THE CASE OF WINNETKA AND NEARBY SUBURBS
OVERVIEW
The addition of condo units in the homeownership inventory has vastly expanded the supply of more affordable home units to an expanding and younger home buying market. In urban markets such as Chicago, the number of condo unit sales has nearly doubled
in the past five years. There were twice as many condo sales in Chicago than there were of sales for detached units.
In the suburbs, condo sale have also increased, by 40%, between 2000 and 2005. But beecause condo production varies enormously from suburb to suburb, the price trend of condo units is quite diverse. Local condo prices are affected by the local supply of condo units, as well as by the desirability of the town in which the units are located. Most importantly though, condo prices in very desirable localities follow the rate of increase in home prices in the town. No where is this fact truer than on the Chicago North Shore, and most specifically in those localities which have a small number of condo units for sale.
CONDO PRICES AND TRENDS IN GENERAL
All suburban condo prices rose in the metropolitan area in the past five years, In the year 2000, the average suburban price was $129,969, and the average Chicago condo price back then was $118,000. By the year 2005, the City prices had risen to $189,000, for a 60% gain. Suburban condo prices went from $129,000 to $172,000, for a 33% gain.
In the City, the severe shortage of detached home units is causing the demand for condo units to explode Due to the continuing shortage of homes, prices for the better located, and newer, condo units continue to increase dramatically.
Because the suburban market is dominated by detached properties, suburban condo prices rose by only one-half the 65% increase that homes experienced over the past five years.
HIGHEST HOME PRICES IN THE METRO REGION
Market statistics, put out by Chicago Area Realtor Association in their Fast Stat data base, include home sales statistics for nearly 300 different metro communities. In 2005, only six towns broke through the $1,000,000 barrier for the average sales price for a home. The ten year trends for these select communities were as follows.
Communities with highest home prices…
COMMUNITY 2005 PRICE 1995 PRICE INCREASE
KENILWORTH $1,802,627 $616,683 +1,185,944
WINNETKA $1,532,204 $632,769 +899,435
GLENCOE $1,405,000 $549,186 +855,214
BANNOCKBURN $1,210,000 $437,500 +722,500
OAK BROOK $1,169,553 $584,303 +585,250
HINSDALE $1.025337 $423,337 +602,000
WINNETKA AND SURROUNDING COMMUNITIES:
RECENT TREND IN CONDO PRICES
COMMUNITY 2005 PRICE 1995 PRICE INCREASE (%)
WINNETKA $449,000 $225,000 +224,000
GLENCOE $433,000 $154,000 +279,000
WILMETTE $426,000 $249,000 +207,000
HIGHLAND PARK $404,000 $173,000 +231,000
NORTHFIELD $372,000 $277,000 +95,000
NORTHBROOK $354,000 $197,000 +157,000
GLENVIEW $339,000 $151,000 +188,000
A LOOK AT CONDO SALES VOLUME AND MARKET TIME
# SALES 5-YEAR ANNUAL MARKET TIME
COMMUNITY 2005 AVERAGE SALES 2005 2000
WINNETKA 27 19 UNITS 112 48
GLENCOE 11 13 UNITS 110 61
WILMETTE 89 104 UNITS 116 86
HIGHLAND PARK 115 98 UNITS 88 40
NORTHFIELD 34 39 UNITS 56 32
NORTHBROOK 267 213 UNITS 72 41
GLENVIEW 380 330 UNITS 74 39
THE TOP THREE SUBURBS FOR HOME AND CONDO PRICES
_______ 2005__________
COMMUNITY HOME PRICE CONDO PRCE
KENILWORTH $1,802, 267 NA
WINNETKA $1,532,204 $449,000
GLENCOE $1,405,000 $443,000
WINNETKA ON THE TOP
The Village of Winnetka, and the City of Glencoe, both share very high current home prices, as well as very high average condo prices. Their top average home prices, based on price increases in excess of $850,000 over the past decade, give these two North Shore communities the highest ranks for value among all towns, with the exception of their neighboring community, Kenilworth.
However, Kenilworth has virtually no condo market. Both Winnetka and Glencoe have small condo markets, with limited sales activity each year. The increasing value of the homes in both towns, when coupled with the limited supply of condo units, has caused condo units to follow the home market in both towns to post substantial price increases.
The potential for new condo production in both towns seems to be unusually intense.
Current demand is caused by a combination of the popularity of the towns, the extraordinary current value of homes there, and finally, by the scarcity of whatever condo units that have been constructed in either town.
These are indeed, rarefied numbers, and certainly well worth considering.
P Fugiel© 2006
Consultant, PROPERTY CONSULTANTS, Lake View office