A spike in Lincoln Park Homes sales saved what would have been a DISAPPOINTING December On The North Side.
Home sales were down 4.1% when comparing December 2017 to 2016 in Lincoln Park, Near North, Lakeview and North Center; however, a 43% increase in Lincoln Park prevented a much more severe cumulative drop.
Despite the drop in home sales, there were encouraging signs for the 2018 market with increases in Units Under Contract and Median Prices.
Inventory levels are "leveling the playing field" between buyers and sellers as market times continue to rise.
It's probably fair to say that it is no longer seller dominated market, for homes priced over $500,000.
December 2017 vs 2016 – Home Sales dropped 4.1%.
Three of the four areas posted decreases in home sales. Lincoln Park, however, reported a 34% increase.
Noteworthy – Sales of luxury homes (priced over $1,000,000) rose for the second consecutive month with an impressive 49.1% increase.
There was no change in sales of homes homes priced from $500,000 to $1,000,000.
Homes priced under $500,000 decreased 16.0%.
HOMES UNDER CONTRACT
December 2017 vs 2016 – Homes Under Contract increased 4.3%.
There were increases in three of the four areas with only North Center posting a decrease (16.7%).
Noteworthy – Most home sales that closed in December 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
December 2017 vs 2016 – Inventories of homes dropped 1.9%.
For the third consecutive month, inventory levels dropped in three of the four neighborhoods with only Near North showing an increase (9.0% over last year).
Noteworthy – While the cumulative inventory levels dropped in December, the results varied by price point.
Luxury home inventories showed a decrease of 6.9%. Some luxury home sellers take their properties off the market for the holidays and re-list after New Years.
Inventories of homes priced between $500,000 to $1,000,000 increased.
Homes priced under $500,000 saw inventory levels fell by 6.6% .
MONTHS OF SUPPLY OF INVENTORY
December 2017 vs 2016 – Months of Supply of Inventories dropped 10.0% to 2.7 MSI.
MSI of luxury homes priced over $1,000,000 dropped for the third consecutive month (30.0% to 5.9 MSI), and are now at their lowest point of the year. This is a result of the spike in December home sales in Lincoln Park.
MSI of homes priced between $500,000 and $1,000,000 increased 6.7% to 3.2 MSI.
Homes priced under $500,000 reported an MSI decrease of 9.5% to 1.9 MSI. This is a critically low number and is having a negative impact on sales.
Noteworthy – Traditionally, MSI over 6.0 designates a buyer’s market and under 6.0 a seller’s market.
December 2017 vs 2016 – Median Prices increased 19.3%.
While median prices rose in all four areas, the 48.2% increase in Lincoln Park skewed the cumulative numbers.
Noteworthy – Median prices of luxury homes priced over $1,000,000 dropped 0.2% .
Median prices of homes priced from $500,000 to $1,000,000 increased 4.9%.
Homes priced under $500,000 increased 8.5%.
DAYS ON THE MARKET
December 2017 vs 2016 – Average Days On The Market rose 13.5% to 101 days.
Three of the four areas reported significant increases in market time with only Lakeview posting a decrease (18.7%).
Noteworthy – Market time for luxury homes priced over $1,000,000 increased 9.0% to 169 days.
Homes priced between $500,000 and $1,000,000 posted market time increases of 7.6% to an average of 85 days.
Homes priced under $500,000 saw an 11.5% increase in market time to an average of 87 days.