Highlights of the December 2018 Real Estate Market in Chicago Neighborhoods
The beginning of a new year often creates a desire to resolve to do something different, better and healthier. Many of us resolve to eat better, exercise more, learn a new skill, spend more quality time with loved ones and us our electronic devices more responsibly.
Annual evidence indicates that many people also start thinking more seriously about their real estate plans, which translates in a bump of listing and buying activity each January. The same appears to be the case again on 2019 for much of the country.
But let's take a look at how the market performed in December, which traditionally is one of the slowest months in real estate activity.
Gold Coast, Streeterville, River North and Magnificent Mile
New listings were down 8% and closed sales were down 37% from December 2017. This resulted in an increase of inventory by 12%. Prices of sold condominiums also decreased by 6.4%, even though year to date they still showed a 1.2% increase. This shows once more that December is the best month to buy real estate.
In the South Loop, there were more listings but less sales, which resulted in an increase of inventory of available condos for sale. Interestingly, the median sales price rose by 5.7% in December, which contributed to a 1.2% price increase year to date.
In December, new listings fpr both single family homes and condos were down drastically. Sales were down almost 50% from the year before!This resulted in an increase on inventory by more than 18% and it also had a negative effect on the median sales price, which was down by more than 18% for houses and by 9% for condos. Year to date, though, prices were up by 1.1% for houses and 2% for condos.
In Lake View, there were more homes listed on the market than the previous year, but less closed sales. This resulted in an increased inventory by 12.7%, compared to a year prior. Median sales prices of closed houses decreased by 10% in December but year to date, prices for houses increased by 16%. Prices in the Lake View area are increasing much more than in Lincoln Park, especially for houses.
New listings decreased slightly in December compared to December 2017 but closed sales decreased by more than 20%. this resulted in an 8% increase in inventory. Median sales prices for houses increased both for the month and year to date. Prices in this part of the city are increasing at a higher rate than older, established areas, making West Town one of the best places to invest right now. The area includes Wicker Park and Bucktown.
This area includes the West Loo, which continues to offer some of the best investment options in the city. Even though December was a slow month for new listings and closed sales, the inventory is still small, because of the relatively short market time. Year to date, prices were up 6.2% for houses and 3.4% for condos.
All statistics in the Loop are for condos and townhomes, as there are no single family homes in this center city location. In December, there were 27% more new listings and 27% fewer sales compared to the prior year. This resulted in an increased inventory and longer time on market, but the median sales price still saw a healthy increase of 4%.
There was a lot of activity in Edgewater in December, which was surprising, given the slowdown in all other areas. New listings and closed sales were up by 171% and 127%, while inventory decreased by 10%. However, most sales were in the lower price brackets and the median price of sold homes decreased by 31% for December. This wiped out the previous gains in prices throughout the year and the year ended with prices at the same level as at the beginning.
Both new listings and closed sales decreased in this trendy neighborhood. The low activity did not have any significant impact on prices and year to date, the median price for a condo increased by 11%.
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