Winnetka, Wilmette, Kenilworth, and Glencoe
There is hope on the horizon - not all real estate news is bad news. In fact, the number of homes sold in the North Shore towns of Winnetka, Wilmette, Kenilworth, Glencoe and Northfield have held steady during the long slide from the boom years. Obviously, prices have dropped considerably, but demand is still there.
I have estimated that North Shore home prices have dropped around 30% during the past four years of this recession. Nowadays, many home sellers understand the market and price according to their real estate broker's opinion. This has has a good effect on the local market: fewer days on market and a sale price that is much closer to the list price.
This chart shows some interesting information regarding the annual appreciation and depreciation of homes - this is a national chart so the numbers are not exact to the North Shore or even Chicago, however it makes the point for where prices were and where they're headed.
Between 1987 and 1999 prices rose 3.6% annually. Then, through the bubble years of 2000 and 2006, prices soared to 10.4% annually. Then the bust years began in the third quarter of 2006 and prices dropped 7.1% annually. And finally, expectation for the next three years is a modest 1.1% rise in homes prices.
What's interesting is that if you deduct the drop from the rise (10.4% minus 7.1%) you end up with 3.3% which is about where we were in the pre-bust years (at 3.6%). In other words, the market has corrected itself.
Bubbles are meant to break - they don't last. If you are lucky enough to have bought your home before 2000, you will not see any great loss in the value of your home (barring any loans against the home.) If you bought during the heydey, unfortunately you will realize a loss when you sell - but try to temper that angst with a new purchase and at least some of the monies will have been recovered.
Recovery is coming - slowly - there is still high unemployment, job insecurity, more foreclosures, wars, oil, and many other obstacles that will dampen it. But it is coming.
Call me for more information on pricing your North Shore home to sell in this market.
*Chart courtesy of Steve Harney, KCM
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