Arlington Heights - Mount Prospect - Buffalo Grove - Palatine - & Surrounding Communities

I am excited to post my first electronic version of the Northgate Market Update. In an effort to reduce paper and provide on demand access to the information, I will begin posting the report on a quarterly basis and sending e-mail notifications out to the neighborhood when it is ready.

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 As I look back on 2007, I want to stress again that the summary data for Northgate can be somewhat misleading. Each home needs to be evaluated on a case by case basis. As an example, out of the 7 Jamestown models that sold, the sales prices ranged from $330,000 to $420,000. The largest price spread we’ve experienced.

We have seen some pressure on prices within the smaller homes due to high inventory throughout the area. However, the apparent “depreciation” of prices is misleading. There were several properties that were in poor condition and brought down the averages. The decrease in the overall average price can be attributed to a greater percentage of the sales being the smaller models this year.

The higher price appreciation of the larger models is consistent with what is going on in the broader market. Consumer confidence seems to be strongest in the higher price ranges and within “move-up” homes where people will tend to stay the longest.

Looking outside the neighborhood, 374 homes sold within the 60004 zip code, or just over 5% more than 2006. Sale prices averaged $467,100, with 155 days market time, and .5% price appreciation. Everything is taking longer to sell, but those who understand the importance of preparing the house for sale and setting the right price are the ones who are getting contracts.

While we look ahead to what the year might bring some key elements to consider are…

• Interest rates are at the lowest rates we’ve seen in years and are expected to stay near these levels for the foreseeable future.
• A Federal economic stimulus package is under review
• Longer market times are likely to continue as more demanding buyers take their time to consider their options.

Let my proven success work for you! During this period, my listings sold about 40% faster than other homes sold in the neighborhood. If you or anyone you know is thinking about buying or selling, I’d love to help!

Please contact me any time to review any questions you have about the market or to help with decisions about your own home.