July 2019 & YTD Market Analysis For Chicago's North Side

OVERVIEW

The YTD Market analysis below reflects 19 consecutive months of home sales DECREASES aNd inventory increases on the North Side and a Rapidly Changing real estate market

June 2019 home sales dropped 14.7% against last year, while inventories rose 10.4%. This increased the months of supply of inventory 18.4% to 5.8 MSI.

As we move toward a balanced market between buyers and sellers, many sellers and their agents are facing new challenges. After six years of record low inventories and pent up post recession demand, buyer urgency seems to have softened.

Buyers have many more properties to chose from and it can take a considerable amount to see them all. They also know that as the market levels out, they have more negotiating power. As a result, many buyers are looking for more move in ready homes and are less willing to do repairs or updates.

If sellers are to be successful in this market, competitive pricing and enhanced home presentation on both the internet and in person are a necessity. Repairs, updating, staging and enhanced photography are all critical components.

I have been seeing an interesting new trend at my open houses. Couples who are now living in some of the city’s most trendy areas such as River North and the West Loop are considering moving to Lincoln Park and Lake View. Some are preparing for children and schools are a major factor. Others have become tired of the congestion and overbuilding of the new neighborhoods and are looking for more a quiet residential setting.


HOME SALES

YTD 2019 vs 2018 - Cumulative Home Sales - Down 10.7%

By Neighborhood

NEAR NORTH - Down 18.5%

LINCOLN PARK - Up 1.0%

LAKEVIEW - Down 11.4%

NORTH CENTER - Down 1.8%

By Price Point :

Over $1,000,000 - Down 8.2%

$500,000 to $1,000,000 - Down 13.2%

Under $500,000 - Down 9.3%

Noteworthy - Despite a cumulative drop of 10.7 % in sales for the past six months, Lincoln Park reported a 1.0% increase


HOMES UNDER CONTRACT

YTD 2019 vs 2018 - Cumulative Homes Under Contract - Down 8.2%

By Neighborhood

NEAR NORTH - Down 15.2%

LINCOLN PARK - Down 0.4%

LAKEVIEW - Down 9.1%

NORTH CENTER - Up 4.9%

By Price Point :

Over $1,000,000 - Down 7.4%

$500,000 to $1,000,000 - Down 11.5%

Under $500,000 - Down 6.5%

Noteworthy : Most home sales that closed in June 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

YTD 2019 vs 2018 - Cumulative Homes For Sale - Up 12.5%

By Neighborhood

NEAR NORTH - Up 10.5%

LINCOLN PARK -Up 21.2%

LAKEVIEW - Up 16.0%

NORTH CENTER - Down 2.4%

By Price Point :

Over $1,000,000 - Up 0.2%

$500,000 to $1,000,000 - Up 17.1%

Under $500,000 - Up 18.6%


MONTHS OF SUPPLY OF INVENTORY

YTD 2019 vs 2018 - Cumulative MSI - Up 21.4% to 5.1 MSI

By Neighborhood

NEAR NORTH - Up 10.2% to 6.9 MSI

LINCOLN PARK - Up 29.3% to 5.3 MSI

LAKEVIEW - Up 28.1% to 4.1 MSI

NORTH CENTER - No Change at 4.1 MSI

By Price Point :

Over $1,000,000 - Up 8.1% to 9.3 MSI

$500,000 to $1,000,000 - Up 25.0% to 5.5 MSI

Under $500,000 - Up 27.5% to 3.7 MSI

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


MEDIAN PRICING

YTD 2019 vs 2018 - Cumulative Median Prices - Down 1.3%

By Neighborhood

NEAR NORTH - Down 5.7%

LINCOLN PARK - Up 6.2%

LAKEVIEW - Down 6.0%

NORTH CENTER - Down 1.9%

By Price Point :

Over $1,000,000 - Up 2.5%

$500,000 to $1,000,000 - Down 1.6%

Under $500,000 - Down 0.3%




DAYS ON THE MARKET

YTD 2019 vs 2018 - Cumulative Market Time - Up 9.3%

By Neighborhood

NEAR NORTH - Up 20.6%

LINCOLN PARK - Up 7.2%

LAKEVIEW - Up 15.1%

NORTH CENTER - Down 5.4%

By Price Point :

Over $1,000,000 - Up 7.6%

$500,000 to $1,000,000 - Up 8.1%

Under $500,000 - Up 12.7%


YOUR HOME

A logical question would be “how does all of this this affect the home that I am planning to sell or potentially buy?”

Every home is unique and a detailed analysis of your property and neighborhood is a necessity to fully understand the true market value.

There are many criteria both objective and subjective that must be analyzed in order to get a true picture.

Internet home pricing sites that claim to calculate you home’s value, use algorithms that are often wildly inaccurate, as are many market analyses from real estate agents that have not taken the time to personally tour the home.

Whether you are buying or selling a home, I would welcome the opportunity to have a conversation about your real estate needs, goals and expectations.