Midwest Outpacing the Coasts as Housing Cools
Just a few years ago the Midwest lagged behind every real estate market in the country. As home prices rose to astronomical heights elsewhere, we were struggling with long market times and slumping prices.
Now, according to a report:
"Redfin reports Chicago, Albany, and Milwaukee are among the housing markets holding up better than others as the U.S. faces high mortgage rates and an uncertain economy"
Nine of the 10 housing markets that are holding up best are located in the Midwest or the East Coast.
Redfin also said:
"Lake County, IL—located about 45 miles north of Chicago—is holding up better than any other metro in this analysis. It’s followed by Albany, NY, and Chicago. Rounding out the top 10 are New Haven, CT; Milwaukee; New Brunswick, NJ; Elgin, IL; Bridgeport, CT; Pittsburgh, and El Paso, TX."
This is due, in part, because homes in these areas typically sell for less than in other large metro areas. While prices here rose significantly after the pandemic, the houses were still more affordable compared to the rest of the country. Affordability is key.
Homebuyer demand is still relatively high here, but buyers who couldn't squeeze in an offer during the height of the market can now get their offers accepted. With fewer bidding wars and lower prices, buyer demand will remain strong.
Sellers, however, should be aware that more deals are falling through than a year ago. Buyers will walk away from inspection issues since their financial commitment is larger due to high rates.
Expecting to get what neighborhood homes sold for in the spring of 2022 could
also spell trouble for sellers. The offers will most likely not be at full price anymore. The market is stabilizing and becoming more balanced - neither seller nor buyer has a particular advantage at this time.
Is all this true specifically in the North Shore villages of Winnetka, Wilmette, Kenilworth, Glencoe, and Northfield? Yes, but less so. Inventory is still painfully low - there are a total of 122 homes for sale in all the above villages combined. In the years between 2010-2020, Winnetka alone had more homes for sale than that.
Low inventory will continue to keep prices from dropping significantly. A very well-priced home here will sell quickly (well-priced being a subjective term, of course.)
For now, the North Shore real estate market continues to hold its own. Future developments in politics, mortgage rates, gas prices, and the economy all sway heavily in real estate decisions so changes will likely be coming.
And what market is cooling the most quickly in the United States? Seattle!
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