According to the latest numbers looking at 12 months of activity, home prices in the Barrington area were up 4% in January of 2018 compared to the 12 months measured in January of 2017, with the median detached single family home price at $520,000 in zip code 60010.
That’s despite the National Association of REALTORS’ “Home Price Outlook” which projects the State of Illinois will see home prices drop by 2.1% in 2018 while prices will increase by an average of 1.9% nationwide.
NAR’s nationwide projection of 1% – 3% growth in 2018 home prices is a marked slowdown from the 5% – 7% percent annual gains of the past five years. They’re basing their estimates on four factors including current housing market conditions, interest rate effects, employment and construction momentum plus impact from the new tax law, now in effect.
“The new tax law reduces the limit on deductible mortgage debt and limits the deductibility of the real estate tax up to $10,000. These two provisions are expected to have an impact on the housing market,” according to NAR economists. “Moreover, a higher standard deduction may lessen the incentive to purchase a home, as fewer consumers will utilize mortgage interest and property tax deductions.”
A National Association of REALTORS report for Illinois predicts that mortgage rates will likely increase as The Federal Reserve continues to raise short term interest rates in 2018, causing a -1.1% impact on Illinois home prices. According to NAR calculations, there will be a -1.9% impact on Illinois home prices in 2018 due to the new tax law.
Here in Barrington, the median detached single family home sales price in zip code 60010 was $520,000 in January of 2018, when you look at 12 months of activity. That’s up 4% from $499,900 in January of 2017, which is a look on the bright side, despite NAR’s numbers for Illinois.
With the spring market on the horizon, we’ll continue to track and share these numbers to help you stay informed about home price trends throughout the Barrington area.
Do you have specific questions about property values in your neighborhood? Would you like to know more details about how things look in the different villages that make up zip code 60010? Email RealEstate@365Barrington.com or fill out the form below and we’ll follow up with more information within 24 hours.
In the meantime, stay tuned for our State of the Market report plus details about properties currently for sale. That’s coming up at 365Barrington.com, published since 2010 by local REALTOR, Liz Luby of The Luby Group with @properties.