JULY 2022 MARKET ANALYSIS FOR CHICAGO'S NORTH SIDE
June 2022 Home Sales and Units Under Contract dropped for the fourth consecutive month when compared to June 2021 in Lincoln Park, Near North Side, Lakeview and North Center.
Year to date home sales are now down 2.1% vs last year and year to date inventory levels are down 34.9%.
The post COVID market has been driven by a shortage of inventory and an abundance of buyers. In the past few months, however, rising interest rates and a plunging stock market have driven some buyers to the sidelines.
This is also affecting sellers who would like to take advantage of this market, but lack of inventory and reduced buying power have made finding their new home more difficult.
Homes that are priced well are selling quickly, but there is not enough inventory to make last years numbers, as the past few months have shown. This looks like it will be the new normal for the foreseeable future.
On a positive note, median prices rose 8.6% in June 2022 against June of last year and median market times dropped 33.7% to 51 days.
What’s Ahead - It is very difficult to predict where the market is headed due to the many national and local variables that are having an impact on neighborhood real estate markets. COVID, inflation, the stock market, interest rates, supply chain issues, rising crime and city financial issues are just some of the variables both buyers and sellers are trying to analyze before getting into the market.
The drop in Units Under Contract in June will probably result in a home sales decrease in July; however, there is still demand for homes and a rise in inventory levels could turn this market around very quickly. A recent drop in interest rates could also motivate some buyers.
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. Chicago is a big complicated city and so is the real estate market. There is no “one size fits all.” Buyers and sellers should look at market statistics for their individual neighborhood, property type and price point to get accurate data.
JUNE HOME SALES
Year To Date - Down 2.1%
Month 2022 vs 2021 - Down 15.7%
Month By Neighborhood
NEAR NORTH - Down 9.0%
LINCOLN PARK - Down 22.1%
LAKEVIEW - Down 18.8%
NORTH CENTER - Down 13.0%
Month By Price Point
Under $500,000 - Down 20.9%
$500,000 to $1,000,000 - Down 11.3%
$1,000,000 to $2,000,000 - Down 11.3%
Over $2,000,000 - Up 7.6%
JUNE HOMES UNDER CONTRACT
Year To Date - Down 10.2%
Month 2022 vs 2021 - Down 26.8%
Month By Neighborhood
NEAR NORTH - Down 27.7%
LINCOLN PARK - Down 21.1%
LAKEVIEW - Down 33.8%
NORTH CENTER - Down 10.3%
Month By Price Point
Under $500,000 - Down 33.3%
$500,000 to $1,000,000 - Down 14.0%
$1,000,000 to $2,000,000 - Down 26.1%
Over $2,000,000 - Down 35.2%
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.
JUNE HOMES FOR SALE
Year To Date - Down 34.9%
Month 2022 vs 2021 - Down 26.4%
Month By Neighborhood
NEAR NORTH - Down 22.1%
LINCOLN PARK - Down 35.0%
LAKEVIEW - Down 32.3%
NORTH CENTER - Down 19.0%
Month By Price Point
Under $500,000 - Down 30.2%
$500,000 to $1,000,000 - Down 24.6%
$1,000,000 to $2,000,000 - Down 23.7%
Over $2,000,000 - Down 16.8%
JUNE MONTHS OF SUPPLY OF INVENTORY
Year To Date - Down 48.0% to 2.6 MSI
Month 2022 vs 2021 - Down 26.2% to 3.1 MSI
Month By Price Point
Under $500,000 - Down 24.3% to 2.8 MSI
$500,000 to $1,000,000 - Down 30.8% to 2.7 MSI
$1,000,000 to $2,000,000 - Down 27.6% to 4.2 MSI
Over $2,000,000 - Down 34.7% to 7.7 MSI
Month By Neighborhood
NEAR NORTH - Down 32.9% to 5.5 MSI
LINCOLN PARK - Down 31.4% to 2.4 MSI
LAKEVIEW - Down 26.7% to 2.3 MSI
NORTH CENTER - No Change at 2.1 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.
JUNE MEDIAN PRICING
Year To Date - Up 5.5%
Month 2022 vs 2021 - Down 8.6%
Month By Neighborhood
NEAR NORTH - Up 3.4%
LINCOLN PARK - Up 6.7%
LAKEVIEW - Up 9.3 %
NORTH CENTER - Up 13.5%
Month By Price Point
Under $500,000 - Down 4.8%
$500,000 to $1,000,000 - Down 0.8%
$1,000,000 to $2,000,000 - Down4.6%
Over $2,000,000 - Down 0.9%
JUNE DAYS ON THE MARKET
Year To Date - Down 26.0% to 71 Days
Month 2022 vs 2021 - Down 33.7 to 51 Days
Month By Neighborhood
NEAR NORTH - Down 29.1% to 95 days
LINCOLN PARK - Down 24.6% to 46 days
LAKEVIEW - Down 23.5% to 39 days
NORTH CENTER - Down 63.3% to 22 Days
Month By Price Point :
Under $500,000 - Down 19.4% to 54 Days
$500,000 to $1,000,000 - Down 48.7% to 40 Days
$1,000,000 to $2,000,000 - Down 5.4% to 86 Days
Over $2,000,000 - Up Down 79.3% to 35 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.