Northbrook, IL

Northbrook's January Property sales were 17, down -37.0% from 27 in January of 2011 and -54.1% lower than the 37 sales last month. January 2012 sales were at their lowest level compared to January of 2011 and 2010. January YTD sales of 17 are running -37.0% behind last year's year-to-date sales of 27.

The Median Sales Price in January was $282,000, down -22.1% from $362,000 in January of 2011 and up 15.1% from $245,000 last month.
The Average Sales Price in January was $386,757, down -4.7% from $405,968 in January of 2011 and up 24.0% from $311,935 last month. January 2012 ASP was at the lowest level compared to January of 2011 and 2010.

The Total Inventory of Properties available for sale as of January was 283, down -4.7% from 297 last month and down -29.4% from 401 in January of last year. January 2012 Inventory was at the lowest level compared to January of 2011 and 2010.

The January 2012 Months Supply of Inventory of 16.6 months was at its highest level compared with January of 2011 and 2010. A comparatively lower MSI is more beneficial for sellers while a higher MSI is better for buyers.

The average Days On Market (DOM) is how many days the average Property is on the Market before it sells. An upward trend in DOM tends to indicate a move towards more of a Buyer's market, a downward trend a move towards more of a Seller's market. The DOM for January was 64, down -55.9% from 145 days last month and down -55.9% from 145 days in January of last year. The January 2012 DOM was at its lowest level compared with January of 2011 and 2010.

The Selling Price vs Original Listing Price is the average amount that Sellers are agreeing to come down from their original list price. The lower the ratio is below 100% the more of a Buyer's market exists, a ratio at or above 100% indicates more of a Seller's market. The January 2012 Selling Price vs Original List Price of 88.1% was up from 83.6% last month and up from 85.9% in January of last year.

The number of New Listings in January 2012 was 62, up 106.7% from 30 last month and down -18.4% from 76 in January of last year.

Homesellers everywhere are scratching their heads and wondering where all the buyers have gone.

Get out your calculator, and you wonder no more.

Since 2006, 4 million homeowners lost their homes due to short sales or foreclosures

An additional 14 million homeowners (30%) are underwater

An additional 2.4 million homeowners hold less than 5% equity in their homes

An additional 3 - 10 million homeowners facing foreclosure (nobody knows for sure!)

Add it all up, and we’re looking at 23 to 30 million current homeowners who are out of the market.

Since there are about 48 million homeowners in the U.S., 50 to 62.5% of move-up homebuyers have been removed from the market.

Number of ‘move-up’ homebuyers out of market
4 million	Homes lost to foreclosure or Short Sale since 2006
14 million	Homes currently underwater
2.4 million	Homes with less than 5% equity
3 – 10 million	Homeowners currently facing foreclosure (in default, in foreclosure processing, selling as short sale)
23 – 30 million	Total move-up homebuyers out of market
48 million	Total number of residential properties
50 – 62.5%	% of move-up homebuyers out of market

If you’re a homeowner who wants to sell your house and wondering where all the homebuyers have gone, wonder no more.

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

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.

Northbrook's December Property sales were 34, up 9.7% from 31 in December of 2010 and 30.8% higher than the 26 sales last month. December 2011 sales were at their highest level compared to December of 2010 and 2009. December YTD sales of 478 are running 2.8% ahead of last year's year-to-date sales of 465.

The Median Sales Price in December was $256,250, down -14.9% from $301,000 in December of 2010 and up 3.5% from $247,500 last month. The Average Sales Price in December was $323,576, down -20.0% from $404,669 in December of 2010 and up 22.7% from $263,817 last month. December 2011 ASP was at the lowest level compared to December of 2010 and 2009.

The Total Inventory of Properties available for sale as of December was 286, down -11.5% from 323 last month and down -28.5% from 400 in December of last year. December 2011 Inventory was at the lowest level compared to December of 2010 and 2009.

The December 2011 Months Supply of Inventory of 8.4 months was at its lowest level compared with December of 2010 and 2009. A comparatively lower MSI is more beneficial for sellers while a higher MSI is better for buyers.

The average Days On Market (DOM) is how many days the average Property is on the Market before it sells. An upward trend in DOM tends to indicate a move towards more of a Buyer's market, a downward trend a move towards more of a Seller's market. The DOM for December was 131, up 57.8% from 83 days last month and up 81.9% from 72 days in December of last year. The December 2011 DOM was at a mid range compared with December of 2010 and 2009.

The Selling Price vs Original Listing Price is the average amount that Sellers are agreeing to come down from their original list price. The lower the ratio is below 100% the more of a Buyer's market exists, a ratio at or above 100% indicates more of a Seller's market. The December 2011 Selling Price vs Original List Price of 84.0% was down from 87.0% last month and down from 89.3% in December of last year.

The number of New Listings in December 2011 was 29, down -17.1% from 35 last month and down -46.3% from 54 in December of last year.

You don’t have to hire a home stager to sell your house

You don’t have to hire a home stager to sell your house. You can be your own home stager. Here’s how!

Listing your house for sale isn’t easy

• It disrupts just about everything in your life—for you, your family, and your pets.
• It puts a greater burden on an already hectic schedule.
• It raises insecurities about your future … whether you can get top price in the shortest time possible … and what you’ll do if you can’t.
• It makes you toss and turn at night.

Selling your house in this competitive market is tougher than ever, and here’s why:

• Most homebuyers demand move-in ready houses
• Most homebuyers put a higher premium on houses staged like model homes
• Most homebuyers have a better handle on fair market value than most homeowners

Once upon a time, homeowners could vacuum the carpet, dust the furniture, and straighten up a bit. Then they could sign a listing agreement with an agent, wait for buyers to show up, and negotiate a price in line with their expectations.

Everything has changed.

With so many houses on the market and fewer buyers than ever before, homeowners face bigger challenges and different rules. Instead of just slapping their house on the market and sitting back, they have to work at the job of actually ‘selling’ their house.

Selling a house requires planning

You have a lot to think about and a lot to do. Maybe too much. You don’t know where to start. After all, you lived in your house for years. Turned it into a home. Collected memories along the way. And lots of stuff.

You know you have to turn your ‘home’ back into a ‘house’ that will appeal to new owners. But where do you start?

First cut the strings. Your house has been ‘home’ for so long, you can’t see it with an unbiased perspective. Your eyes wash over the same floors and walls, and see the same things they’ve always seen. Home sweet home!

To break the tie that binds, you have to see your house through the un-rose-colored glasses of a homebuyer. How do you do that?

ATTEND open houses!

That’s right. Become a buyer for a day. Take an afternoon or a couple afternoons to visit several open houses in your community.

Touring other people’s houses allows you to walk in the uncomfortable shoes of a prospective homebuyer rather than the well-worn slippers of a homeowner. When you walk into open houses — other people’s houses — you’ll be able to see in their houses what you’re unable to see in your own.

You’ll notice odd decorating choices, worn carpets, dreary rooms, garish wall paint, overpowering wallpaper, clutter, and uncleanliness. You’ll also see care, space, flow, brightness, roominess, updates, and so much more.

You’ll make instant assessments of what’s wrong with each house … and what’s right.

• Each house may show its age … or show off recent updates.
• One might appeal to more traditional Baby Boomers … or call out to younger Gen-Xers.
• Wear and tear may jump out at you … or pride in ownership could appear around every corner.
• Rooms may be light and bright … or dark and confining.
• Kitchens will be spic and span … or dated and dull.
• Bathrooms could be something to die for … or require elbow grease and bottles of bleach.
• The house may be tastefully decorated … or a hodgepodge of tchotchkes and clutter.
• Rooms may smell fresh and clean … or reek of something else.
• Visible repairs could be extensive … or the house might be move-in ready.

At the end of each tour, make a personal assessment of value. It won’t take long for you to understand that this house is overpriced, that house is priced just right, or the other house is a bargain.

Going back home

At the end of your afternoon, you will have toured several open houses, collected brochures and listing sheets, and spoken with a handful of agents.

When you drive up to your house, pretend you’re visiting for the very first time. But instead of making mental notes like you did for those open houses, make real notes.

‘Tour’ your own house the same way you did when visiting those open houses.

Park at the curb, get out of the car, and walk up to the front door. Make notes as you go along.

Go inside and see your house with a brand new pair of eyes. Continue making notes.

Walk through each room and jot down additional thoughts of how you would change this, rearrange that, or remove something else.

After finishing the ‘grand tour’, put a price tag on your house. Go on. Be honest with yourself. Since you’ve already seen other houses in the neighborhood, you can make a common sense appraisal of your own home without resorting to a calculator, exactly the way homebuyers do it!

Now that you understand what you’re up against, roll up your sleeves and dig in.

Tackle your To Do List

Take a month or even two to get everything on your To Do List accomplished. If necessary, go to more open houses. Or visit builder model homes for decorating ideas.

• Does the carpet look worn and weary? Replace it.
• Does the wallpaper darken a room or make it look outdated? Remove it.
• Do large, or even small repairs, call out? Fix them.
• Are the walls scuffed and dull? Repaint them.
• Are the appliances ready for replacement? Go shopping.

Every dollar spent improving your house in these relatively small ways won’t merely increase its value but sell your house faster to discerning buyers.

If you’re unwilling or unable to invest in improvements, you can still spruce up your house and make it appealing to the eyes of those same discriminating buyers. But don’t forget to factor in a generous discount.

Now you’re ready. Call the real estate agent of your choice and put your house on the market. Not only will your house be ready to sell. It’ll be priced right to sell, as well!

It’s Judy ... your Chicago North Shore real estate agent!