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

OVERVIEW

July 2019 represented the 21st consecutive month of home sale DECREASES aNd inventory increases on the Near North side, Lincoln Park, Lakeview & North Center. This continues to have an impact on the YTD numbers below.

Home sales in July 2019 (vs 2018) dropped 12.6% , while inventories rose 7.5%. This increased the months of supply of inventory 14.0% to 5.7 MSI.

Median prices which are down slightly for 2019, rose 4.1% in July. Unfortunately so did market times, which increased 26.6% to an average of 76 days.

While the market is still relatively healthy, the perspective changes dramatically depending on whether you are buying or selling. Buyers are feeling more empowered as inventories increase, while sellers are becoming more and more frustrated with a market that has seemed to have lost much of its urgency.

Buyers should understand there are parts of the market that are still favoring sellers, such as town homes, new construction and hot areas such as the Southport Corridor. It should also be noted that despite the downward trend, home sales in Lincoln Park are still up 1.1% for 2019.

Sellers need to focus on competitive pricing and enhanced property presentation. These are the two most important components for a successful sale in this market.

Take a breath - Emotions can run high whether you are buying or selling, particularly in a changing market such as this one. Emotional overload; however, can be a deal killer. Buyers and sellers should remember that these are business transactions and focus on the process and not the personalities. Keeping negotiations and communications as positive as possible (and that is not always easy) enhance and move the process forward.


HOME SALES

July YTD 2019 vs 2018 - Cumulative Home Sales - Down 10.8%

By Neighborhood

NEAR NORTH - Down 17.4%

LINCOLN PARK - Up 1.1%

LAKEVIEW - Down 13.2%

NORTH CENTER - Down 2.8%

By Price Point :

Over $1,000,000 - Down 4.4%

$500,000 to $1,000,000 - Down 7.2%

Under $500,000 - Down 10.6%

Noteworthy - Despite a cumulative drop of 10.8 % in sales for the past six months, Lincoln Park reported a 1.1% increase


HOMES UNDER CONTRACT

July YTD 2019 vs 2018 - Cumulative Homes Under Contract - Down 7.1%

By Neighborhood

NEAR NORTH - Down 13.5%

LINCOLN PARK - Up 2.9%

LAKEVIEW - Down 9.6%

NORTH CENTER - Up 3.2%

By Price Point :

Over $1,000,000 - Down 5.6%

$500,000 to $1,000,000 - Down 9.6%

Under $500,000 - Down 6.1%

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.  


HOMES FOR SALE

July YTD 2019 vs 2018 - Cumulative Homes For Sale - Up 10.7%

By Neighborhood

NEAR NORTH - Up 9.8%

LINCOLN PARK - Up 19.6%

LAKEVIEW - Up 16.5%

NORTH CENTER - Down 3.5%

By Price Point :

Over $1,000,000 - Down 0.7%

$500,000 to $1,000,000 - Up 14.7%

Under $500,000 - Up 15.4%


MONTHS OF SUPPLY OF INVENTORY

July YTD 2019 vs 2018 - Cumulative MSI - Up 17.3% to 5.2 MSI

By Neighborhood

NEAR NORTH - Up 19.7% to 7.1 MSI

LINCOLN PARK - Up 22.2% to 5.4 MSI

LAKEVIEW - Up 27.3% to 4.2 MSI

NORTH CENTER - No Change at 4.1 MSI

By Price Point :

Over $1,000,000 - Up 7.5% to 9.3 MSI

$500,000 to $1,000,000 - Up 19.2% to 5.7 MSI

Under $500,000 - Up 23.6% to 3.8 MSI

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


MEDIAN PRICING

July YTD 2019 vs 2018 - Cumulative Median Prices - Down 1.1%

By Neighborhood

NEAR NORTH - Down 6.0%

LINCOLN PARK - Up 4.0%

LAKEVIEW - Down 3.7%

NORTH CENTER - Down 0.9%

By Price Point :

Over $1,000,000 - Up 2.4%

$500,000 to $1,000,000 - Down 1.3%

Under $500,000 - Down 1.0%




DAYS ON THE MARKET

July YTD 2019 vs 2018 - Cumulative Market Time - Up 9.8%

By Neighborhood

NEAR NORTH - Up 21.1%

LINCOLN PARK - Up 8.9%

LAKEVIEW - Up 17.6%

NORTH CENTER - Down 2.3%

By Price Point :

Over $1,000,000 - Up 5.2%

$500,000 to $1,000,000 - Up 11.3%

Under $500,000 - Up 12.5%


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 your 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.