November 2018 real estate market highlights
What kept us up at night in November?
November and December often equates to a drastic slow-down in residential real estate, as people's focus shift from buying homes to buying gifts and plane tickets to visit family and friends. This year was different. The Federal Reserve raised interest rates one more time in 2018. While interest rate increases don't necessarily translate into mortgage rate increases, they can.
While recent stock market activity have generated some heart-pounding drops, and - to a far lesser extent - rallying rises, that volatility has not translated into the same tidal waves within residential real estate. Increasing home prices and mortgage rates have rather created a sense of immediacy for home buyers and turned others away due to affordability concerns, but these decisions tend to be linked to longer term trends rather than a reaction to a media headline or a presidential tweet.
Now, let's take a look at the residential real estate market performance in some select Chicago neighborhoods.
Gold Coast, Streeterville, River North and Magnificent Mile
In November, new listings increased by 16% and sales dropped by 9%, resulting in an increase in inventory of 8% and in a lower median sales price for the month. Year-to-date, the median sales prices rose by about 2% from November 2017 to November 2018.
Near South Side
Here too, listings increased in November (plus 5.7%), while sales were stable, resulting in a slight 3% increase in inventory. Only one single-family home sold here in November, with the rest of all sales being condos and townhomes. The median sales price was up by 5.4% and by 1.3% year-to-date.
Contrary to Near North and Near South, new listings in Lincoln Park were down by 6.6% and closed sales were up by 16.5%. Inventory was still up though, due to an increased market time. Median price of a house in Lincoln Park was up by 2.2% for the month and year-to-date. Median price for condos and townhomes was up by 17% for the months and up by 3% for the year.
Not surprisingly, new listings were down by 23% and closed sales were down by 4.4%, again resulting in a larger inventory of condos on the market. There are no sales of single-family homes in this area. Median prices of condos sold were up by 20% for by month-to-month comparison, but flat for the year.
New listings were down by 5.7% and sales of houses and condos were up by 16.3%. The inventory of homes for sale was up by 8.5% due to increased market time, which was 120 days for houses and 68 days for condos and townhomes. Lake View is an area that has seen one of the biggest prices increases in Chicago this year. Median prices for houses increased by 16.7% and median prices for condos and townhomes increased by 3.6% year-to-date.
Near West Side
Just like the other areas close to downtown, new listings and closed sales decreased in November, resulting in an inventory that grew by 32.5% for the month. The median price for houses increased 2% and the median price for a condo or townhome increased by 4.1% year-to-date.
Consistent with many other areas in the city, new listings decreased by 5.7% and closed sales decreased by 13.8% in November. This resulted in a bigger inventory, which increased by 23.1%. The median price for a house increased by 14.3% in November and more than 21% for the year! The median price for a condo or townhome increased by almost 24% in November and by 9.5% year-to-date. Logan Square continues to be a very popular neighborhood for buyers and represents a strong seller's market with relatively low inventory and high prices.
Edgewater and Andersonville
New listings increased by 4.3% and sales decreased by 26%. The median sales price for houses increased by 7% from November 2017 to November 2018 and by 0.9% year-to-date. The median price for condos and townhomes increased by 9% in November and by 0.5% year-to-date.
New listings increased by 2.9% and closed sales increased by 52.6% in November 2018 vs. November 2017. The strong sales amount resulted in a decrease of 4.9% in available inventory. The median price of houses increased by 9.2% in November but decreased by 5.5% year-to-date. The median price for a condo or townhome increased by 13.8% in November and by 11.3 % year-to-date. Even though market time is low and prices are going up, Lincoln Square still offers good opportunities for buyers.
Posted by Andreas Holder on