THE LUXURY MARKET REBOUNDS FOR THE SECOND CONSECUTIVE MONTH WHILE INVENTORY LEVELS ADVERSELY AFFECT MID AND LOWER PRICED HOMES.
The luxury market (homes priced over $1,000,000), which has been struggling all year, posted sales and median price increases for the second consecutive month. With inventory levels and days on the market remaining stable, the luxury home market seems to be stabilizing.
Rising inventory levels of homes priced between $500,000 and $1,000,000 are increasing market times and slowing down a price point that has performed well through the first three quarters of the year.
Low inventory levels of homes priced under $500,000 continue to hamper median prices and market time.
October 2017 vs 2016 – Home Sales rose 3.6%.
Results varied with Near North and Lakeview posting increases, while Lincoln Park and North Center declined (13.3% and 16.3% respectively).
Noteworthy – Sales of luxury homes (priced over $1,000,000) increased 6.1%.
Sales of homes homes priced from $500,000 to 1,000,000 increased 11.5%.
There was no change in homes priced under $500,000 .
HOMES UNDER CONTRACT
October 2017 vs 2016 – Homes Under Contract increased 5.1%.
Results ranged from a 12.0% increase in Near North to a 20.5% decrease in North Center.
Noteworthy – Most home sales that closed in October 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.
HOMES FOR SALE
October 2017 vs 2016 – Inventories of homes dropped .8%.
Inventory levels dropped in three of the four neighborhoods with only Near North showing an increase (9.6% over last year).
Noteworthy – Inventory levels varied widely by price point in October.
There was no change in luxury home inventories, which have been rising all year.
Inventories of homes priced between $500,000 to $1,000,000 rose 8.4% adding to a slow down of homes in this price point.
Homes priced under $500,000 saw inventory levels fall by 7.4% further inhibiting growth in lower priced homes.
MONTHS OF SUPPLY OF INVENTORY
October 2017 vs 2016 – Months of Supply of Inventories dropped 9.5% to 3.8 MSI.
MSI of luxury homes priced over 1,000,000 dropped 24.3% to 7.8 MSI for the second consecutive month and are now at their lowest point of the year.
MSI of homes priced between $500,000 and $999.999 rose 9.7% to 4.5 MSI. In January, the MSI for this price point was 2.7.
Homes priced under $500,000 reported an MSI decrease of 7.4% to 2.5 MSI.
Noteworthy – Traditionally, MSI over 6.0 designates a buyer’s market and under 6.0 a seller’s market.
October 2017 vs 2016 – Median Prices saw a slight decrease of .3%.
Near North was the only area with a decrease in median pricing. The other three areas we either flat or posted increases, led by Lincoln Park at 7.7%
Noteworthy – Median prices of luxury homes priced over $1,000,000 rose 5.3% . This was the first increase in median prices since July.
Median prices of homes priced under $1,000,000 dropped 2.7%
DAYS ON THE MARKET
October 2017 vs 2016 – Average Days On The Market rose 12.8% to 79 days.
Results ranged from a 5.0% decrease on the Near North Side to a 32.7% increase in Lincoln Park.
Noteworthy – There was virtually no change in market time for luxury homes priced over $1,000,000 at 146 days.
Homes priced between $500,000 and $1,000,000 posted market time increases of 36% to an average of 83 days. This was the second consecutive month of significant increases for this price point.
Homes priced under $500,000 saw an 18.9% increase in market time to an average of 69 days.