News & trendsMarket conditions

North Shore – Barrington area home price growth is moderating

by Joe Zekas on 8/27/14

The following arrived via a news release from the North Shore – Barrington Association of Realtors:

Home prices on the North Shore continued to rise last month, but at a lower rate, reflecting the national picture. The medium home sale price in the North Shore – Barrington market increased 0.6 percent in July to $417,500, compared to $415,000 in July of 2013, according to data from the North Shore-Barrington Association of Realtors (NSBAR).

Home price growth is moderating across the country. Data from the National Association of Realtors shows that year-over-year appreciation is now at its slowest pace since 2012.

“A bit of slowdown in growth isn’t bad news,” says Jim Votanek, president of the North Shore-Barrington Association of Realtors and broker with @properties in Libertyville. “The slower but healthier rate allows homeowners to continue steadily building equity. For buyers, moderate price gains together with increased supply, means better opportunities to choose.”

The inventory of homes for sale in the area is up, increasing 12.8 percent in July to 3,666. This represents a 5.9 month supply of inventory, nearing the 6 month supply considered a healthy equilibrium between buyers and sellers. The local supply of inventory has increased steadily each month in 2014, up from 3.3 months in January. New listings increased by 15.2 percent in July to 1,357 compared to 1,178 in July 2013.

The time a home sat on the market in July was down to 72 days (a 22.3 percent decrease), compared to 92 days in July 2013. This is also the shortest number of days reported in 2014; down 11 percent from last month and down 39 percent from the 2014 peak of 119 days in March.

A sixth straight month of 200,000-plus job growth nationally reinforced evidence that the U.S. economy is accelerating and, encouragingly, a higher proportion of July’s job gains were in higher-paying industries. The U.S. Department of Commerce reported GDP grew at a 4.0 percent annual rate in the second quarter and consumer spending is on the rise along with saving rates.

“Increased saving rates means more resources for down payments,” says Votanek. “Continuing low interest rates coupled with private job growth acceleration at the higher end of the employment spectrum bodes well for our market.”

Buyers are responding favorably to the stable market. “While there are buyers who think it’s still 2009, most are now making competitive offers,” says Martin Walsh, a broker with @properties in Winnetka. “The spring’s multiple offers have cooled but the cooling is seasonal and we expect to see a bump in activity before the holidays.”

Across the North Shore-Barrington region, July 2014 housing market highlights include:

Year-to-date – 2,758 detached single-family homes sold in the North Shore-Barrington market. In the majority of communities, sales for 2014 were down compared to a year ago but median sales prices were higher. Communities reporting an increase in sales year-to-date compared to July 2013 include: Bannockburn, Highwood, Mettawa, Northfield, Prairie View, Riverwoods, Skokie and Wilmette.

Barrington area – 311 detached single-family homes sold year-to-date, down 7.7 percent compared to 337 detached single-family homes sold by July 2013. The median year-to-date sale price in July 2014 was $505,000, up 2.4 percent compared to $493,000 a year ago.

Deerfield – 137 detached single-family homes sold year-to-date, down 14.4 percent compared to 160 detached single-family homes sold by July 2013. The median year-to-date sale price in July 2014 was $480,000, up 5 percent compared to $457,000 a year ago.

Evanston – 235 detached single-family homes sold year-to-date, down 17.3 percent compared to 284 detached single-family homes sold by July 2013. The median year-to-date sale price in July 2014 was $499,000, up 3 percent compared to $484,550 a year ago.

Golf-Glenview – 298 detached single-family homes sold year-to-date, down 4.8 percent compared to 313 detached single-family homes sold by July 2013. The median year-to-date sale price in July 2014 was $523,000 up 4.8 percent compared to $499,000 a year ago.

Lake Forest – 155 detached single-family homes sold year-to-date, down 14.4 percent compared to 181 detached single-family homes sold by July 2013. The median year-to-date sale price in July 2014 was $775,000, up 0.6 percent compared to $770,000 a year ago.

Northbrook – 231 detached single-family homes sold year-to-date, down 5.3 percent compared to 244 detached single-family homes sold by July 2013. The median year-to-date sale price in July 2014 was $510,000, up 6.8 percent compared to $477,717 a year ago.

Skokie – 272 detached single-family homes sold year-to-date, up 0.4 percent compared to 271 detached single-family homes sold by July 2013. The median year-to-date sale price in July 2014 was $275,000, up 14.6 percent compared to $240,000 a year ago.

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