WE HAVE PASSED THE 2017 HALF WAY POINT.
The overall market continues to be healthy; however, home sales have struggled in the past three months to keep up with last year.
Low inventory levels of homes priced under $500,000 are hurting sales but are lowering market times and raising prices.
High inventory levels of luxury homes are helping home sales, but are having a negative effect on market time and prices.
Below is our 2017 vs 2016 comparison of real estate results for the first six months in Lincoln Park, the Near North Side, Lakeview and North Center.
Jan - June 2017 vs 2016 – Home Sales rose 5.4%.
All areas reported increases which ranged from a 4.6% increase in Lincoln Park to a 7.8% increase in North Center.
Noteworthy – Sales of homes priced under $500,000 rose only 0.5%, while sales of homes priced over $500,000 rose 13.0%.
HOMES FOR SALE
Jan - June 2017 vs 2016 – Inventories of homes rose 6.3%.
Results ranged from a 13.1% increase on the Near North Side to a 7.2% decrease in Lakeview.
Noteworthy – Inventories going in different directions continue to have a profound affect on both lower price points and luxury homes. Inventories of homes priced under $500,000 dropped 14.3%, while homes priced between $500,000 and $1,000,000 rose 16.0%. Inventories of luxury homes priced over $1,000,000 rose 31.6%.
MONTHS OF SUPPLY OF INVENTORY
Jan - June 2017 vs 2016 – Months of Supply of Inventories increased 9.0% to 3.6 MSI.
MSI of Lakeview homes and homes priced under $500,000 dropped, while all other neighborhoods and price points rose against last year. Jan - June MSI's ranged from 2.1 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.
Jan - June 2017 vs 2016 – Median Prices rose 7.4%.
Results ranged from a 15.8% increase in North Center to a smaller 0.6% increase 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
Jan - June 2017 vs 2016 – Average Days on the Market dropped 14.4% to 80.5 days.
Results ranged from a 9.5% decrease on the Near North Side to a 18.4% increase in North Center.
Noteworthy – Market times for homes priced under $500,000 dropped 7.2% to 64 days. Homes priced between $500,000 and $1,000,000 reported a decrease of 3.5% to 77 days. Luxury homes increased 7.1% to 150 days.