The Worm Has Turned
It’s been a long wait. There have been many “fits and starts”. We thought it might have happened several times over the past several years, only to be disappointed. This time it seems to be the real thing.
Of course, I’m talking about a residential real estate recovery on the North Shore.
All real estate is local. Therefore, I’m not talking about a national, or even a regional recovery. I’m specifically speaking of a strong upswing in the Winnetka, Wilmette and Evanston markets. The Kenilworth, Glencoe and Highland Park markets are showing some new strength and Glenview, Northfield and Northbrook are holding their own.
New listings that are well priced seem to be “going under contract” within days, often with multiple offers. Showings are way up. The mood of the market is greatly improved.
Last Friday, we placed a new listing of a lovely home in east Winnetka on the market. On Saturday there were seven showings. On Sunday, we hosted a public open house and we had thirty-five (35) groups visiting. These are numbers that we haven’t seen since 2006.
This was not an isolated event.
Of course, there are certain pockets of price points and locations that are showing the most strength. I don’t want to imply that prices are rising yet, because the data is still too fresh to analyze. We still are seeing some pressure from distressed sales.
What we are seeing is a new interest from a wide variety of buyers. The supply of well priced properties is relatively small. There are still some properties that are not being being viewed as “attractively priced” and are being disregarded by buyers. There is still a great deal of inventory at the higher end, particularly in the $2 million+ category, but there have been several transactions in that range.
There seems to be a level of optimism and confidence that hasn’t been present in years. Buyers are recognizing that the combination of lower prices and historically cheap mortgage rates is presenting an opportunity that most people have never experienced in their lifetime.
While not all of the local communities have experienced the same level of market improvement, it is likely that the mood may spread as buyers miss out on multiple offers and limited choices and find that they may have to expand their geographic boundaries to take advantage of the current opportunities.
For those looking for a market bottom, this is a phenomenon which is sadly only viewed from the rear view mirror.
Shoulda, woulda, coulda.....
Hi Howard and Susan, I agree and wrote on it today and have been seeing it for 6-9 months. Hooray! Enjoy and have a great 2012!
Howard and Susan,
We are seeing the same trend here in Pawleys Island, SC. It is very exciting. I have had such a busy week I am grateful for Easter Sunday. LOVING IT and happy to hear others are feeling it as well!
Hey guys, I'm seeing the same thing here, in Metro Detroit. I didn't think it would ever happen for us as hard as we were hit, but like you said, the "bottom" seems to be behind us.
We have been in a multiple offer situation for some time. It is only getting tougher for buyers.
I'm glad buyers are recognizing this rare opportunity. The market here in Colorado Springs is definitely picking up and homes in the lower price ranges are not sticking around for long!
In the last year here it has gone from an overall buyers market, to one of neutral in some parts of town, to actually favoring the seller in other parts. Law of supply and demand. Low supply, high demand.
There's a serious upward swing here as well. "Shoulda, coulda, woulda" is a great way to describe. The fence sitters sat too long. Now they just have to look at the low interest rates as where their deal is.
Jon..the rollercoaster was wasn't really anyone's friend.
Raymond...Great point. I hope he gets it.
Maria...the confidence is contagious.
Kimo... of course, all real estate is local. We have been hearing about the next wave of foreclosures for a long time, but still haven't seen them yet.
Dave...happy to hear it's happening in Idaho.
John...trying to take the pulse of the nation. It seems that while it isn't happening everywhere (yet), it seems to be taking hold in a lot of varied locations.
Erica...yes, the sellers, or at least many of them, are finally getting it.
Linda...the problems down there are particularly difficult. Hopefully the inventory will clear soon.
Gary..looks like the signs are pointing toward recovery in your area.
Larry and Marilyn...That's great to hear because I know that your area had been hit particularly hard.
Kay...Looks like the foundation is building for recovery.
Bill...In retrospect, the "good ol days" weren't so great when you look at the big picture.
Bob..We were fortunate to not have experienced the foreclosure crisis to the same level as many other areas, and as there are going to be some REO's coming on here, it shouldn't be enough to change the trend dramatically.
Bob M...Thanks and we hope you have a great 2012 also.
Rachel..Doesn't it feel great to be busy?
Eric...If you sense a recovery in Detroit, it should provide optimism for everyone in every market.
Gene...Based on the responses here, California seems to be the poster child for "real estate is local".
Patricia...Great to hear!
Jon..It seems the lower inventory is also a national phenomena.
Amanda...While they may have missed the absolute bottom, the low rates and the reduced prices still provide a wonderful opportunity.
Hi Howard and Susan
Happy Passover and Happy Easter to everyone!
We are definitely seeing a change in the market in good ole' southern California...remaining with very little for the buyers to choose...as many listings as is going on the market, that's how many pending sales are happening at the same time. And, correct, most with multiples...
It's been a fabulous first quarter with goodness continuing for the rest of the year!
Jo Ann
Jo ann...Thanks so much. Let's hope it continues for those of us who are experiencing the rebound and begins for those who have not yet had that good fortune in their market.
Glad to hear and and especially see that it is happening for so many others. We are seeing the same thing in parts of our Market here in Steamboat Springs, CO. Even seeing some price appreciation in isolated parts of the market when the supply gets into balance. There are a good number of people from Winnetka that own in Steamboat, send your clients our way and we will tkae good care of them.
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