Chicago North Suburban real estate (as of December 2011)

Chicago North Suburban real estate update as of December 2011

As of December 2011, homes sales in Chicago’s North Suburbs continued a healthy upward trend.

Sales were up 11% compared to prior month … and also up 9% compared to December of 2010.

The overall trend line remains on an upward glide path, even after considering seasonal fluctuations. Nice news for homesellers!

Inventory of homes is down

There’s more good news when it comes to inventory levels. The number of homes for sale in Chicago’s North Suburbs has been steadily decreasing since June 2011.

Fewer homes on the market mean stiffer competition among homebuyers, which usually translates into improved sale prices.

Average Sold Price trending down

The Average Sold Price, though, has been steadily dropping since June 2011.

A drop in prices can be attributable to several factors.

One of the reasons may be due to downward pressure exerted by Short Sales and foreclosures, which accounted for 37% of December sales.

Another reason may be attributable to first-time homebuyers. When the majority of homebuyers purchase their first house, they usually buy at the lower end of the range. Since 65% of homes purchased in December were sold for under $250,000, the average price of all home sales is weighted heavily with these more affordable homes.

* * *

The market remains under pressure from a bad economy, unemployment, and fears of the future. Homeowners must understand that to sell their houses, they must be competitive and realistic.

Since everyone — sellers, buyers, appraisers, and real estate brokers — has access to the same sales statistics, homeowners won’t be able to sell their for more than the market will bear.

It’s Judy … your North Shore real estate agent.