JANUARY 2022 MARKET ANALYSIS FOR CHICAGO'S NORTH SIDE
2021 Recap - Despite all that we went through in 2021, the real estate market on the North Side strongly outpaced 2020.
Sales were up 44.1 %
Inventories were down 9.9%
Months Of Supply Of Inventories were down 32.2%
Median Prices were up 8.9%
Average Days On The Market were down 5.4%
2022 January Notes:
Numbers VS Near North Side - The Near North Side took a huge hit in 2020, but rebounded strongly in 2021. As a result, the cumulative real estate results for the North Side neighborhoods were heavily skewed by the Near North Side. For example, median prices for the Near North Side increased 26% in December, while Lincoln Park decreased 5.5% and Lakeview decreased 5.4%. The message here is that it is important to look at statistics of individual neighborhoods for a true understanding of market conditions. (see analysis below)
January 2022 Is Starting Strong - Traditionally, January is a slow month as buyers and sellers prepare for the spring market, which usually starts in February. January 2022 is looking like an exception, as record low inventories are bringing out the buyers. I am seeing unusually strong activity on my listings.
Price & Property Condition - Despite the severe shortage of inventory, there are properties that are not selling. Here are two major “must haves” for a successful sale.
1. Price - While we are seeing many multiple offers on properties and quick sales, the initial listing price has to reflect true market value. Overpricing listings will only lead to increased market time.
2. Move In Ready - Currently, buyers are shying away from homes that need repairs or renovations in favor of homes that are move in ready. Freshening up new listings is a must.
Please review the analysis below for your neighborhood and price point to see for yourself how they are performing. Each section below has a button that provides additional monthly, year to date and 10 year trends.
DECEMBER HOME SALES
Year To Date - Up 44.1%
Month 2021 vs 2020 - Up 24.2%
Month By Neighborhood
NEAR NORTH - Up 41.1%
LINCOLN PARK - Up 17.6%
LAKEVIEW - Up 9.2%
NORTH CENTER - Up 30.2%
Month By Price Point :
Under $500,000 - Up 16.7%
$500,000 to $1,000,000 - Up 36.2%
$1,000,000 to $2,000,000 - Up 18.3%
Over $2,000,000 - Up 61.1%
DECEMBER HOMES UNDER CONTRACT
Year To Date - Up 44.4%
Month 2021 vs 2020 - Up 13.2%
Month By Neighborhood
NEAR NORTH - Up 75.9%
LINCOLN PARK - Down 11.4%
LAKEVIEW - Down 4.4%
NORTH CENTER - Down 39.5%
Month By Price Point :
Under $500,000 - Up 9.4%
$500,000 to $1,000,000 - Up 17.1%
$1,000,000 to $2,000,000 - Up 4.3%
Over $2,000,000 - Up 62.3%
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.
DECEMBER HOMES FOR SALE
Year To Date - Down 9.9%
Month 2021 vs 2020 - Down 43.5%
Month By Neighborhood
NEAR NORTH - Down 40.7%
LINCOLN PARK - Down 49.1%
LAKEVIEW - Down 44.1%
NORTH CENTER - Down 51.8%
Month By Price Point :
Under $500,000 - Down 46.1%
$500,000 to $1,000,000 - Down 42.4%
$1,000,000 to $2,000,000 - Down 42.2%
Over $2,000,000 - Down 34.7%
DECEMBER MONTHS OF SUPPLY OF INVENTORY
Year To Date - Down 32.2% to 4.2 MSI
Month 2021 vs 2020 - Down 62.5% to 2.1 MSI
Month By Price Point :
Under $500,000 - Down 62.7% to 1.9 MSI
$500,000 to $1,000,000 - Down 60.4% to 1.9 MSI
$1,000,000 to $2,000,000 - Down 62.8% to 2.9 MSI
Over $2,000,000 - Down 65.6% to 5.5 MSI
Month By Neighborhood
NEAR NORTH - Down 62.7% to 4.1 MSI
LINCOLN PARK - Down 65.2% to 1.6 MSI
LAKEVIEW - Down 60.0% to 1.6 MSI
NORTH CENTER - Down 60.7% to 1.1 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.
DECEMBER MEDIAN PRICING
Year To Date - Up 8.9%
Month 2021 vs 2020 - Up 6.0%
Month By Neighborhood
NEAR NORTH - Up 26.0%
LINCOLN PARK - Down 5.5%
LAKEVIEW - Down 5.4%
NORTH CENTER - Up 14.6%
Month By Price Point :
Under $500,000 - Down 10.2%
$500,000 to $1,000,000 - Up 4.0%
$1,000,000 to $2,000,000 - Up 2.8%
Over $2,000,000 - Down 17.0%
DECEMBER DAYS ON THE MARKET
Year To Date - Down 5.4 % to 88 Days
Month 2021 vs 2020 - Up 11.0% to 100 Days
Month By Neighborhood
NEAR NORTH - Up 16.2% to 165 days
LINCOLN PARK - Up 23.1% to 96 days
LAKEVIEW - Down 4.1% to 71 days
NORTH CENTER - Up 6.3% to 68 Days
Month By Price Point :
Under $500,000 - Up 3.6% to 86 Days
$500,000 to $1,000,000 - Up 13.9% to 98 Days
$1,000,000 to $2,000,000 - Down 15.6% to 113 Days
Over $2,000,000 - Up 96.3% to 161 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.