Inventories Shaping Two Different Markets

Home sales dropped in October 2016 vs 2015 in Lincoln Park, the Near North Side, Lakeview and North Center for the 5th consecutive month.

Inventory levels are having a major impact on the market. When comparing by price point, inventory levels are going in opposite directions for luxury homes (priced over $1,000,000) and homes priced under $500,000.

Here are 4 comparatives that illustrate two very different markets  

1. Unit Inventories

Unit inventories dropped 18.6% in October 2016 vs 2015 for homes priced under $500,000. Luxury home inventories rose 23.8% during the same time period.

2.  Months of Supply Of Inventory

It is generally recognized that anything over 6.0 MSI is considered a buyer’s market and anything under a seller’s market. In October 2016 there were 2.6 MSI for homes priced under $500,000, a drop of 18.8% from last year.  Luxury homes  reached 9.9 MSI a 30.2 % increase over October 2015.

The differences in inventory levels is also affecting these important comparables.

3. Market Time

Average market times for homes priced under $500,000 decreased 21.8% in October 2016 vs 2015. Market times for luxury homes rose a surprising 51.4% during the same period.

4. Median Prices

Rising inventory levels in the luxury market drove median prices down 3.4% in October 2016 vs 2015, while decreasing inventory levels of homes priced under $500,000 raised median prices 5.8%.

 

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