The real estate market remained healthy on Chicago's North Side in 2016
However, high inventory levels of luxury homes and low inventories in the lower price points have created two distinct markets.
Below are 2016 to 2015 comparisons of five key real estate indicators and my 2017 outlook for Lincoln Park, the Near North Side, Lakeview and North Center.
2016 vs 2015 – Home sales dropped 1.8%.
Footnote – Three neighborhoods experienced small decreases while North Center reported a 1.2% increase.
2017 Outlook – Flat sales with homes priced under $500,000 driving the market.
HOMES FOR SALE
2016 vs 2015 – Inventories of homes dropped 6.6%.
Footnote – Inventories of homes priced under $500,000 dropped 22.2% while inventories of luxury homes (priced over $1,000,000) rose 18.7%.
2017 Outlook – Inventory levels will be a key factor in the 2017 market. Look for new construction to add inventory in all price points.
MONTHS OF SUPPLY OF INVENTORY
2016 vs 2015 – MSI dropped 8.1%.
Footnote – MSI of homes priced under $500,000 was 2.4 while luxury home MSI was 8.5. (Under 6.0 MSI designates a seller’s market, while over 6.0 MSI is considered a buyer’s market).
2017 Outlook – Continued buyer’s market for luxury homes and seller’s market for the lower price points.
2016 vs 2015 – Median Prices rose 3.5%.
Footnote – All four neighborhoods reported increases with North Center reporting a 5.7% increase.
2017 Outlook – Median Prices will continue to rise fueled by new construction prices.
DAYS ON THE MARKET
2016 vs 2015 – There was no change in average days on the market.
Footnote – Market time for luxury homes increased 20.9% to 133 days. Homes priced under $500,000 had an average market time of 66 days, a 9.5% decrease form 2015.
2017 Outlook – Market times will rise and fall in relationship to inventory levels at each price point.