We’ve had quite the year in real estate here on the North Shore. With changing trends and rising interest rates, you may be wondering how these factors are shaping the landscape.
Let's dig into some of the stats to find out.
Changes in Median Sale Price
The median sale price for detached single family homes in New Trier is now up to $1,385,000. This marks a 15% increase year over year and a 65% increase since 2019. Last year, I told you that prices were pretty flat through 2023. That has clearly changed in 2024 as we saw prices back on their upward trajectory.
This graph shows the median sale price for detached single family homes in New Trier from 2019-2024.
How Have Higher Interest Rates Affected the Market?
One of the most common questions I receive is whether higher interest rates have impacted the real estate market. The short answer? Not when it comes to buyer demand.
A key indicator of this is the rise in cash transactions. Looking at trends over the past five years:
In 2019 and 2020, about 23% of transactions were cash purchases.
Over the next couple years, this percentage increased a bit.
In 2023 and 2024, the number of cash sales took off.
In 2024, 44% of all sales in New Trier were cash transactions.
This shift suggests that while mortgage rates have risen, motivated buyers, particularly those with cash, are still actively purchasing homes.
Check out this chart which shows the percentage of cash transactions in New Trier over the last 5 years.
Where the higher interest rates have impacted the market is really with sellers.
Many homeowners locked in low mortgage rates of 2-3% over the past few years, making the idea of trading up or relocating significantly more expensive.
The total number of detached single family homes sold over the last 12 months is at an all-time low as the supply still can't keep up with the demand. This is partly due to the higher rates, but also due to the fact that an incredible amount of homes traded hands from 2020-2022 when record-low rates encouraged mass movement in the market. Now, with fewer homes available, demand continues to outpace supply, making the market fiercely competitive for buyers.
The total number of homes sold over the last 12 months is at an all-time low.
What This Means for Buyers and Sellers
Unfortunately for most, the story has not changed much.
For buyers:
The market is still extremely competitive. With fewer homes available and a significant number of buyers opting for cash, the average buyer getting a mortgage is suddenly in a really tough position. Now more than ever, you need to be working with not only an experienced local agent that can help you navigate this market, but also with an experienced local lender that can provide you with options to remain competitive in this market.
For sellers:
It's all about strategy. How do you position and time your sale for the best outcome? How do you sell your house and give you time and options to find your next place or make your move as seamless as possible? Again, working with an experienced local agent is the best way to set you up for success.
We’re Here to Help
Despite higher interest rates, the North Shore real estate market remains dynamic. While sellers are more hesitant, buyer demand, particularly from cash buyers, continues to drive strong prices.
As always, we are here to help. If you are looking to buy, sell, or just have questions about the market - feel free to reach out!
Check out the video version of this blog below:
