North Shore single family homes sales were up 20% in the first half of 2013 compared to 2012. Market times were down 27% and median prices were up 7%. That is an awesome triple play. The housing recovery that began last year has strengthened in 2013, and the North Shore market is firing on all cylinders. Some suburbs have been on fire. Wilmette homes have sold with an average market time of just 63 days and a median price rise of 14%.
Foreclosures: 15% of North Shore sales in the first half of 2013 were either a foreclosure or short sale. That number is continuing to fall which is great to see.
Interest Rates: Rates have risen sharply in the past couple weeks--especially for conforming loans (those up to 417K). A 30 year fixed rate conforming loan is at about 4. 75%. 30 year jumbo loans are also at 4.75% so have risen less dramatically since they were previously half a point higher. The 15 year conforming is at 3.65%.
Will rising rates kill the recovery? I do not think so. Rates were at an all time low and affordability was extremely high before rates starting going up. The market can handle some movement upward. If they continue to spike upward that could be a different story, but I think the current rise was probably overdue. I would not be surprised if the conforming rate even cam e down a little from its current level.
Prices: Prices recover more slowly in a market upturn than unit sales, but they have started to rise also. Overall the North Shore saw a 7% increase in median price. Individual suburbs varied with Wilmette and Glenview seeing strong gains and others less so, but overall the trend is upward.