The North Shore real estate market in 2022 was unprecedented in many ways. As compared to 2021, the number of detached single-family home sales went down by 25% which is a sharp drop, but given that 2021 saw an all-time high number of sales, the 2022 number was about average. Market time on the other hand went down by 28% to create a new all-time low of 47 days, and median prices went up 9% to an all-time high of $700,000. The spring market in 2022 was the strongest sellers’ market I have seen in my 30 years of selling North Shore homes. It was marked by low inventory and many quick, multiple offer sales. Here are the statistics:
|Number of Homes Sales||Average Market Time|
|Average Home Price (in thousands)||Median Home Price (in thousands)|
|2021||2022||% Change||2021||2022||% 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 at record low levels throughout 2022 and we start 2023 with a similar low inventory of single-family homes. The North Shore has 435 detached single-family homes on the public market that are not under contact. Last year at this time there were 505 such homes on the market. In 2019 there were a more normal 1664 homes on the market at that time. If the private market is included there are currently 667 active homes in the North Shore that are not under contract. Wilmette has 17 detached single-family homes on the public market that are not under contract. Last year at this time there were 12 such homes in Wilmette, and in a typical year we generally start out with about 100 homes on the market. If the private market is included Wilmette currently has 31 active homes that are not under contract. Moreover, Wilmette’s inventory continues to be very low.
Evanston has 42 detached single-family homes on the public market that are not under contract. Last year at this time there were also 42 such homes. In Glenview there are 53 such homes now, and there were 59 last year at this time, and in Winnetka there are currently 17 such homes and last year there were 28. Moreover, the record low inventory that we saw in 2022 has continued into 2023.
Prices: For the 3rd year in a row, we saw significant price increases for North Shore single family homes. Prior to 2020, we had seen 5 years of flat prices, but that trend changed in 2020. 2021 and 2022 have continued the upward movement. The median price of a North Shore single family detached home went up 9%. Every suburb saw a significant increase last year. However, we have seen prices decrease in the later part of 2022 from the highs we saw in the spring. In addition, multiple offers have become much less frequent.
Interest Rates: In 2022 interest rates went up a lot. The 30-year fixed rate started the year at about 3.25% and rose steadily throughout the year and peaked in October at about 7%. After peaking the rate has moved down a little and is currently around 6.5%. This big rate increase is partially the reason the market has slowed and prices have come down in the later part of this year.
2021 North Shore Sales Facts: The highest sale price in the North Shore in 2022 was a 6 bedroom, 10 bath, 12,000 square foot Lake Forest home which sold for 12.925 million dollars. The home is located on a 5-acre lot and features a private beach on Lake Michigan. The lowest sales price was $65,000.
The house with the most bedrooms (9), also had the most bathrooms (10 full and 4 half). This spacious Lake Bluff home, built in 1930, is on 4.6 acres and sold for 4 million dollars. It has a private lake front and a pool.