This is a high level recap of the Highland Park real estate market in 2014, and what I think it means for the months ahead.
The number of single family homes sold in Highland Park during 2014
declined from the prior year. On the surface, this sounds like it could
be bad news, but I don't think it is. The underlying trends are very
This chart shows the same info as the previous one, except it is broken out into price ranges. Interestingly most of the decline in
the number of homes sold are for homes valued under $500,000. Sales of
homes between $500,000 and a million dollars INCREASED during 2014. Why? Read
Using sales info on homes that sold, we can estimate how long it will take to sell the current inventory of homes available. This is called "months supply." When months supply is 5 - 7 months we have a balanced market - it doesn't favor the buyers or the sellers. HP appears to be a balanced mkt.
When we look at months supply within price range, we see what is really going on in HP. Homes priced under $500,000 it is sellers market - demand exceeds supply and homes are selling fast. Prices $500,000 - $1 million is balanced. Homes over $1million it's a buyers market with long market times.
Best chart last: Average and median prices in HP increased in 2014. Based on the previous charts, this is partially due to more expensive homes sold this year than in the preceding years. (Home values are up, though not by the exact %'s on the chart.)
What does this mean for 2015? I think demand for homes under $1
million will continue to be strong and prices will continue to improve at a
modest rate. Hopefully demand for luxury homes will catch up with
the supply, though I believe that prices will still be soft in that part of the
market, at least through the first several months of 2015.
Thank you for reading!!
If you’d like to understand how this information affects you and your home buying/selling decisions, contact me directly for a consultation.
@properties | Broker, MBA, ePro, SFR, CNE | 607 Central, Highland Park, IL 60093
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