The Market continued to soften in September 2016 vs 2015 in Lincoln Park, the Near North Side, Lakeview and North Center. While some of this is seasonal, there are some interesting trends emerging.
Here are 5 "take aways" from our October market update.
1. Sales continue to drop against last year
September 2016 homes sales fell 5.1% vs 2015 which was the fourth consecutive month. Homes priced under $500,000, which have been driving the Spring / Summer market fell 9.8%. Low inventories seem to be the culprit for homes in this price range.
2. Inventories continue to go in different directions
Inventory levels fell 5.2 % in September 2016 vs 2015; however, inventories of homes priced under $500,000 dropped 23.4% while luxury homes (priced over $1,000,000) rose 19.4%.
3. The Same for Months of Supply Of Inventory
It is generally recognized that anything over 6.0MSI is considered a buyers market and anything under a sellers market. In September 2016 there were 2.6 MSI for homes priced under $500,000, 4.1 MSI for homes priced between $500,000 & $1,000,000 and 9.9 MSI for luxury homes priced over $1,000,000.
4. And for Market Time
There was no change in Average Days on the Market in September 2016 vs 2015; however, market time for homes priced under $500,000 dropped 4.9% while luxury homes increased 4.0%.
5. Median Prices Are Up
Despite a softening of the market Median Prices rose 7.8% in September 2016 vs 2015. Luxury home prices surprised everyone by increasing 9.4%.