Welcome to "How's The Market?"
This month in the news: Natural disasters, changing demographics and income levels, fluctuations in the financial markets, all affect residential real estate markets. Home prices in Seattle and San Francisco have skyrocketed due to the growth of e-commerce and the explosion of technology, while markets are suffering in areas hit by hurricanes and other natural disasters.
This month, we are reminded by hurricane Florence, of the impact that such events can have on local markets. But from Katrina to Sandy to Harvey to Maria, experience shows that housing markets were bent but not broken.
Here is a snapshot of Chicago neighborhood statistics for the month of August.
According to statistics by the Chicago Association of Realtors, in the entire city of Chicago, August saw a decline of residential listings of 2.6% over last year, closed sales dropped 3.8%, and the inventory of available homes decreased by 4.4%. While activity seems to slow down, the median sales price for 2018 so far, has increased by 2.6% for detached single family homes and by 3.1% for attached single family.
Gold Coast, Streeterville and River North
In August, new listings and closed sales were both down compared to August 2017, but the inventory of homes on the market was up. This means that the time on market was also up, 31% for single family homes and 21% for condos.
This area saw an increase in activity this August versus last year. Both listings and closed sale numbers were up and the inventory of homes on the market also increased. Year to date, median sales prices increased by 8% for single family homes and by 1% for condominiums.
In August, there was a decrease in number of listings but an increase in the number of sales. Year to date, prices for single family homes increased by 12% and prices of condos increased by 2%. Single family homes seem to be in high demand as market time is going down and prices are going up.
Near West Side
This area includes the West Loop and West Town. The market consists mainly of condos, even though there is a increased demand for single family homes. Prices for both have increased substantially over the past 12 months but with an increased inventory, time on market has also increased.
Near South Side
This area has seen a drop in new listings and closed sales in August and year to date. Prices have also decreased, both for houses and condos. Combined with an increase in market time, this indicates that the area has lost some of its popularity for home buyers.
Activity has slowed in August and year to date, compared to last year, but prices have increased substantially. Time on market has also increased , which indicates that sellers are not motivated to sell quickly at lower prices.Andreas Holder on