Glenview

Low Inventory, Fast Sales In Southgate & Tower Crossing

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Southgate is a luxury development in The Glen, Glenview, Illinois with 239 single family homes.  Throughout 2013 there have been very few of these homes for sale at any given point in time.  In fact, last week there were none.  1 home came on the market this week.  It is likely to be under contract soon.

The lack of sellers is the primary reason for low inventory in Southgate, of course, but AVAILABLE inventory is determined not only by how many homes are offered for sale but also by how quickly they are sold.  Well, Southgate single family homes – when they do come on the market – sell so quickly that the cupboard remains bare or nearly so most of the time.  Looking at the 10 non-distressed homes (not bank owned, not short sales) that have either sold this year or are currently under contract, 5 went under contract in 9 days or less.  1 went under contract in 30 days; and the remaining 4 sold within a respectable 2 – 4 months period.  That’s fast, especially when you consider that the average price in 2013 has been over $1.1 million.

I also track the Tower Crossing development closely.  Tower Crossing in The Glen has 154 luxury town homes with 3031 to 4105 sq ft depending on model.  Home prices are typically between $650,000 and around $800,000.  As of mid-July, 17 homes have sold this year or are under contract vs. 11 sold in all of 2012.  Yet it’s been rare this year when more than 3 homes have been for sale at the same time.  Of 4 recent sales that I have made in Tower Crossing, 3 were contracted within a week; and the 4th had offers before the home was listed.

So the luxury home market is alive and well in The Glen.  If you would like to know more about homes in The Glen, please contact Margaret Ludemann, resident of The Glen, @properties Realtor.  847-401-1802.

 

Buying a Home In the Glen Now vs. Waiting

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I have been speaking with a homeowner in The Glen (in Glenview, Illinois) who is interested in buying a larger home.  He currently owns a beautiful home in the Chapel Crossing neighborhood with a market value of $800,000.  He is interested in purchasing a home in Southgate, and he is willing to pay $1 million.

My client, let’s call him Bob, is concerned about the return he will receive on his current home which he paid $875,000 for a few years back.  He wants the larger Southgate home, but he doesn’t want to take the loss on his current home.

Together we looked at the current and projected increases in Glen home prices and interest rates.  He felt comfortable projecting an increase in Glen home prices of 12% in three years.  Interest rates are low, but they are moving up.  In fact, they have increased more than a point in the last 6 weeks.  Based on projections of a number of experts, Bob decided to project an increase in mortgage interest rates of 2.1% in three years.  So we did the math, and here are the results.

  • While Bob would lose $75,000 on his current home, his $1 million Southgate purchase would be $120,000 higher in three years.
  • If Bob bought the new home now, he would put $200,000 down (assuming 20%) vs. $224,000 in three years due to its appreciated value.
  • In three years Bob would be financing $896,000 rather than $800,000 today.
  • His mortgage would be $1,600 more each month if he waits three years.

The lesson is this:  If you are buying a more expensive home in a period of rising prices and rising interest rates, it’s often best  to not wait; take the loss on your current home now.  You will likely make up the loss on your next purchase, and you will end up paying less overall.  I will point out, though, that no one can be certain what will happen in the future.  So, be conservative in your projections and consider all options.

Margaret Ludemann, resident of The Glen, @properties Realtor, 847-401-1802

Rising Home Sales & Prices in The Glen

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Recently I was asked to give a presentation about the real estate market to a group of business men and women.  While preparing my presentation I was struck by the words I saw on my laptop’s screen, words that I had written, but startling none-the-less:  sales are up, prices are up, time on market down, far fewer distressed properties.  Seeing these words on the screen put a smile on my face.  I decided to create another slide that I would have prepared not very long ago:  sales stagnant, prices flat & still falling in some areas, time on market still way too long, too many distressed properties dragging down prices.

Bob Dylan was right, The Times…they are a-changin’

Real estate in The Glen is doing quite well.  Most north shore communities saw increases in prices in 2012 of between 2% – 3%, most of those gains being won late in the year.  But prices in zip code 60026 (dominated by The Glen) rose 4.5% last year, in contrast with greater Glenview (zip code 60025) at 2.9%.  While there are many reasons for The Glen’s superior price performance, I believe the attractiveness of our community’s lifestyle is at the top of the list.  Glen Town Center’s many shops and restaurants (as well as its theater, spa, book store and art gallery), along with Lake Glenview, Gallery Park and golf courses, make this a particularly wonderful place to live.  Our variety of homes, from stately single family homes in Southgate, Chapel Crossing, and Landings to stunning townhomes and villas Tower Crossing, Cambridge, and Regency also attract buyers.

Improving prices are welcome news to Glen homeowners, but buyers have reasons to smile as well.  Prices are still well below their peaks of 5 years ago.  North shore communities are still between 20.5% and 26.1% below those highs.  So this is a great time to buy a Glen home while prices are still below their peaks and before they get any higher.

Margaret Ludemann, resident of The Glen, @properties Realtor

New Glen Homes On the Drawing Board

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With less than 1% of The Glen’s existing homes currently for sale, it was encouraging to hear of a new development on the drawing board.

Glenview officials preliminarily approved a plan to sell 29 acres of land in the Glen to Edward R. James Partners.  Upon final approval and closing, the James group proposes to build a new housing development north of West Lake Avenue and west of Shermer Road.  This would place the development to the southeast of the new Pulte development called Regency and within a couple of blocks of two golf courses, The Glen Club and Prairie Golf and Paddle Club.  It will be a 5 – 10 minute walk to Glen Town Center.

While James has not as yet released details, I do know that two and three story townhomes are planned in addition to “cluster homes” which will offer first floor master bedroom suites.  Each home is likely to include three bedrooms.  The target market for the new James homes is empty nesters.  In fact, James predicts that the development will add only 22 children to school districts 34 and 225.  Edward R. James Partners has a reputation for quality, and has won numerous awards during its 50+ years of home building.  It also has experience in the Glen; it was the developer of the very popular Southgate neighborhood.

The James development, unnamed as yet, will compete with other new construction in the Glen.  Regency and Patriot Commons both plan additional phases.  Regency is currently selling phase 2.  Patriot Commons’ development schedule is unknown.  3 existing developments, fully built and sold, provide other town homes and villas, sold by current owners. These are Tower Crossing, Cambridge, and Southgate.

Margaret Ludemann

Glen Resident and @properties Realtor, 847-401-1802

How fast are Glen homes selling? REALLY FAST!

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Don’t blink your eyes or you’ll miss the sale of a home in The Glen.  Really!

The days on market for homes in The Glen have gone from a snail’s pace a couple of years ago to “not bad” last year to warp speed in 2013.  About a month ago I put a Tower Crossing townhome (Blackstone model with 3840 sq ft) on the market at $789,000, and it sold the same day.

A couple of weeks ago I put a single family home on the market in Glenview.  The next day I had 50 people tour the home with appointments, and a day later over 70 people attended my open house.  A contract was signed within 4 days.

A couple of days ago I put another Tower Crossing townhome on the market at 11am.  I received my first call  36 minutes later.  I showed the home over the lunch hour, and a purchase contract was in by 3pm.  It took 4 hours to sell a property listed at $699.000.

The same dynamic is occurring throughout the several neighborhoods in The Glen and in greater Glenview.  So, what’s going on?  Well, the real estate market has turned.  Buyers used to have all of the leverage.  So they made low ball offers, many of which were accepted by desperate sellers.  But now…well, there are only 2 homes for sale in the uber-upscale Southgate neighborhood of 299 homes.  Not a typo.  TWO!  In Tower Crossing’s 154 home development only 5 homes are for sale.  Limited inventory and high demand can be seen in other Glen communities such as Chapel Crossing, Landings, and Cambridge.

So anyone interested in buying into The Glen needs to move fast.  But…it’s worth it to live in this magnificent community.

Margaret Ludemann (847-401-1802)

Resident of The Glen, @properties Realtor