Cook County real estate market remains strong, but shows signs of leveling off
As 2024 draws to a close, the Cook County real estate market remains competitive, though subtle signs of leveling off are beginning to appear.
The limited housing inventory fueling Cook County’s competitive market is a complex mix of factors. While the small, rural northeast county has historically faced housing shortages to some degree, the COVID-19 pandemic amplified the issue as remote work enabled more people to relocate to rural communities while maintaining income levels outside the county. Additionally, the rise of short-term rentals, the purchase of second homes, paired with historically low interest rates in 2020 and 2021, and a growing nationwide retiring population further contributed to the strain on housing availability.
In recent years, the housing shortage has resulted in significant increases in median selling prices for both new and existing homes, pushing homeownership out of reach for many workforce households, according to a 2022 Cook County Housing Needs Analysis report compiled by LOCi Consulting for the Cook County/Grand Marais Economic Development Authority.
Prior to the pandemic, in 2018-2019, the median home sale price in Cook County was $295,000.
In 2020-21, the median home sale price grew to $347,264.
Fast forward a few years, and the median home sale price in Cook County rose to $442,740 between October 2022-23, according to the Cook County Sales Ratio Study conducted annually by the Cook County Assessor’s Office.
However, more recently, it appears the real estate market and median home prices are starting to show signs of leveling off.
The most recent study by the Cook County Assessor’s Office, which wrapped up in early October, showed a decrease in the median home sale price in Cook County for 2023-24.
WTIP spoke with Cook County Assessor Bob Thompson following the Dec. 3 Cook County Truth in Taxation meeting, where Thompson presented recent home sale price data to the Board of Commissioner’s. Thompson told WTIP that he discovered after the Dec. 3 meeting, the numbers he provided were instead mean home sale prices, rather than median home sale prices.
Whether comparing mean or median home sale prices, the data still represents a decrease between 2023-24.
The recent October 2023-24 report showed the median home price had decreased to $419,599 – 5.2% decrease.
While the Cook County median home price has decreased, it remains higher than the approximately $275,000 median home price in neighboring Lake County and the statewide average of $331,000, according to recent data from Realtor.com and Zillow.
After an upward trend for the past five years, the slight drop in median home prices in Cook County is a sign that the real estate market might be experiencing a slowdown. And that seems to be the case for the real estate agents at TimberWolff Realty, based in Lutsen.
“I believe the real estate market in Cook County is leveling off a bit,” said Kim Wolff, owner and broker of TimberWolff Realty.
“We still have strong demand for properties that are priced for the current market,” Wolff said. But, buyers are being more reasonable, she said, and are not willing to overpay for properties as they were in years past.
Furthermore, while the demand remains high, she said properties that are too aggressively priced are sitting on the market longer. A quick glance at local real estate listings shows that the demand for properties varies by type. Many vacant lots or large 40+ acre parcels with limited access or lack of infrastructure are sitting on the market longer, as well as fixer-uppers that require a significant amount of elbow grease. In comparison, turn-key properties, particularly those located along Lake Superior or an inland lake, are selling relatively quickly.
“The strongest demand from buyers are inland lakeshore and Lake Superior homes and cabins,” Wolff said.
When it comes to buyer demographics, Wolff said, rather than seeing local Cook County workforce residents purchasing homes, she sees many “local buyers continue to get bumped by second homeowners.”
While Wolff said the TimberWolff real estate agents are not seeing as many buyers willing to overpay for properties compared to previous years, Assessor Thompson said his data shows that despite the median home sale price reduction, “We are still seeing properties selling for more than their assessed value.”
Given that properties in certain areas of the county are being purchased above the asking price, Thompson said, preliminary numbers for the 2025 assessed property valuations show that the average increase for Cook County property values may be between 7-8%, depending on the property type.
Many homeowners saw increased property values following the 2024 property value assessments. Areas in Grand Marais and Lutsen experienced an increase of 12%, while Schroeder saw an 11.5% and Tofte a 13.5% increase.
During the Dec. 3 county meeting, Thompson said that since 2020, countywide assessed property values have risen by 75%.
The Cook County Assessor’s Office will mail 2025 property valuations to residents in April. Afterward, the county will hold multiple appeal and equalization meetings in May and June.
The strong demand for housing in Cook County will remain for the foreseeable future. Still, time will only tell how the influx of ongoing housing development projects, such as Gunflint Vue, Norra Skogen, Vesta Unchained, The Heights, Hamilton Habitat, Temperance Trails, and many others, will impact the housing inventory and the overall Cook County real estate market moving forward.
Kalli Hawkins December 10, 2024
