago-North Shore Primary Metropolitan Statistical Area (PMSA), home sales (single family and condominiums) in December 2012 totaled 7,372 homes sold, up 19.2 percent from December 2011 sales. Fifty (50) of 102 Illinois counties reporting to IAR showed year-over-year home sales increases in December 2012. Thirty-nine (39) counties showed year-over-year median price increases including Chicago North Suburban Cook, up 7.7%.

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 Jan. 7, 2013 for the period Dec. 1 through Dec. 31, 2012, reporting in January 2013. 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.

Find Illinois housing stats, data and the University of Illinois REAL forecast atwww.illinoisrealtor.org/marketstats. 

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Real Estate Outcomes December2012: Chicago’s North Shore

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Property Sales

North Shore-Glencoe December real estate YTD sales are running 10.2% ahead of last year’s year-to-date sales. Overall property sales figures show -36.4% from December of 2011 and -41.7% lower than sales last month. December 2012 sales were at their lowest level compared to December of 2011 and 2010 sales data.

Prices

The Median Sales for Chicago North Suburban Glencoe was -8.7% compared to reports from December of 2011 and up 3.2% from last month. The Average Sales Price in December was down -23.5% compared to December of 2011 and down -24.6% from last month. December 2012 ASP was at the lowest level compared to December of 2011 and 2010 figures.

Inventory & MSI

The Total Inventory of North Shore-Glencoe Properties available for sale as of December was  down -24.3% from  data compiled  last month and down -39.1% from outcomes in December of last year. December 2012 Inventory was at the lowest level compared to December of 2011 and 2010.

A comparatively lower MSI (monthly supply of inventory) is more beneficial for North Shore sellers while a higher MSI is better for North Shore buyers. The December 2012 MSI of 8.0 months was at its lowest level compared with December of 2011 and 2010.

Market Time

The average Days on Market in Chicago North Suburban Glencoe (DOM) shows how many days the average real estate property is on the Market before it sells. An upward trend in DOM tends to indicate a move towards more of a North Shore Buyer’s market, a downward trend a move towards more of a North Shore Seller’s market. The DOM for December was 97, up 51.6% from last month and up 9.0% from sales data listed in December of last year. The December 2012 DOM was at its highest level compared with December of 2011 and 2010.

DecemberData2012

Inventory / New Listings / Sales

‘The view above provides a summary of the North Shore market combining monthly inventory of North Shore Properties for sale along with New 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 December specific to Glencoe in  2012, was down -88.9% from 18 last month and down -71.4% from figures posted in December of last year.

Glencoe’s high performing Coldwell Banker Residential Real Estate office located in the downtown district (640 Vernon Ave., 60022) can be a source for up-to-date real estate news, reporting, figures, analysis, outcomes, projections, and overall market conditions. Gloria Matlin, an exceptional North Suburban Realtor, has been helping buyers and sellers connect with their real estate dreams, on Chicago’s North Shore, for over 25 years. Feel free to stop in for immediate assistance.

North Shore Real Estate Trends for 2013-Glencoe Realtor’s Perspective

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Now in 2013, optimism and confidence in Chicago’s North Suburban real estate market is increasing. Growth has been seen throughout HomePredictions2012 and housing recovery is no longer a hush term. 2013 is forecasted to be one of the most productive and best performing real estate years on record. Below are 4 reasons to rejoice and scream out “Happy New Year”:

1. Increase in first-time North Shore home buyers-Recent trends and surveys suggest that growth in demand for North Shore-Chicago homes will likely be driven by first time home buyers. The National Association of Realtor’s released a survey in November of 2012 that showed 39% of borrowers were first-time property purchasers, up 37% from 2011 figures. See Survey HERE.

2. North Shore Home prices are on the rise-Confidence in the North Shore market has fueled demand in homes. The inventory available often gets snapped up quickly. In addition, new home construction may need to increase to keep up with population growth. A recent report by the National Association of Realtors (NAR) in October of 2012, showed a slight decrease of 22% in the pace of inventory against population growth and overall inventory availability. This equals higher demand, which results in higher prices.

3. Mortgage rates will rise-Although at a historic low for most of 2012, predictions are betting on the only direction the rates can go…UP! Rates are slated to rise 4% in 2013 according to The NAR. Experts agree that there’s no way the low-interest-rate trend will last forever. Getting into the marketNOW will have the best benefit and create a North Shore real estate asset as interest rates begin to surge again.

4. Rents will rise with young people entering the North Shore market-Many in their twenties and thirties have been waiting, riding out the economy. As the economy picks up, these same groups will look for apartments and rental property, thereby creating greater demand for the rental market. This means a new motivation for North Shore home seekers that may have been on the fence. In recent years rents have been rising nationally at a pace of about 4% based on a Zillow analysis and confirmation that buying beats renting in most metros including North Shore-Chicago. It’s predicted this trend will continue well into 2013. See report HERE.