The North Shore real estate market in 2020 started slow due to the pandemic, but then rebounded and had a very strong year. As compared to 2019, the number of detached single-family home sales went up by 25%, median prices went up 8%, and market times stayed the same. This broke the pattern of sideways movement that we had seen since 2015. These strong numbers were not the case across all of Chicagoland as some downtown markets had poor years with slow sales and price drops. It was a year in which moving to the suburbs was popular. Here are the statistics:
|Number of Homes Sales||Average Market Time|
|Average Home Price (in thousands)||Median Home Price (in thousands)|
|2019||2020||% Change||2019||2020||% 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.
Inventory: Inventory was low throughout 2020 and we start 2021 with a very tight inventory of single-family homes. The North Shore has 932 detached single-family homes on the market that are not under contact. Last year at this time there were 1664 such homes on the market. Wilmette has 51 detached single-family homes on the market that are not under contract. Last year at this time there were 80 such homes in Wilmette. Evanston has only 47 detached single-family homes on the market that are not under contract. Last year at this time there were 145 such homes. In Glenview there are 117 such homes now, and there were 186 last year at this time, and in Winnetka there are currently 50 such homes and last year there were 71. Moreover, every suburb has seen a large decrease in its inventory of detached single-family homes.
Prices: After moving sideways for 5 years, prices went up in 2020. The year started slow and initially it appeared that prices might decline. But as the hot summer market kicked in with a below average home inventory, prices went up for North Shore detached single family homes. The median and average sale price saw an 8% statistical increase. Part of that statistical increase could be the fact that there was a very large increase in sales at the upper end of the market. 2020 saw 38% more sales for North Shore homes at or over 2 million dollars than in 2019. Moreover, I think the actual increase in prices is probably a little less than the statistical 8% number, but nevertheless there was a significant increase.
Interest Rates: Another amazing aspect of the 2020 real estate market was the steep decline in what seemed like excellent rates at the start of the year. The year started with conforming 30 years rates at about 3.5%. By mid-year they had dropped to 3%, and now they have dropped to 2.5% for purchases. Rates are a little higher for refinances. These all-time low rates are encouraging buyers.
2018 North Shore Sales Facts: The highest sale price in the North Shore in 2020 was a very dated 4 bedroom Winnetka home built in 1926 which sold for 9.5 million dollars. Another pertinent fact is the home is located on an acre lot with a 100 feet of beach front. In other words, it was bought for the land and location. The lowest sales price was $85,000.
The house with the most bedrooms (10), also had the most bathrooms (11 full and 4 half), was tied with the most fireplaces at 9, and had by far the most market time at 4275 days (almost 12 years). This classic lakefront home in Lake Forest is on 5 acres and sold for 5 million dollars. Known as Mayflower Place this home hosted royalty in the past. I had a chance to see this home in 2020 and it is an exceptionally beautiful grand estate.