First I am excited to share with you that @properties just won a very special award this week from Inman. (Inman is the leading independent news publisher for the residential real estate industry. In addition to producing the best news in the business, Inman also hosts the highly respected Real Estate Connect conferences where the leaders in real estate gather to network and learn about the latest in real estate technologies). Here is link to Inman Award for @properties.
You may have seen reports in the national news that real estate sales this year are up across the country. While that is true on a national basis, and even in parts of the city of Chicago, here on the North Shore the market is not following national trends. So I thought you might be interested to learn about what is going on in Highland Park and why.
All of the information that I reviewed is from the Multiple Listing Service, for single family homes in Highland Park.
First, the interesting news is that the number of homes sold during the past 12 months (as of the end of July) is about the same as it was during each of the prior 2 years. In other words, demand for homes in Highland Park is the same this year as it was last year, and the year before. There were between 410 and 416 homes sold in each of the past three years, ending on July 31st.
The flip side of this is that the number of homes available for sale during the most recent 12 months increased by over 13%! This varies by price range. Homes priced under $500,000 actually had fewer homes available for sale this year than last year. Meanwhile, the number of homes available for sale priced at $500,000 or more increased across the board, especially the luxury properties (over $1 million asking price) which had an increase of over 37%.
Usually when supply is higher than demand, prices tend to fall. That hasn’t happened (yet) in Highland Park. So far, median and average prices across the board and within specific price ranges has been fairly steady over the past 3 years. I am concerned that when all is said and done, that we may see some declines in prices by the end of the year. There are many homes on the market now that have not sold yet, and as the summer draws to a close, sellers will be encouraged to reduce their price in order to get their homes sold so that they can move on with their lives.
Homes under $750,000 are experiencing a “balanced market” favoring neither the buyers or sellers. Homes over $750,000 are clearly experiencing a buyer’s market with 10 – 20 months of inventory available, depending on the price range.
Why is Highland Park, and the rest of the north shore, not following the national trends? It is all about demographics:
- We have disproportionately high number of baby boomers, and even some of their parents, still living in their homes on the north shore. The baby boomers are becoming empty-nesters and/or discovering that they are no longer "upside down" on their homes. And, their kids are finally moving out. This is why the number of homes available for sale has increased.
- The children of the baby boomers, the millenials, are not rushing out to buy homes on the north shore. Many are staying in the city. Many are still renting. And, the majority of those that are buying homes can't afford the more expensive homes on the north shore. And, to top it off, they want everything to look brand new (new construction or complete gut rehab). This is affecting demand - the millenials can't afford or don't want the homes that are available for sale.
If you are ever curious about the price of a property for sale anywhere in the Chicago area you can use my new app for your phone. Go to www.karpsearch.com on your phone. Then click on the link to go to your app store (both android and iPhone systems are supported). It is easy to use for a one-time look, and you can even set up and save searches – you need to create a username and password if you are going to save your search.
Or, if you just want to see what is on the market in Highland Park, I have two permanent searches that are updated daily. You can click on these links any time to see the full details on homes or condos/town homes for sale in Highland Park:
Thank you for reading!!