How’s the Market?
We hear this question all the time and it is important for your real estate broker to be fully apprised of current market conditions both locally and nationally. Nationally, we see moderate economic growth and low inflation with unemployment at 5 percent. In Chicagoland overall, real estate prices are up, selling times are stable (and continuing to drop in some markets, although not in Evanston), and inventory is at about a five-month supply which represents a healthy and balanced supply. In December 2015 the Consumer Confidence Index was at 96.5, making it an ideal time for both buyers and sellers.
The average price of single family home in Evanston increased by 11.6% from $523,969 for sales closed between March 2014-2015 to $585,170 for sales closed between March 2015-2016. The number of sales increased 14.3% from 433 between March 2014- March 2015 to 495 between March 2015- March 2016. Market time remained about the same, averaging 2 1/2 months.
The luxury market, which is classified as home sold at a price of $1 million or more, continues to be a strong segment of the market. Between March 2014-2015 30 luxury homes were sold at an average price of $1,361,200. Between March 2015-2016, 52 luxury homes were sold at an average price of $1,478,487. That represents an increase in volume of 73.8% and a price increase of 8.6%. Market time remained about the same, averaging 4 months.
In a widely anticipated move, the Fed raised interest rates by .25% in mid-December for the first time in nearly a decade. Mortgage rates remain highly favorable, although additional rate increases are expected to take place in 2016 as the economy continues to strengthen.
Outlook for Sellers
The outlook for sellers continues to be positive with inventory levels remaining low and demand continuing to be strong. Prices and existing home sales continue to rise at moderate rates in Evanston.
Outlook for Buyers
We expect to see continued strong sales activity in the market. With low interest rates, continued demand for inventory, and strong consumer confidence, buyers are encouraged to act quickly upon finding the home that meets their needs.
- Low inventory and low interests rates contribute to a balanced market (equally good for buyers and sellers)
- The luxury market in the $1 million to $2 million market segment continues to thrive
- Prices continue to rise at moderate levels
- Favorable interest rates continue at near historic low levels
- Days on market in Evanston have stabilized at around 2 1/2 months overall, and 4 months for the luxury market.