The figures for Evanston residential real estate transactions from September 2012 through September 2013 validate the prevailing optimism that home ownership value is making a steady recovery. Four key indicators of positive market activity have been present over the past 12 months: Decreased inventory, increased sales, increased sales prices, and decreased market time. Despite the tendency of some sellers to price their properties more optimistically, the value of energy pricing is very evident. Sold properties in Evanston during this period yielded 96.4% of list price with no price reductions, as opposed to sold properties collecting only 85.1% of original price with one or more price reductions during the same period (Connect MRED MLS data courtesy of Agent Metrics).
Let’s examine each of these four market indicators in more detail as they relate to Evanston home sales in the past year.
Decreased Inventory / Increased Sales
These two market forces go hand in hand, and the positive direction our local market sustained over the past year is reflected in the supply and demand chart below.
In the past year, inventory in Evanston has dropped over 17%, while sales have increased a whopping 72%.
Increased Sale Prices
After suffering through a prolonged drought as our economic engine struggled to gain any movement, Evanston home prices are finally on the rise, signaling a gradual path toward stabilization. Over the past year, home prices rose an average of 3.12% per month, for a total growth percentage reaching an impressive 37.4%.
Decreased Market Time
For residential properties in Evanston in the past year, the average number of days to sell a homes plummeted by 48%, down from 136 in Sept. 2012 to just 71 through Sept. 2013, with many home selling in a week or less. This spells good news for home sellers, while causing potential headaches for home buyers who may be in competition with other would-be buyers. Many Realtors are reporting significant increases in multiple offers on their listings.
Evanston homeowners can sleep a little better at night, with the reassurance that our local market is gradually moving in the right direction. The main question is whether or not home sales will continue to remain strong through the winter and into the spring, when a resurgence of new inventory and sales activity should develop.