Chicago Real Estate Market Update - October 2018

Posted by Andreas Holder on Wednesday, November 28th, 2018 at 4:19pm.

How's The Market In Your Neighborhood?

Albany Park in October

 

What's new this month? 

Sales of existing homes and new listings continue to be on track of growth, due to the strong economy. Housing affordability is becoming a growing concern due to price increases, and is starting to affect new construction of single family homes. Builders are showing a sign of caution as prices of homes and mortgages rates increase. While housing is still considered relatively affordable, measures of affordability have shown a decline over the past years. 

Meanwhile, Chicago has been named one of the top 10 cities in the world. Global tourism and real estate advising group Resonance Consultancy named Chicago as one of the best cities in the world. Chicago was ranked number seven on the list because of its wide array of dining options, stunning architecture and impressive infrastructure. It is one of the world's best cities to live!

Get this: The Global Real Estate Council (which I am a member of) was founded on the belief that Chicago is a world-class city. As the Windy City continues to evolve, so does its international appeal.

Now, let's look at how the real estate market trended in October in some select Chicago neighborhoods.

Gold Coast, Streeterville, River North and Magnificent Mile

Compared with October 2017, new listing were down by 3% and closed sales were down by 14%. This resulted in an increase in inventory by 8%. Even though prices of houses and condos decreased from a year ago, year-to-date prices still increased by almost 3%.  

View the October Report for the Near North Side here

 

Lincoln Park

This area saw a substantial increase in activity over a year ago. New listings increased by 20% and closed sales increased by 11%. Prices increases as well, both on a monthly bases as well as year-to-date. Inventory is still solid for houses and condos but the absorption rate is quite different. The absorption rate measures how long it will take for an inventory to be absorbed at current sales volume. For houses in Lincoln Park, it would take 17 months to absorb the entire inventory, but for condos it would only take less than one month.  

View the Lincoln Park Report here

 

Lakeview

There was an increase of active listings (+19%) but a decrease in closed sales (-8%). Prices of sold houses went down but year-to-date are still up 16%. Prices of condos year-to-date are up 3%. Similar to Lincoln Park, the demand on condos is much higher than houses. 

View the Lakeview Report here

 

Edgewater

In this North neighborhood, new listings as well as closed sales were down in October compared to a year ago. Year-to-date prices of houses and condos are virtually unchanged from last year, which means that the market has flattened. 

View the Edgewater Report here

 

Lincoln Square

New listings were up by 11% and closed sales down by 32% in October, which meant an increase in market time. It's still a seller's market though, with year-to-date prices of condos up a robust 11%. This area continues to enjoy healthy growth, especially on the condo market. 

View the Lincoln Square Report here

 

Logan Square

New listings and closed sales were both down in October, which resulted in an increased market time and inventory. However, prices were up by 50% for houses and 27% for condos! Even year-to-date prices are up substantially, 22% for houses and 8% for condos. This area is showing robust growth and prices keep going up. 

View the Logan Square Report here

 

North Center

This area saw a decline new listings but increased sales, which led to a lower inventory. Prices stabilized in October and actually decreased year-to-date, indicating a buyer's market. Now seems to be a great time to buy in this area, because inventory is tight and market times are low. Prices are likely to increase soon.  

View the North Center Report here

 

Loop

New condominium listings were up by 20% in October but sales were slightly down, resulting in a higher inventory. This also had a negative effect on prices, which drove prices down 1.3% year-to-date. This is currently a buyer's market and a great time to buy in this area. 

View the Loop Report here

 

West Town

New listings in this area were up by 19% in October and closed sales were down by 17%. The increased inventory and market time had no effect on the prices, which rose again in October and are up almost 5% for the year. This area remains very popular, especially for condos with less than one month of inventory on the market. 

View the West Town Report here

 

Near West Side

While new listings increased, sales numbers stayed the same, resulting in a higher inventory and higher market time. However, the inventory on condos is so low that prices continue to increase. Prices of houses are up3% for the year and for condos 7%. With the rapid economic expansion in the neighborhood, this trend will likely continue for the foreseeable future.

View the Near West Side Report here

 

Near South Side

Listings of new homes and sales were both down for the month. Inventory and market time are both up for the year, which had a negative effect on prices. Prices for houses and condos are down 19% respectively and 2% for the year. With more new construction inventory coming on the market next year, this trend will likely continue. 

View the Near South Side Report here

  

Andreas Holder, Chicago Real Estate AgentAre you thinking about buying a home this year in Chicago? Andreas Holder can help! Let him be your guide to the downtown Chicago real estate market and help you find a home that not only matches your needs, but your lifestyle too.
Learn more about Andreas or start your home search now.

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