Market Information

Real Estate Market Update — Downtown Naperville
January 1, 2002

I would like to share with you some information about our Downtown Naperville Neighborhoods and what is happening in the real estate market. As you can see from the chart below the price of homes in the Historic District/Area continues to increase. The average selling price of a home in this area in 2002 was $377,461, in 2001 it was $359,412, and in 2000 the average price was $283,844. The average price per square foot increased from $159 in 1999 to $181 in 2000, to $200 in 2001 and remained at $200 in 2002. The price per square foot is leveling off because the land value for smaller homes is greater without the home.

A combination of increased square footage and new construction costs could result in decreasing the price of an 800 square foot home, expanded to 4,000 square feet from $375 to $200 per square foot. If this is confusing I will be glad to break down the lot price, construction cost and other factors that have changed the dynamics of square footage analysis.

Our area is becoming more and more popular for major renovations, teardowns and new construction. This is bringing a whole new group of buyers into our market and should have a continued positive impact on future sale prices. Having lived here for 25 years I have seen a lot of changes in our area, some with mixed feelings. I would be interested in your opinions and thoughts about what is going on around us. If you would give me a call at 357-3635 or drop me a note at the above address I will be glad to share with you the pulse of the neighborhood.

Two major factors that are impacting sales in the area: 1) Destination Downtown Naperville, and 2) Quality of life versus quantity (e.g., the ability to walk to schools, train, restaurants, Band Shell, Riverwalk, shopping, libraries, North Central College, Carillon, Children’s Museum, the Beach, Churches, Naperville Settlement, Municipal Building, Park District activities and Naperville sponsored activities. There are also many intangibles but the main one seems to be the ability of children and families to walk to all of the above.)

I will be glad to share information on the many changes that are going on to the West, South and North of the Downtown Naperville area if you are interested. For instance, West of the Downtown area teardowns sold for as little as $150,000 and as much as $350,000 in the last year. To the South, 3 bedroom splits in the East Highland had an average sale price of $215,000 in 2001 and are now selling for well over $275,000. Just North of the tracks, teardowns are becoming a factor along with major remodeling, which has kept home prices on the rise. There are many more factors that will determine the future housing market in the Downtown area, which I will be glad to share with you.

If you want to talk about what is going on in the neighborhood, refinancing (interest rates at an all time low), or if you want a free market analysis, please call me at 357-3635.

Sincerely,

Vince Ory
Broker/Owner