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%.