JUNE 2022 MARKET ANALYSIS FOR CHICAGO'S NORTH SIDE
May 2022 Home Sales and Units Under Contract dropped for the third consecutive month when compared to May 2021 in Lincoln Park, Near North Side, Lakeview and North Center.
Year to date home sales are up by only 1.0% vs last year and year to date units under contract are down 7.7%.
This downturn unlike others that we have experienced in the past, is not due to a lack of buyers. The problem continues to be inventory levels that cannot support current demand. Many new listings are selling quickly but are not being replaced with enough new inventory to meet last years sales.
2022 Average market times have dropped 38.6% year to date vs 2021.
Many potential sellers would love to take advantage of this market, but they have very little choice in what they can buy and higher interest rates have taken away some of their buying power.
Home Prices - while there is a lot of talk about sky rocketing home prices, the reality is a bit different. Year to date median home prices have risen only 4.5% when compared to 2021. In May 2022, home prices actually fell 0.8% against last year.
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 May will probably result in a home sales decrease in June; 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.
MAY HOME SALES
Year To Date - Up 1.0%
Month 2022 vs 2021 - Down 8.4%
Month By Neighborhood
NEAR NORTH - Up 5.2%
LINCOLN PARK - Down 12.4%
LAKEVIEW - Down 10.2%
NORTH CENTER - Down 32.8%
Month By Price Point
Under $500,000 - Down 11.4%
$500,000 to $1,000,000 - No Change
$1,000,000 to $2,000,000 - Down 15.5%
Over $2,000,000 - Down 22.5%
MAY HOMES UNDER CONTRACT
Year To Date - Down 7.7%
Month 2022 vs 2021 - Down 12.8%
Month By Neighborhood
NEAR NORTH - Down 3.8%
LINCOLN PARK - Down 12.4%
LAKEVIEW - Down 10.2%
NORTH CENTER - Down 32.8%
Month By Price Point
Under $500,000 - Down 12.9%
$500,000 to $1,000,000 - Down 8.7%
$1,000,000 to $2,000,000 - Down 26.1%
Over $2,000,000 - No Change
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.
MAY HOMES FOR SALE
Year To Date - Down 37.5%
Month 2022 vs 2021 - Down 32.5%
Month By Neighborhood
NEAR NORTH - Down 28.6%
LINCOLN PARK - Down 38.2%
LAKEVIEW - Down 41.0%
NORTH CENTER - Down 21.8%
Month By Price Point
Under $500,000 - Down 37.8%
$500,000 to $1,000,000 - Down 27.8%
$1,000,000 to $2,000,000 - Down 29.0%
Over $2,000,000 - Down 24.0%
MAY MONTHS OF SUPPLY OF INVENTORY
Year To Date - Down 50.9% to 2.5 MSI
Month 2022 vs 2021 - Down 34.9% to 2.8 MSI
Month By Price Point
Under $500,000 - Down 36.8% to 2.4 MSI
$500,000 to $1,000,000 - Down 33.3% to 2.6 MSI
$1,000,000 to $2,000,000 - Down 36.7% to 3.8 MSI
Over $2,000,000 - Down 46.7% to 6.5 MSI
Month By Neighborhood
NEAR NORTH - Down 42.9% to 5.2 MSI
LINCOLN PARK - Down 36.4% to 2.1 MSI
LAKEVIEW - Down 39.9% to 1.8 MSI
NORTH CENTER - No Change at 1.8 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.
MAY MEDIAN PRICING
Year To Date - Up 4.5%
Month 2022 vs 2021 - Down 0.8%
Month By Neighborhood
NEAR NORTH - Up 3.0%
LINCOLN PARK - Down 6.1%
LAKEVIEW - Up 8.3 %
NORTH CENTER - Down 4.1%
Month By Price Point
Under $500,000 - Down 0.6%
$500,000 to $1,000,000 - Up 1.0%
$1,000,000 to $2,000,000 - Up 5.2%
Over $2,000,000 - Down 0.1%
MAY DAYS ON THE MARKET
Year To Date - Down 9.5% to 76 Days
Month 2022 vs 2021 - Down 46.6 to 55 Days
Month By Neighborhood
NEAR NORTH - Down 36.4% to 96 days
LINCOLN PARK - Down 41.5% to 55 days
LAKEVIEW - Down 51.3% to 39 days
NORTH CENTER - Down 43.1% to 31 Days
Month By Price Point :
Under $500,000 - Down 25.6% to 61 Days
$500,000 to $1,000,000 - Down 48.4% to 47 Days
$1,000,000 to $2,000,000 - Down 55.9% to 52 Days
Over $2,000,000 - Up Down 38.6% to 108 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.