North Shore Real Estate Market? (Highland Park, Wilmette: sales, foreclosure, mortgage)

[Sarah H.]

I know there are a few realtors here so I have to ask. How's it going? We bought in 2002 and I'm afraid what out house it worth now after about 150K in renovations. Are things looking up for the spring market?

Thanks for any insights.

Sarah

[chet everett]

Not enough details -- specifics of how your renovation effected the marketability of your house in relation to immeadiate competition AND how the PRICE point you bought at relates to overall comparables AND the trend of recent foreclosure / shortsale / flipper / investor AND resurgance of tear downs AS WELL AS anout half a dozen other variable are all going to be in play for JUST the value / likely asking price / likely selling price. It is also relevent to your "ability to sell and at least break even" to factor in things your initial mortgage / downpayment as well as how you financed the renovations.


I can certainly speculate on some "broad averages" --- by my recollection homes near the median price in towns like Highland Park, Wilmette & Lake Bluff that I would think "merited" $150k in renovations in 2002 probably did appreciate in the 5 years or so leading to the collapase. It is also likely that all the value of even superior quality the renovations was temporally (but abruptly) "wiped out" by the collapse & subsequent price corrections -- IF you would have tried to sell in 2008-2009. The comeback of the Northshore market that has happened over the past 4 years has almost certainly recovered much of that loss for homes that would have been near median with $150k in high value renovations -- changes that updated / increased the functionality of kitchens & bathrooms and/or moved home from a category of lower value to one of higher value by increasing bedroom & bathroom count come under this description. If you just spruced up rec room / finished basement / rebuild failing roof / spent lots of money on new windows these are unlikely to have any material gain regardless of the broad collapse...

[Rlest8]

Sarah,

Chet is correct in that it does depend on the renovations. For example if you put on a new roof, installed new mechanicals, etc., that may not be as valuable - to a buyer - as a new kitchen and updated baths.

What I do know is Wilmette is very active and has been for several months.(I think you live there) The supply is way down and the demand for properties seems to be increasing. Kenilworth is still oversupplied partly due to the average sale price of homes there, Winnetka seems to be recovering nicely. Not at the pace of Wilmette but the supply is down about 20% from this same time last year. Glencoe really saw a surge in sales. Prices were so depressed there and buyers really took advantage.

Buyers everywhere are finally getting the message that with rates so low and rents sky rocketing it is such a better investment to purchase.

Feel free to PM me if you would like specific data.

[Sarah H.]

Thanks, Chet and Rlest8. Unfortunately our renovations were heavy on what you don't see- the roof and a furnace. We also did the kitchen but did it twice- once when we thought we'd stay only 5 years then again when we thought we'd stay indefinitely. The first reno is obviously a wash. We also did a lot of decorating to update the place but decorating is subjective.

We've met with a few realtors and they're saying the same things you are. My husband feels like we should just cut our losses and move on because we could afford more if the same thing is going on at the next price level. It's just hard for me to take.

What do you think about the Winnetka school situation? Is it effecting real estate prices? We love Winnetka but won't move there because our kids are already settled in Wilmette schools. (Good memory, Rlest8!) I've heard Winnetka schools are going thru some big changes because the kids aren't prepared as well for New Trier as the kids from the other feeder schools. I've learned from a number of Winnetka moms that people are desperate to get their kids in to the private schools, something they didn't plan on when they bought their homes. It's a sad situation.

Thanks for the insights!!

Sarah

[Rlest8]

A few years ago the some of schools were going through some issues. From what I hear (my 4 are long gone from the k-8 system) they really are back on track. Some say that the "unrest" was really created by a few vocal parents who were unhappy perhaps because their expectations were not realistic. I don't know. I do know that with a few new principals at some of the schools and a new superintendent people are happy with the schools. Again, this is all 2nd hand info.
There are many families that are moving into the area specifically for the schools. I had an open today that was super busy with young couples with young kids.
Your husband is correct, you may not get what you wish for your current home but will most likely make up for that and then some on your purchase. It is a good time to upsize. Good luck.

[robinonaf]

During December month sales of home have dropped by 1% from November. This is reported by the National Association of Realtors. But still stood nearly 13% above the levels of one year ago. Means that sales of home at North Shore have risen from the year-ago month.

[middle-aged mom]

Originally Posted by Sarah H.

Unfortunately our renovations were heavy on what you don't see- the roof and a furnace.

Roofs and furnaces depreciate each year and are considered routine maintenance, not renovation of a home. If one lives in a home long enough the mechanicals and roof will need to be replaced, sometimes more than once.

The newer the roof/mechanicals, the more likely the property will sell faster than a similar home with aged systems. Then again, a spiff new kitchen and baths can trump older systems. It all depends, especially on the north shore, where houses are all different.

[Anthera]

There is a big hubabaloo right now with District 36 in Winnetka, enrollment has gone down from 2100 to 1800 in the past 6 years yet spending has increased from !2k to 19k per student. There is over 54 million sitting in a saving account basically earning no interest.

http://www.winnetka36.org/sites/defa...res091112r.pdf

The current board is voting the max increase, as a result families with young children are not moving into the district.

[chet everett]

Sounds like the curse of "crazy skinflint old people that grouse about things that any sane person ought to understand" is spreading to the North Shore...

When enrollment goes down -- as one would expect given the demographic shifts -- and locked in costs like previously negotiated salaries , operational expenses and required management costs do not decrease, then the "expenditures per pupil" will increase...

And guess what NO ONE is earning any interest on zero risk capital these days...

While there are arguements to be made for not asking for maximum allowable levy nor keeping reserves to a minimum instead of having a healthy cushion anyone that would be making those arguements is also almost certain to be severely upset should the marketability of their real estate be harmed should the controversy cause people to avoid considering the town...

[Rlest8]

Originally Posted by Anthera

There is a big hubabaloo right now with District 36 in Winnetka, enrollment has gone down from 2100 to 1800 in the past 6 years yet spending has increased from !2k to 19k per student. There is over 54 million sitting in a saving account basically earning no interest.

http://www.winnetka36.org/sites/defa...res091112r.pdf

The current board is voting the max increase, as a result families with young children are not moving into the district.

Believe me , families are moving into the district! Year over years sales are increasing in all NS towns except Kenilworth and as I said the inventory is lower for this same time last year. What one political group in spews isn't always fact. As Chet said, spending per pupil increases when a budget has been in place then enrollment declines. Some peope just can't understand this then cry foul.

Back to your original question, yes things are looking up for this spring market.