Are North Shore Home Sales Starting to Slip?

By
Real Estate Agent with @Properties

The National Association of Realtors (NAR) published an article this week titled: "Existing-Home Sales Slip 2.7% in March."

It does, of course, cover the national real estate scene. So there are inherently many facts that don't apply to Winnetka and the North Shore. One of the biggest is the title itself since the North Shore villages of Winnetka, Wilmette, Kenilworth, Glencoe, and Northfield (as a whole) saw sales dip by 21%!

Of course home sales have dipped - there are so few of them to buy! The good news - for sellers - is that the median price rose by 31%. 

Another way to see the rise in home prices is by total volume.

  Units Sold Total Dollar Volume
2021 367 $405,272,628
2022 291 $425,648,021

You can see that while many more homes sold in 2021, the dollar volume was higher in 2022 for fewer homes sold.

Laurence Yun, NAR's economist, is predicting home sales to drop 10% for the rest of the year and for home prices to readjust. Sorry, but I don't think that's going to happen on the North Shore this year.

With the number of multiple offers on homes, there are many buyers who have been disappointed. I met a woman at my open house this weekend who said she'd lost out on eight homes. The majority of the winning bids are all cash. 

The article also discusses the hike in mortgage rates which started the year just under 3% and have now topped 5%. Most buyers of North Shore homes will not be deterred by that increase and many will be paying cash regardless. 

But don't ignore the domino effect when considering the effect of mortgage rates. The first-time buyer could be shut out of the market. That means the next buyer up the ladder may not be able to sell his house as quickly or for as much. And so on. This residual effect might cause some troubles in the local market eventually.

And finally, most interesting is that we have reached a point where we are back to the housing inflation of 2007:

  Median Price Average Price
2007 $1,150,000 $1,428,000
2022 $1,190,00 $1,460,000

 

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Winnetka and North Shore Real Estate Broker
Specializing in homes for sale in Winnetka, Wilmette, Kenilworth, Northfield, Glencoe, Glenview, Northbrook, and Evanston.

Comments (4)

Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Good overview of the North Shore home sales. Real estate really is local, and you know that area. And I agree about the domino effect. If first time home buyers cannot afford to purchase "starter" homes, sellers of those homes will have a hard time selling.

Enjoy your day!

May 11, 2022 04:32 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is good information to share. Have a very productive month.

May 13, 2022 04:47 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Margaret I have been saying this three months ago and many on this platform thought I was just being a dooms day predictor... needless to say I just posted something about Inflation, check it out, Endre

May 19, 2022 09:30 PM
Lyn Sims
Schaumburg, IL
Real Estate Agent Retired

Great overview of the North Shore.

May 26, 2022 06:36 AM