Recent Naperville Trends

How has 2010 been for the Naperville single family housing market? Based on the latest numbers I have seen from MRED (the multiple listing service for our area), they are looking positive for single family Naperville home sales. And here is why -

Sold Median Price / Sold Average Price

In January , there was a gap of 16.3 % between these numbers. If you follow the Naperville market, we know that typically this gap is about 12%: In July it was 11.6% and has been improving since February. In dollars it looks like this: Average Jan/10 = $444,261. July/10 = $510,481, or an increase of 14.9%. Median Jan/10 = $371,750. July/10 = $451,500, up 21.5%.  These are strong numbers from my perspective.

Under Contract Price

Under Contract prices reflect the list price of homes that are currently under contract – not the selling price for those homes. It is a more narrow snapshot of where the market is at the current moment and is not necessarily indicative of an overall trend. For the record, prices for homes Under Contract have gone fro and average of $411,950 in Jan/10 to $429,900 in July/10 – an increase of 4.4%.

Supply & Demand

The changing numbers in this analytic seem to indicate positives for home sellers – as a general rule. Units under contract are up 73% since Jan/10 and units sold up 131.8. Outside of the spike we saw at the end of the tax credit window, this has generally been an improving number. Months Supply of Inventory continues to decline from 11.0 in Jan/10 to 8.0 in July/10. If it gets to 6, some experts consider that a balanced market!

Remember the line “I’ve got good news and bad news for you?” That’s what the Naperville 60540 market statistics are telling us through the end of June, 2010. Average list prices remain above $700,000 while median list prices are in the mid $400′s.  Homes are still selling, though not as quickly.

90-day stats for Single Family properties in NAPERVILLE, IL60540 as of February 3, 2012
Median List Price:	$446,018	Average List Price:	$660,294
Total Inventory:	189	Price per Square Foot:	$192
Average Home Size:	3,075	Median Lot Size:	10,863
Average # Beds:	3.82	Average # Baths:	3.08
Homes Absorbed:	11	Newly Listed:	5
Days on Market:	277	Average Age:	31

Median prices continue to decline in 2010 from the relative stability we had in the fourth quarter of 2009. Year to date, the median price has declined around 1% per month.

Inventory continues to rise to its highest levels since November 2009. Higher inventories mean more competition for sellers and more choices for buyers. This usually leads to increased pressure on home prices.

The good news? Market times are continuing to decline. Homes sell when they are priced attractively to the market – not before. Remember, the market determines what the selling price of the home is – not the investment in the home or what the seller needs to get out of the property.

Image via Wikipedia

From 365 Things To Do In Naperville

Day 22 – Hey, what is up for lunch on Friday? How about lunch with a Naperville Gold Medal Winning Olympian? Hosted by the Chamber at White Eagle Golf Club, you can have lunch with Evan Lysacek! The following is from the Naperville Chamber of Commerce site:

Special Luncheon with Olympic Gold Medalist Evan Lysacek

3/26/2010 12:30 PM TO 2:30 PM

Registration is now closed for the Luncheon, please feel free to attend as a walk-in.

On behalf of the 1,700 Members of the Naperville Area Chamber of Commerce, Mayor A. George Pradel and the City of Naperville, you are cordially invited to attend a special luncheon in honor of Naperville’s 2010 U.S. Olympic Gold Medalist Evan Lysacek:

Friday, March 26, 2010
12:30 to 2 p.m.
(registration opens at noon)
White Eagle Golf Club
3400 Club Drive
Naperville, Illinois, 60564

We expect a sell-out crowd for this event and ask that you RSVP to the Chamber by Wednesday, March 24 to secure your seat. The luncheon will be open to members of the community and the media. You may register online, or by calling Lisa Livingston at the Chamber at (630) 544-3365.

The luncheon will be open to the community, members of the press and ABC’s “Dancing With the Stars” will be taping the event for its program.

Thank you for your continued service to our community. We look forward to celebrating Evan’s victory with our regional community and honoring his astonishing accomplishment.

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• Naperville, Illinois hopes to have Evan Lysacek Day to honor its gold medalist (trueslant.com)

National news in housing has been mixed lately, with home sales down over previous months but still higher than a year ago. The latest NAR report is available here. The numbers for Naperville single family homes continue steady on a month over month basis and stronger than a year ago. All statistics used in these reports come directly from Terradatum Inc. Their source is reported multiple listing service transactions.

Sold Homes: The average price for a single family home in Naperville sold for $423,729 in February 2010. That is an increase of 4.9% from the February 2009 average price of $404,026. Median prices were down at $315,080 vs $345,000. The gap between average and median price is typically around 12%. Last month it was 16%: this month it is almost 26%. That type of increase is only going to be caused by a wider range of prices above the median – an indicator that the upper levels of the Naperville housing market have started, and continue to move. Over the last two months the gap is widening.

The number of units sold is also up for February 2010 vs February 2009 at 52 vs 39 or a 33% increase. Homes under contract had a much sharper increase to 106 from 65 for the same period one year ago; an increase of 63%. (Both of these numbers are higher than January 2010 also!)

Months Supply of Inventory is a measure of how long, at the current rate of sales or absorption, would it take to sell out the market. The February MSI is 7.7, vs 14 a year ago – a decrease of over 46%. On a national level, the number is closer to 16 for this February and 24 months for last year at the same time – another indication that Naperville trends differ substantially from national numbers.

As always, if you want more detailed information or to look at the numbers on a more hyper-local level (zip code or subdivision) simply Order your free Market Report or drop me an email.

In talking with new homebuyers in Naperville or transferees, I am often asked what a typical home goes for in Naperville and how much that has changed in the last several years. And the answer?  It depends; what part of town (zip code) and even within a zip code, what subdivision. The following charts give a good picture of just home wide that variation is. Of note also is the differing trends by area.

As you can see, the first chart shows all of Naperville single family homes combined. Median price has dropped from around $508,000 13 months ago to a low in November of right around $480,000. Since then we have seen a recovery in prices to just under $490,000. Keep in mind, that median price in Naperville is generally about 12% lower than average price.

Our first breakout by zip code looks at 60540 home prices. During the same time period those have gone from a high of about $590,000 to just under $500,000 in August 09 – a sharp drop over a 4 month period. Since that time median prices have been drifting in a range of $490,000 to $500,000.

Next we look at home prices in 60563. Here we see a start around the $429,000 level with a decline to the low $390,000′s in December 09. Since then we have seen a sharp rebound to about $411,000  through February 2010.

Median home prices in 60564 have yet to see much of a recovery. Since April of 09 median pricing has gone from $568,000 to about $532,000 in February 2010.

Finally we look at 60565 home prices. This area of Naperville has weathered the past year much better than any other. In fact, the median price at the end of February 2010 of $445,000, is above the median of $430,000 in April 09! There had been a rise last summer to near the current level but there was a late year valley down to the low $430′s.

This is the maximum break out level for these charts. If you want to look deeper into your specific area or subdivision, drop me an email and we can take a look.

peace

“Beginning the week of March 1, traffic on 75th Street will once again be reduced to one lane in each direction.

The lane reductions are required to complete work related to the 75th and Washington Intersection Improvement Project. Access to Clyde Drive from westbound 75th Street will also be closed at this time.

All work involving major lane closures on 75th Street and Washington Street is slated for completion in mid-August….”

So, be aware and be alert. Some one else may not be. peace.

This was the headline from a news release out of Springfield this week and marks the second consecutive month that double digit gains were seen in Illinois home sales numbers. Statewide total home sales (which include single-family and condominiums) in November 2009 reached 10,361 homes sold, up 64.0 percent from November 2008 sales of 6,317, marking the third consecutive month of year-over-year sales increases in Illinois.

And the forecast for the next several months?

“Forecasts for December, January and February indicate sales increasing robustly in Illinois and Chicago on an annual basis, but median price movements in Illinois hold the potential for a mild recovery that is not, as yet, evident in the Chicago market,” Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois.

While statewide markets seem to be stabilizing, we like to look at the numbers on a more local level. In DuPage County median prices of homes sold (single family and conds/townhomes) are relatively flat from a year ago.

In Naperville, the average median price for single family homes is about 5.8% lower than than it was a year ago. Inventory is down about 5.7% for the same period.

All told, Naperville may not be experiencing the the same rates of recovery that other areas of the state are seeing, but then again, we did not fall as sharply either. We will continue to keep an eye on the numbers and provide our interpretation as viewed thru a Naperville lens. If you want to see additional numbers or examine them in more detail contact me at 630.542.7732 or email me. Have a great holiday season and Merry Christmas.

NAPERVILLE, IL Condo 2012-02-03
Median List Price:	$150,731
Total Inventory:	304
Homes Absorbed:	15
Days on Market:	245

From a dollar perspective, prices for units Sold and Under Contract are down sharply -14% and -15% respectively. Some of this average decline in median prices could just be variations in the what units have sold (lower priced units vs higher priced units) and the seasonal nature of the market,  but some may also be reflective of a continued resetting of prices.