New Year; New Administration; New Market?

The excitement of the Obama inauguration had many people energized yesterday (Tuesday) and thinking this would be a good year. This was a welcome change since the market operated in a funk for so long. Yesterday, the positive energy was palpable.

It does seem we're in a new market. How durable it is may rely on how the new administration tackles the financial mess. If we can rid the market of the turmoil, we will be fine. Key is finding a level of stability.

In Wilmette and other North Shore towns Buyers seem optimistic. Not necessarily optimistic that they can demand really low pricing (they already know that). But optimistic that they can reach agreements on a deal. This dynamic has been missing for at least 6 months. I think today's Buyers sense that Sellers now see the market through the same "lens" and are pricing homes to create value.

Working in concert with lower prices are great mortgage rates. For the last 6 months securing a mortgage was a challenge. As 30 Year Fixed rates drop below 6%, buyers and sellers are coming together. Deals are getting done.

We are in a different market but the disciplines we learned over the last 12 months still remain. For Sellers, pricing is Critical. For Buyers knowing the inventory, major trends and values are key. If one can create motivating value, the other will act.

I posted the December recaps for Wilmette and Evanston here. I'll update each in a few weeks to show January activity. Check these out. In 2009 Wilmette has been somewhat slow on new listings. That will support pricing. Winnetka has seen significant activity and inventories are modestly higher. Evanston also has seen new inventory. I've seen much of the new inventory and, so far, pricing is "okay". I strongly encourage Sellers to be sharp and know their competition.

Have a great new year.

DS