Just last summer everyone was lamenting the lack of inventory of Winnetka and other North Shore 
homes for sale. Buyers were plentiful and sellers were celebrating a bidding war bonanza.
This year the real estate scene is a little different . People are asking me about all the "for sale" signs dotting the streets. Inventory is definitely up and the question is why.
Whereas Kenilworth had under 30 homes for sale a year ago, the number today is 58. Last year Winnetka was hovering just under 100 and today it's 187.
So what's going on? Mainly it's important to understand that these inventories are more historically normal - it was abnormal to have so few homes on the market last year. It might be more logical to ask why there were so few listings available last year.
2014 was a strong seller's market with a short supply of homes. While we are not in a buyer's market yet, there is definitely a return to a normal, or balanced market. With more inventory available to purchase, buyers are not so frenzied and may pass up homes that are not perfect for them. In other words, they are willing to wait.
There has been much talk about the Millenial generation and their lack of interest in home buying. Ultimately that mindset will change but how will their decisions affect our suburban inventory. They have been said to be more interested in staying close to the core of the city and their jobs. At the other end of the age gap are the Baby Boomers, who may have been waiting to get out from an underwater situation.
Every discussion about housing rests on mortgage rates and their hotly debated direction. They have been predicted to rise for several years in a row and have not. They are again supposed to be on the rise at the end of 2015 and early 2016.
Every real estate market is local - I can't say it enough. What we're seeing here is not happening in most markets. It may just be a temporary blip or more long term, the real estate market can change suddenly too. But for right now, buyers have a slight edge.
Comments(3)