The average price of a North Shore home was up 19% in the first quarter of 2014, and the average market times was down 25%. The market is strong and prices are continuing the rebound that started last year. The fact that market times have gone down dramatically is further evidence of the market’s strength. The number of homes that closed this quarter was down a little from the first quarter of 2013. This is due to the low inventory and harsh winter. There are buyers out there, but many are having a hard time finding a property that works for them.
Inventory: Inventory continues to be extremely low. Wilmette has 69 single family homes on the market that are not under contract. Evanston has 97 such homes. These numbers are virtually the same as this time last year and based on the current rate of sales, that is less than a 2 month supply in each suburb. This is the time of year when supply should be on the high side and expanding, but that has not been occurring due to the rapid pace of sales.
Interest Rates: 30 year fixed conforming loan rates (loans below $417,000) have gone up in the past year from the mid 3’s to the mid 4’s where they have been holding steady for a number of months. Jumbo fixed rates are also in the mid 4’s. While up some from early last year, these are historically very low interest rates. Adjustable loan rates are in the low 3’s currently.
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Short Sales & Foreclosures: Short sales and foreclosures accounted for 21% of all North Shore homes sales in the first quarter. That number is slowly drifting down, but still makes up a significant share of the market.
The most expensive home in the North Shore to sell this quarter was in East Lake Forest and it went for 4.25 Million. It was new construction on over an acre of land with 10 bathrooms and an indoor basketball court.
