North Shore Chicago Real Estate Update - 1st Quarter 2018 vs. Year Ago
Closed sales for the first quarter were up only 1% vs. the first quarter of 2017. About half of the villages increased while the other half declined. Glencoe had the biggest increase (+72%), followed by Lake Forest (+60%), Northfield (+44%). Winnetka had the biggest decline (-30%), followed by Kenilworth (-25%) and Highland Park (-24%).
While market growth on the coasts has been dampened by lack of inventory, that is not the case in the Chicago metro market, especially the suburbs. Here we have plenty of inventory, especially in the higher price brackets. For example, there are 7% more listings over $2,000,000 than this time last year.
Why is our area experiencing such a different reality than other large metro areas? It's the confluence of three trends: slow employment growth, population losses (Illinois had the greatest net outflow of residents of any state) and higher taxes. This March 30 article piece in Crain's Chicago Business gives some good insight into this phenomenon:
While sales were weak, median prices were more respectable, rising 11% overall, led by Kenilworth (+82%), Glencoe (+25%) and Evanston (+22%). Wilmette was the only North Shore village where the median price dropped, declining from $769,000 to $737,500. Average sales price as a percent of list price was 91.4%, down -0.3% from first quarter of last year.
Market time for homes that sold was 160 days or 5.3 months. Evanston continues to have the shortest market time at 94 days (3 months), while Lake Forest has the longest, at 250 days (8.3 months). Lake Forest continues to suffer as home buyers opt to stay in or close to the city rather than venturing out to remote suburbs.
Accepted Offers is one of the best indicators of market health, as it foretells what closed sales will be over the next couple of months. The fact that accepted offers overall are down 3% vs. last year does not bode that well for the spring market. Other than Evanston, Northfield and Lake Forest the trends are disappointing.
Accepted Offers March 2018 vs Year Ago
If you have any questions about the market or would like to schedule a buyer or seller consultation with the Anne West and the Come Home North Shore Team, please give us a call at 847.881.6657.