North Shore Market Report, End of 2016
We have had 2 years in a row of stable, almost sideways movement in the North Shore real estate market. The number of home sales increased by 3.7%, and market time went up 10%. The average price on the North Shore increased by 2%, but 3 of the 4 suburbs in my chart had small average price declines. Essentially prices stayed about the same. Here are the 2016 statistics:
|Number of Homes Sales||Average Market Time|
|Average Home Price (in thousands)||Median Home Price (in thousands)|
|2015||2016||% Change||2015||2016||% Change|
Inventory: Inventory stayed about the same in 2016 as it was in 2015. Both years are up from the low levels that existed prior to 2015. Wilmette currently has 120 active, not under contact, homes on the market which is about 10% higher than this time last year, and well off the summer highs of the last 2 years when the number reached 200 homes. Evanston currently has 74 active, not under contact, homes on the market which is the same as last year. It continues to have a tighter inventory than other suburbs and thus its average price has seen upward movement. Winnetka currently has 115 active, not under contract, homes which is also nearly identical to last year and is a large inventory. Glenview has 215 active, not under contract, homes which is a large inventory for this time of year also.
Prices: 2016 played out almost identical to 2015. Prices saw very modest increases. The North Shore average and median went up 2%. It was a balanced market that did not overly favor Sellers or Buyers. The early part of the year was more favorable to Sellers, but as the year went on, and inventory levels increased, Buyers gained more leverage and were able to negotiate more aggressively. As a result of this increased leverage, prices dipped a little in the later part of the year. The year as a whole was flat for prices.
Interest Rates: Interest rates stayed at near record lows for most of 2016 at about 3.5% for a 30 year fixed rate and then bumped up in November and December to just over 4%. That is a great rate historically, but seems high after being 1/2 a percent lower for most of year.
Short Sales/Foreclosures: 8% of North Shore single family homes sales in 2016 were either a short sale or a foreclosed property being re-sold by the lender. This percentage continues to decline. Last year it was 10% of sales, and in 2013 it was 14%. This number peaked in 2010 at 23%. I would expect this downward trend to continue.
2016 North Shore Sales Facts: Highest Sale Price: $6,650,000; Lowest sale price: $90,000; Longest market time: 3523 days (home was listed in 2006); Most Bathrooms: 13; Suburb with the most sales at 4 million and above: Winnetka with 3, four suburbs had one.