Homes Sales Drop As The Fall Market Begins

HOME SALES DROPPED SIGNIFICANTLY, WHILE INVENTORIES CONTINUE TO RISE IN LINCOLN PARK, THE NEAR NORTH SIDE, LAKEVIEW AND NORTH CENTER IN AUGUST 2017 VS 2016.

Rising inventories of homes priced between $500,000 and $1,000,000 are causing a softening of sales and increased market times in a price point that has performed well up to this point.

There were some wild fluctuation in the results among the four neighborhoods, which played havoc with some of the cumulative numbers.

HOME SALES

August 2017 vs 2016 – Home Sales dropped 8.8%.

Results varied widely from a 20.3% decrease in Lakeview, to a 6.5% increase in North Center.

Noteworthy – Sales of homes homes priced from $500,000 to 1,000,000 dropped 7.8% , while homes priced under $500,000  dropped 7.2%.

Sales of luxury homes (priced over $1,000,000) increased 4.4%. 

 

HOMES UNDER CONTRACT

August 2017 vs 2016 – Homes Under Contract increased 13.0%.

Results  ranged from a 27.8% increase  in Lakeview to a 29.1% decrease in North Center.

Noteworthy – Most home sales that closed in August 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 August the 29.1% decrease in North Center dampened an impressive increase posted in the other three neighborhoods.

 

HOMES FOR SALE

August 2017 vs 2016 – Inventories of homes rose  6.1%.

The Near North Side reported an 18.3% increase, while the other three neighborhoods had decreases, led by North Center, whose inventory levels dropped by 8.9%.

Noteworthy –  Inventories of homes priced between $500,000 and $1,000,000, which have been relatively low all year, are beginning to rise. In August 2017 inventories in this price point rose 15.4% over the same period in 2016..

Inventories of luxury homes priced over $1,000,000 rose 9.6%, and were heavily skewed buy a 23.0% increase in the Near North Side.

Inventories of homes priced under $500,000 dropped 2.1%.

 

MONTHS OF SUPPLY OF INVENTORY

August 2017 vs 2016 – Months of Supply of Inventories rose 2.6% to 3.9 MSI.

MSI of Near North Side homes  rose 18.2% to 5.2 MSI.  Lincoln Park reported no change at 3.8 MSI, while Lakeview dropped 6.1% to 3.1MSI and North Center dropped 8.3% to 3.3 MSI.

Noteworthy – Traditionally MSI over 6.0 designates a buyer’s market and under 6.0 a seller’s market.

The MSI of the Near North Side is unusually high.

 

MEDIAN PRICING

August 2017 vs 2016 – Median Prices rose 2.1%.

Results ranged from a 9.3% increase in North Center to a 6.1% decrease in Lakeview.

Noteworthy –  Median prices of homes priced under $1,000,000  rose 2.8% in August 2017 vs 2016.

Luxury home prices dropped 4.1% during the same period.

 

DAYS ON THE MARKET

August 2017 vs 2016 – Average Days on the Market rose 29.0% to 79 days. **

Results ranged from a 4.4% decrease in the Near North Side to a 100% increase in North Center.

Noteworthy – **Market times for August were heavily skewed by high market times on the Near North Side, which reported a 100% increase over last year, from 48 days to 96 days. (We are looking into the accuracy of these numbers and will adjust our numbers if necessary.)

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