July 2019 Housing Sales Statistics For Select Chicago Neighborhoods
Welcome back to our Chicago neighborhood market report after the summer break!
How is the market? According to Tommy Choi, president of the Chicago Association of Realtors, "the market is in a stabilizing period. Days on the market remain low and prices are steady, so inventory is moving and demand is there. We expect this to continue, particularly in the heels of the Federal Reserve's rate cut."
Let's look at mortgage rates a bit more closely. Rates have continually fallen through 2019 to date and are at their lowest level in many years. At the same time, home price appreciation is slowing. Historically, these conditions meant an increase in home buying activity. This time though it's different. Home buying activity really hasn't picked up despite low interest rates and relatively low housing prices. There are several reasons. For one existing home owners already have mortgages with very low rates and they want to hold on to their homes. Secondly, inventory remains quite low, except in the luxury segment.
Here's a closer look at how the market is affecting different neighborhoods.
Gold Coast, River North, Streeterville and Magnificent Mile
In July 2019 there were 3% less new listings and 11% less sales compared to the prior year. This resulted in a market time of 101 days for condos and 51 days for houses. Year to date, median sales price for single family homes decreased by 28% and for condos by 5%. The supply of available condos is over 6 months and for houses it's even much longer. These conditions create a clear advantage for buyers.
This area includes Bucktown and Wicker Park, neighborhoods were real estate has been in high demand since the recovery of the economy. Prices seem to have reached a plateau but the market is still strong. In July, there were 31% more listings and 10% more sales compared to the prior year. Market time of new condo listings is relatively short with 54 days. Months of supply is about 3 months, which creates favorable conditions for buyers.
In July, there were 23% more new listings but 18% less sales compared to last year. This led to an increase in inventory and to longer market times of 108 days. There is over a 6 months supply which creates favorable conditions for buyers.
Near West Side
This area includes the West Loop, which has experienced a real estate boom lately due to the arrival of new company headquarters and a transformation of the area as a whole. New listings in July were 3% down and closed sales were 6% down compared to July last year, but the median price increased by 9% and inventory supply is less than 3 months. These factors create favorable conditions for sellers
Near South Side
This area includes the South Loop and Printers Row. New condo listings in July were up by 2% compared to July last year but closed sales were down by 20%. Year to date, prices are up by 4%. The supply of condos on the market is 3.6 months, which creates a favorable conditions for sellers.
This is the area North-West of Lakeview. The real estate market has been quite active in this area lately due to an upswing in new construction. However, in July new listings were down by 18% compared to July last year but closed sales were 14% up. About one third of the transactions are single family homes and two thirds are condominiums. Prices are up for the month and for the year.
Sales in Lake View were strong in July but year to date closed sales declined 9% for houses and 13% for condominiums. Prices also fell by 3.6% for houses and 6.4% for condos. The supply of available condos creates a supply of about 3.5 months which means conditions are slightly favorable for sellers.
This area north of West Town has had a very active real estate market in the past few years. In July, new listings were down by 6% and closed sales were up by 3%, compared the July of last year. Inventory of houses was up by 29% and inventory of condominiums was down by 6%. Year to date, demand for houses seems to be down while demand for condos is up. The median price for houses is down by 9% while the median price for condos is up by 2%.
In July, new listings of houses and condominiums were up by 31% and closed sales were up by 3%. This created a 14% increase in the inventory. The median price for houses fell by 1% and there is a supply of almost 6 months of house on the market. For condominiums the supply is less than 4 months, creating more favorable conditions for sellers
Posted by Andreas Holder on