The Worm Has Turned

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.....