HOME SALES DROPPED FOR THE 3RD CONSECUTIVE MONTH IN LINCOLN PARK, THE NEAR NORTH SIDE, LAKEVIEW AND NORTH CENTER, SENDING THE MARKET IN DIFFERENT DIRECTIONS.
The luxury market (homes priced over $1,000,000), which has been struggling, posted sales increases and a decrease in months of supply of inventory for the first time this year. This despite falling prices and rising market times.
Rising inventory levels of homes priced between $500,000 and $1,000,000 are slowing sales and increasing market times, slowing down a price point that has performed well through the first six months of the year.
September 2017 vs 2016 – Home Sales dropped 4.8%.
Results varied widely from a 14.9% increase in Lakeview, to a 19.6% decrease in North Center.
Noteworthy – Sales of luxury homes (priced over $1,000,000) increased 26% .
Sales of homes homes priced from $500,000 to 1,000,000 dropped 16.3%.
There was a 5.1% decrease in homes priced under $500,000 .
HOMES UNDER CONTRACT
September 2017 vs 2016 – Homes Under Contract increased 12.1%.
Results ranged from a 25.0% increase in North Center to a 4.4% decrease in Lincoln Park.
Noteworthy – Most home sales that closed in September went under contract in a previous month.
Units Under Contract can reflect a more accurate picture of the current month, although not every home that goes under contract closes. As a result, we have seen increases in Homes Under Contract, while Home Sales have decreased in the past few months.
HOMES FOR SALE
September 2017 vs 2016 – Inventories of homes dropped 3.2%.
The Near North Side reported an 14.5% increase. The other three neighborhoods posted decreases led by North Center whose inventory levels dropped by 16.4%.
Noteworthy – Inventories of homes priced between $500,000 and $1,000,000 which have been relatively low all year continue to rise. In September 2017 inventories, in this price point rose 7.6% over the same period in 2016 and are having a significant affect on sales and market time.
Inventories of luxury homes priced over $1,000,000 rose 7.1% and were heavily skewed by a 33.0% increase on the Near North Side.
Inventories of homes priced under $500,000 dropped 2.7%.
MONTHS OF SUPPLY OF INVENTORY
September 2017 vs 2016 – Months of Supply of Inventories dropped 4.8% to 4.0 MSI.
MSI of luxury homes priced over 1,000,000 dropped 19% to 8.5 MSI (a very significant decrease).
MSI of homes priced between $500,000 and $999.999 rose 4.8% to 4.4 MSI.
There was no change in the 2.7 MSI for homes priced under $500,000.
Noteworthy – Traditionally, MSI over 6.0 designates a buyer’s market and under 6.0 a seller’s market.
September 2017 vs 2016 – Median Prices rose 7.5%.
Results ranged from a 16.8% increase in Lakeview to a 1.5% decrease on the Near North Side.
Noteworthy – Median prices of homes priced under $1,000,000 rose 0.3% in September 2017 vs 2016.
Luxury home prices dropped 12.8% during the same period.
DAYS ON THE MARKET
September 2017 vs 2016 – Average Days On The Market rose 9.0% to 73 days.
Results ranged from a 9.9% decrease on the Near North Side to a 31.0% increase in Lincoln Park.
Noteworthy – Market times for luxury homes priced over $1,000,000 rose 13.4% to an average of 152 days.
Homes priced between $500,000 and $1,000,000 posted market time increases of 22.6% to an average of 65 days.
Homes priced under $500,000 saw a 15.8% drop in market time to an average of 48 days.