HOME SALES DROPPED AND INVENTORIES ROSE for the 2nd consecutive month IN LINCOLN PARK, THE NEAR NORTH SIDE, LAKEVIEW AND NORTH CENTER IN May 2017 VS 2016.
While this is a cause of some concern, Units Under Contract and Median Prices rose during the same period.
Low inventory levels of homes priced under $500,000 and high inventory levels of luxury homes, continue to cause issues in both markets. Supply and demand are out of balance in each price point
May 2017 vs 2016 – Home Sales dropped 2.8%.
Results ranged from a 5.9% decrease in Lincoln Park to a 5.2% increase in North Center.
Noteworthy – North Center was the only area with an increase over last year. This was the first time this year that all three price points reported sales decreases.
HOMES UNDER CONTRACT
May 2017 vs 2016 – Homes Under Contract increase 9.1%.
Results ranged from a 17.0% increase in Lakeview to a 2.3% increase in Lincoln Park.
Noteworthy – Most home sales that closed in May 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. Despite sales decreases the significant increase in Homes Under Contract is a positive sign.
HOMES FOR SALE
May 2017 vs 2016 – Inventories of homes rose 8.4%.
Results ranged from a 17.0% increase on the Near North Side to a 3.5% decrease in Lakeview.
Noteworthy – We continue to see inventories going in different directions when separated by price point. Inventories of homes priced under $500,000 dropped 11.4%, while homes priced between $500,000 and $1,000,000 rose 20.0%. Inventories of luxury homes priced over $1,000,000 rose 30.2%
MONTHS OF SUPPLY OF INVENTORY
May 2017 vs 2016 – Months of Supply of Inventories increased 8.8% to 3.7 MSI.
MSI of Lakeview homes and homes priced under $500,000 dropped, while all other neighborhoods and price points rose against last year. May MSI's ranged from 2.3 for homes priced under $500,000, to 9.7 for luxury homes priced over $1,000,000.
Noteworthy – Traditionally MSI over 6.0 designates a buyer’s market and under 6.0 a seller’s market. The numbers above highlight the differences between the two price points.
May 2017 vs 2016 – Median Prices rose 10.2%.
Results ranged from 42.3% increase in North Center to a 5.3% decrease on the Near North Side.
Noteworthy – While there have been some exceptions by neighborhood and price point, Median Prices have been steadily increasing since January.
DAYS ON THE MARKET
May 2017 vs 2016 – Average Days on the Market dropped 2,9% to 65 days.
Results ranged from 10.3% decrease in Lakeview to 53.3% increase in North Center.
Noteworthy – Market times for homes priced under $500,000 dropped 9.8%, to 46 days. Homes priced between $500,000 and $1,000,000 reported a decrease of 20.0% to 56 days. Luxury homes increased 25.2% to 159 days.