Remember the days interest rates were well below 4% and hovered in that direction for years. As real estate professionals we consistently advised our clients on the temporary nature of these exceptionally low rates, emphasizing that the opportune moment to purchase was then. Unfortunately, this advice often went unheeded. Fast forward to 2022, and we witnessed the Federal Reserve enact 11 rate hikes, transitioning from a near-historical low of 0.08% to an astounding 5.33%—a peak not seen in over two decades. This brings us to a current and similarly critical juncture in the housing market, characterized by significantly low inventory levels. The availability of homes for sale in Wilmette, has sharply decreased from a robust six months' supply in June of 2019 to a mere 1.1 months today. On a It’s A Seller’s Market
brighter note, home-owners have seen a substantial increase in home values, surging by 37% since the onset of COVID-19. Highlighting this trend, the median home price in Wilmette has reached a historic 1 million marker, a significant rise from the $575,000 median in July 2012. Although we anticipate a gradual increase in inventory, not expected to mirror the rapid rise in interest rates, this shift suggests a transition from double-digit to single-digit appreciation rates. Nonetheless, sellers are poised to benefit greatly in the current market dynamics, maintaining leverage as inventory levels slowly align with demand. Home values are projected to continue their ascent, albeit at a tempered pace compared to the rapid growth of the previous years.
Q1 Single Family Data Points
WILMETTE
MCKENZIE Median Price
Median Price $999,500
$997,500
(+9.2% YOY)
(+17.4% YOY)
Original List to Close (+0.6% YOY) 101.7 Median Price Per SQFT $368 Months Supply (+7.6% YOY)
102.8 Original List to Close (+0.7% YOY)
Median Price Per SQFT
$401 (+9.6% YOY)
Months Supply 0.6 (-50% YOY)
1.1
(-8.3% YOY)
Median Days on Market
Median Days on Market
7 (0.0% YOY)
8
(+33.3% YOY)
Data Source: MRED As of 3/24
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