How's The Market?
Looking ahead, mortgage rates are expected to remain between 6% and 7%, barring a recession. The oncehoped-for return to 5% rates is now a distant memory, and buyers are gradually adjusting to the reality of higher interest rates rather than sitting on the sidelines. Nationally, home prices are projected to rise by approximately 2.6% in 2025. Locally, North Shore inventory levels remained tight throughout 2024, and if this trend persists, prices are likely to climb further. For example, Wilmette’s single-family home prices have soared by over 17% compared to last year! Demand continues to be especially strong for move-in-ready single-family homes. For now, the market is expected to remain characterized by high demand and limited inventory, keeping sellers firmly in the driver’s seat.
The North Shore housing market continues to grapple with an inventory shortage as we head into 2025. Many homeowners are holding onto their properties longer, largely due to the "rate lock" effect—hesitation to part with historically low mortgage rates. This reluctance is particularly evident among empty nesters, who face the additional challenge of finding suitable downsizing options in a tight market. At the same time, young families are migrating from the city to the suburbs, drawn by the promise of more space, flexibility for remote work, and access to vibrant communities with excellent schools. Wilmette, in particular, checks all the boxes for these buyers, and homes are being snapped up quickly. In the city, however, the housing market tells a different story. The downtown condo market is experiencing higher inventory levels and softer demand, creating opportunities for buyers.
MCKENZIE Q4 Single Family Data Points Median Price
WILMETTE Median Price $1,150,000 (+ 15% YOY) Original List to Close 103% (+1%) Median Price Per SQFT $385 (+8%) Months Supply 1.3 (+8%) Median Days on Market 8 (+14%)
$1,068,560 (+ 7% YOY) Original List to Close 105% (+3%) Median Price Per SQFT $398 (+5%) Months Supply 1 (+66%) Median Days on Market 7 (0%)
Data Source: MRED As of 12/31/2024
Made with FlippingBook flipbook maker