HOME SALES DROPPED SLIGHTLY AND INVENTORIES ROSE IN LINCOLN PARK, THE NEAR NORTH SIDE, LAKEVIEW AND NORTH CENTER IN JULY 2017 VS 2016.
There were some wide discrepancies in the results among the four neighborhoods, making the cumulative totals less representative of the individual results.
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.
July 2017 vs 2016 – Home Sales dropped 0.5%.
Results varied widely from a 25.9% decrease in North Center, to a 16.2% increase in Lincoln Park.
Noteworthy – Sales of homes priced under $500,000 dropped 1.7%, Homes priced from $500,000 to 1,000,000 increased 1.1% and luxury homes (priced over $1,000,000) increased 2.5%.
HOMES UNDER CONTRACT
July 2017 vs 2016 – Homes Under Contract increased 8.0%.
Results ranged from a 2.7% decrease in Lakeview to a 42.5% increase in North Center.
Noteworthy – Most home sales that closed in July 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. In July, three of the four neighborhoods reported increases.
HOMES FOR SALE
July 2017 vs 2016 – Inventories of homes rose 4.1%.
The Near North Side reported an 18.1% increase, while the other three neighborhoods had decreases led by North Center, whose inventory levels dropped by 14.0%.
Noteworthy – We continue to see inventories going in different directions when separated by price point. Inventories of homes priced under $500,000 dropped 6.5%, while homes priced between $500,000 and $1,000,000 rose 11.8%. Inventories of luxury homes priced over $1,000,000 rose 16.6%.
MONTHS OF SUPPLY OF INVENTORY
July 2017 vs 2016 – Months of Supply of Inventories dropped 2.5% to 3.8 MSI.
MSI of Near North Side homes rose 20.9% to 5.2MSI, while the other three neighborhoods reported decreases. There was no change in the 2.6MSI of homes priced under 500,000. Homes priced between $500,000 to $1,000,000 rose 5.3% to 4.0MSI. Luxury homes dropped 6.3% to 9.0 MSI reversing a rising trend of many months.
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.
July 2017 vs 2016 – Median Prices dropped 5.9%.
Results ranged from a 17.6% increase in North Center to a 9.2% decrease in the Near North Side.
Noteworthy – Homes priced under $500,000 and luxury homes priced over $1,000,000 showed modest increases in median prices, while homes priced between $500,000 and $1,000,000 dropped 3.9%.
DAYS ON THE MARKET
July 2017 vs 2016 – Average Days on the Market dropped 11.7% to 60 days.
Results ranged from a 32.5% decrease in the Near North Side to a 33.3% increase in Lincoln Park.
Noteworthy – Market times for homes priced under $500,000 dropped 11.7%, to 45 days. Homes priced between $500,000 and $1,000,000 reported no change at 53 days. Market times for luxury homes decreased 2.3% to 84 days.