In the Chicago North Shore, much of the drop in average sales price was due to the sharp decrease of demand in expensive neighborhoods such as Winnetka and Glencoe (NorthShoreInsider.com, 12-04-2008). Every neighborhood is experiencing a drop in prices, and it's certainly a rare buyer's market right now in the North Shore.

Taking a step back for a bigger perspective, the 2008 third quarter S&P/Case-Shiller home-price index reported an additional decline from the previous quarter. Among the 20 major metropolitan areas, home prices dropped an average 17.4% from the previous year and among the top areas that suffered were Phoenix, Las Vegas, San Francisco, and Miami. The Chicago area reported a 10.1% decrease in home-prices compared to the past year (S&P, 11-25-2008). The full Case-Shiller report is available right here.

I want to point out that overall, the Chicago housing market is not suffering as much as other major cities. I believe this is due to our widely-recognized, reputable schools, welcoming suburb neighborhoods, great family environment, abundance of parks and green space, and plenty of arts and entertainment facilities. Let's all remember that the Chicago North Shore is one of the best places for long-term investment, and I'm sure it will be one of the strongest to hold out valiantly through this economic downturn!