The spring market is one the busiest times of the year for both buyers and sellers, and March marks the halfway point of this spring real estate season in Chicago’s North Shore. Now that we’re a few months into 2023, we want to take a minute to give a real estate market update for New Trier Township. In this article, we’ll look at how the market has changed since the end of 2022, where the market is at this point in 2023, and what this all means for both buyers and sellers.
Note: For this update, we’re looking at data for detached, single-family homes in all of New Trier Township. All of the data and graphs are sourced from InfoSparks, an interactive data tool that pulls data from our Multiple Listing Service.
What is New Trier Township?
New Trier includes Wilmette, Winnetka, Kenilworth, Glencoe, and parts of Northfield and Glenview. Essentially, any area that feeds into New Trier High School is part of New Trier Township. This popular area of the North Shore covers approximately 15.9 square miles and is home to about 57,000 residents.
Here’s a map of New Trier Township for reference.
New Trier Real Estate: Current Market Trends
To really understand the current market in New Trier Township, we have to start by looking at what the market was like at the end of last year. The final few months of 2022 came with a slowdown in the real estate market in New Trier. We were seeing a kind of standoff between buyers and sellers - sellers weren’t reducing the price, and buyers were waiting it out.
In the fall, interest rates spiked, and many buyers decided to pump the brakes and wait to see what would happen in the new year. There were very few transactions in the last few months of the year, and it felt like everyone was waiting for January.
Then January 2023 came and the market took off like a rocket. The interest rate pressure was not enough to hold back the imbalance between supply and demand. There were simply not enough houses on the market to satisfy the number of buyers out there. We were seeing multiple offers on each house and 20-30 showings on each property within the first couple days on the market.
This intensity has continued into February and March, with the demand remaining strong. As seen in the graphic below, inventory is down 24% year over year in terms of new houses on the market, which is keeping demand high.
Despite the low inventory, compared to 2022, houses are currently taking slightly longer to sell and selling for slightly less.
We can see this trend by looking at the average sale-to-list price ratio, which is declining. By looking at the graphic below, you can see that in mid-2022, houses were selling for about 104% over the listing price. Compare that to March of 2023, and homes are now selling for an average of 97% of the listing price. That’s the largest drop in sale-to-price ratio that we’ve seen in the last 10 years.
In summary, here’s what we’re seeing in March 2023:
Inventory is down 24% YoY
Demand for inventory remains high
The sale-to-list price ratio is declining, dipping below 100%
Houses are taking slightly longer to sell compared to 2022
Market Predictions for 2023
So what does this all mean for buyers and sellers? Now that we’ve established the current state of the market in New Trier Township, let’s look at what these trends mean.
For Buyers
We get asked this question all the time by buyers: Are there going to be more houses coming?
Our answer: It’s likely going to stay the same.
Right now, depending on budget, buyers are typically getting 1-2 houses per week to look at and choose from. We’re not expecting this trend to change, at least not through the end of the spring season. If you’re a buyer, the clock is ticking and there likely isn’t going to be a big surge of new inventory during this spring market season. We’ve been giving the same answer since January. Now in March, the inventory situation hasn’t changed significantly, so we feel confident saying that buyers can expect more of the same.
For Sellers
Demand from buyers remains high, and if you’re considering selling your house this spring season, we’re now at the halfway point. There is still time to get your house on the market, but you’ll need to start the process soon to make it happen.
For Buyers and Sellers
Between banks collapsing, interest rates changing, and general turmoil in financial markets, there is a lot of uncertainty in the world right now. This uncertainty is adding stress to the real estate market and while it may have an impact on real estate long-term, we just don’t know yet.
However, there are always going to be concerns and uncertainty in the real estate market. That’s why finding a real estate agent who can help you navigate the market is such an important part of the buying or selling process.
Market Update Conclusion
The New Trier Township real estate market is constantly changing and shifting. With limited inventory and declining sale-to-price ratios, both buyers and sellers can make moves to take advantage of the second half of this year’s spring market. If you’re looking for a real estate agent in New Trier Township, we’d love to help you navigate the market. Check out more resources for both buyers and sellers and then get in touch with us.
