Data & Statistics

One of the more fascinating and underrated statistics I have found in Lake Forest real estate is the relationship between price and premium paid. The above VIZ shows an interactive scatterplot for every closed home sale (single-family detached) in Lake Forest (60045) from 1-January-2019 to 3-March-2020.

The vertical axis shows the “Price Per Square Foot” of the home sold.

The horizontal axis is simply the price of the home sold.

(Ex: 123 Main St. is a 1,000 square foot home that sold for $500,000 and 456 Shady St. is a 1,000 square foot home that sold for $300,000. Therefore, 123 Main Street sold for $500/sf and 456 Shady St. sold for $300/sf.)

Price Per Square Foot ($/SF) is a measurement most appropriately used for finding trends in markets and is not necessarily a perfect way to compare a few or even several different homes. It is common in the commercial real estate industry to compare large buildings against projected revenue generated and market averages to determine a suitable price for the property.

Generally speaking, comparing historical data from markets across the country, as the price of a home increases the Price Per Square Foot paid decreases. The logic is that after a certain point, a buyer is not willing to pay a premium for additional living space that they may not necessarily need.

In Lake Forest, as shown in the data above, the Price Per Square Foot increases on an accelerated trajectory as the price of the home increases. This means that the more expensive the home, the more premium a buyer in Lake Forest is willing to pay. If there was no premium for luxury, the trendline would be flat, a solid floor bolted to $240/sf.

Furthermore, the data provide an illustration necessary to convincingly argue that Lake Forest is still truly a luxury home market. There are well-known editorials and journals who have incessantly underscored the decreasing prices of luxury homes along the North Shore. Overall, perhaps so. But luxury is timeless, demand for best-in-class real property is resilient, and the luxury market in Lake Forest will withstand the test of time.

If you would like a complimentary market valuation for your property, please visit:

If you have any questions or comments, please text or call my mobile at (847) 849-9828.

https://finance.yahoo.com/news/peerage-realty-partners-formalizes-substantial-195000781.html

In a famous scene from the film “Any Given Sunday,” Al Pacino, in the fictional role of a professional football coach, gives an impassioned speech to his team before a critical final game of the season.

You see, life is a game of inches. So is football. Because in either game, life or football, the margin for error is so small. One half step too late or to early, you don’t quite make it. One half second too slow or too fast and you don’t quite catch it. The inches we need are everywhere around us. They are in ever break of the game, every minute, every second.”

Analyzing home sales of $750,000 or more in Lake Forest, timing is critical. There is a common misconception that you should “list in spring.” This is not true. You should list as soon as possible after the New Year.

Let me explain:

I ran some statistics to show how critical it is to prepare ahead of time for your listing in advance. As you can see in the chart below, “New Listings” begin to increase in January and then “Sold” (closed) listings shortly following in March, April, and May.

The “Sold” homes represent when those homes actually closed. Looking further, the homes that “Sold” (closed) in any given month were “Pended” 45-60 days sooner. In short – a home that “Sold” in March was under contract in January.

The chart below provides a more accurate illustration of when to fully maximize the opportunity to sell. This shows “New Listings” vs. “Pended” listings. (Pended is when a listing is under contract with an offer).

Conclusion: listing your home in January gives you the greatest chance to sell it by virtue of that listing being seen by the most amount of potential buyers. If you list in March, you’ve already missed 40-50 buyers who went under contract on homes that could have been yours.

It would be my pleasure to speak to you about listing your home.

There is no other firm that can match our global reach and network of valued clients. Your property will be beautifully marketed across the globe both privately, in our unmatched network of valued international clients, and publicly, across prominent venues exclusive to our Sotheby’s brand – like our new partnership with Emirates Air.

List your home with Sotheby’s International Realty in 2020. We will fight for every inch.

All the best,

Patrick
[email protected]
(847) 849-9828