Last year at this time my market report showed record breaking statistics for North Shore single family home sales as the market in 2022 was exceptionally strong. This year the market has again been exceptionally strong in the first half of the year. In fact, the average market time dropped to just 49 days. Median prices went up 2% this year after large rises the last 2 years. However, the number of North Shore single family home sales dropped 29% this year. This was in large measure a result of the record low inventory that we have had for the past 2 years.
Here are the first half statistics.
|Number of Homes Sales||Average Market Time|
|1/2 yr-22||1/2 yr-23||1/2 yr-22||1/2 yr-23|
|Average Home Price (in thousands)||Median Home Price (in thousands)|
|1/2 yr-22||1/2 yr-23||% Change||1/2 yr-22||1/2 yr-23||% Change|
The above statistics are for detached single-family homes and were compiled from data collected by the Multiple Listing Service (Midwest Real Estate Data LLC), and may not include all home sales.
Prices: In 2021 and 2022 North Shore home prices rose significantly after 7 years of a flat market (2014 to 2020). This year the price rise was modest with a 2% increase for the North Shore, but it did vary among the suburbs. However, as I always point out, the sample size from one suburb in half a year is not enough to give a very reliable number, so I look mostly at the entire North Shore. As an example, Winnetka had by far the largest price increase last year at this time, but it was negative this year. What actually occurred is a few large sales overstated Winnetka’s increase last year, and so it came back in line this year.
Inventory: Inventory has now dropped for 4 years in a row. Last year we saw record low inventory and this year it dropped even further. I am now including homes on the Realtor private network in my inventory numbers since many homes are selling while listed there. Inventory is down about 25% from last year and is about 25% of a typical inventory. Wilmette currently has 40 active detached single-family homes on the market that are not under contract. In a typical year, that number would be between 150 and 200. The North Shore as a whole has 701 such homes on the market and in a typical year that number would be between 2500 and 3000.
Interest Rates: Last year at this time the 30-year conforming fixed rate was 5.5% and that was getting attention because the year before the rate was 3%. However, rates rose to 7% by last October and have been bouncing between 6 and 7% ever since then. Currently the 30-year fixed conforming rate is at its high point for the year at around 7 1/8%