MAY 2021 MARKET ANALYSIS FOR CHICAGO'S NORTH SIDE
The double and triple digit April Home Sales and Units Under Contract increases were the result of a very active 2021 market being compared to the pandemic market of 2020. While the numbers are certainly encouraging, they should be put into perspective. Here are four takeaways from the market analysis below.
1 - Near North Side - The Loop, Streeterville, Gold Coast and River North have been hit particularly hard by the pandemic, social unrest and crime. Home Sales and Units Under Contract have rebounded nicely; however, inventory levels are still growing at alarming rates. These increases are skewing the cumulative inventory numbers of the other three neighborhoods.
2 - Inventory Levels - While Inventory levels rose 19.2 % in April, most of the increase is due to a 44.1% increase on the Near North Side (per above). Lincoln Park and North Center showed decreases, while Lakeview showed a small increase. The Month Of Supply of inventory in these 3 neighborhoods ranged from 2.0MSI to 3.3MSI strengthening the already strong seller’s market.
3 - Home Prices - Home Sales outpaced Inventories and multiple offers are becoming more prevalent. Median home price increases; however, remain modest. Sellers should be realistic about pricing their homes and buyers should be careful not over pay because of a low inventory bubble.
4 -Building Supplies Shortage - The pandemic has produced a severe shortage of building materials. The shortage has dramatically driven up prices. This will probably be temporary, as supply catches up with demand. However, it could further hold down inventory levels as builders and renovators wait for building material prices to drop.
Please see the analysis below for your neighborhood and how it is performing.
APRIL HOME SALES
Year To Date - Up 41.3%
Month 2021 vs 2020 - Up 76.5%
Month By Neighborhood
NEAR NORTH - Up 68.9%
LINCOLN PARK Up 87.8%
LAKEVIEW - Up 69.2%
NORTH CENTER - Up 94.1%
Month By Price Point :
Under $500,000 - Up 3.1%
$500,000 to $1,000,000 - Up 22.4%
$1,000,000 to $2,000,000 - No Change
Over $2,000,000 - Down 14.8%
APRIL HOMES UNDER CONTRACT
Year To Date - Up 91.8%
Month 2021 vs 2020 - Up 245.6%
Month By Neighborhood
NEAR NORTH - Up 343.4%
LINCOLN PARK Up 227.8%
LAKEVIEW - Up 221.7%
NORTH CENTER - Up 182.4%
Month By Price Point :
Under $500,000 - Up 29.1%
$500,000 to $1,000,000 - Up 50.6%
$1,000,000 to $2,000,000 - Up 39.0%
Over $2,000,000 - Up 47.3%
Noteworthy : Most home sales that closed this month went under contract in a previous month. Units Under Contract reflects a more accurate picture of the current month, although not every home that goes under contract closes.
APRIL HOMES FOR SALE
Year To Date - Up 23.1%
Month 2021 vs 2020 - Up 19.2%
Month By Neighborhood
NEAR NORTH - Up 44.1%
LINCOLN PARK - Down 7.2%
LAKEVIEW - Up 3.1%
NORTH CENTER - Down 22.8%
Month By Price Point :
Under $500,000 - Up 42.9%
$500,000 to $1,000,000 - Up 3.9%
$1,000,000 to $2,000,000 - No Change
Over $2,000,000 - No Change
APRIL MONTHS OF SUPPLY OF INVENTORY
Year To Date - Up 6.2% to 5.1MSI
Month 2021 vs 2020 - Up 15.4% to 4.4 MSI
Month By Price Point :
Under $500,000 - Up 43.6% to 5.6 MSI
$500,000 to $1,000,000 - No Change at 5.8MSI
$1,000,000 to $2,000,000 - UP 6.0% to 8.8 MSI
Over $2,000,000 - Up 26.3% to 16.8 MSI
Month By Neighborhood
NEAR NORTH - Up 21.8% to 9.5 MSI
LINCOLN PARK - Down 36.3% to 3.3 MSI
LAKEVIEW - Down 31.7% to 2.8 MSI
NORTH CENTER - Down 45.9% to 2.0 MSI
Noteworthy - Traditionally, MSI over 7.0 designates a buyer’s market and under 6.0 a seller’s market. Between 6.0 & 7.0 is considered a neutral market.
APRIL MEDIAN PRICING
Year To Date - Up 1.9%
Month 2021 vs 2020 - Up 4.8%
Month By Neighborhood
NEAR NORTH - Up 4.8%
LINCOLN PARK - Up 10.6%
LAKEVIEW - Down 1.0%
NORTH CENTER - Up 3.9%
Month By Price Point :
Under $500,000 - Up 5.0%
$500,000 to $1,000,000 - No Change
$1,000,000 to $2,000,000 - Up 1.2%
Over $2,000,000 - Up 11.7%
APRIL DAYS ON THE MARKET
Year To Date - Down 11.2 % to 103 Days
Month 2021 vs 2020 - Down 9.3% to 88 days
Month By Neighborhood
NEAR NORTH - Up 15.2% to 144 days
LINCOLN PARK - Down 3.4% to 85 days
LAKEVIEW - Up 2.6% to 79 days
NORTH CENTER - Down 53.1% to 45 Days
Month By Price Point :
Under $500,000 - Up1.7% to 80 Days
$500,000 to $1,000,000 - Down 15.0% to 88 Days
$1,000,000 to $2,000,000 - Up 7.8% to 139 Days
Over $2,000,000 - Down 28.5% to 153 Days
YOUR HOME
A logical question would be “how does all of this affect the home that I am planning to sell or potentially buy?”
Every home is unique and a detailed analysis of your property and neighborhood is a necessity to fully understand the true market value and whether this is the right time to buy or sell.
There are many criteria both objective and subjective that must be analyzed in order to get a true picture.
Internet home pricing sites that claim to calculate your home’s value using only algorithms can be wildly inaccurate. Many market analysis from real estate agents that have not taken the time to personally tour the home can also be seriously flawed. Today’s volatility demands that you get a broker who thoroughly understands this rapidly changing market.
Whether you are buying or selling a home, I would welcome the opportunity to have a conversation about your real estate needs, goals and expectations.