MARCH 2022 MARKET ANALYSIS FOR CHICAGO'S NORTH SIDE
Despite record low inventory levels, high buyer demand produced a very active real estate market on Chicago’s North Side in February 2022. Multiple offers and low market times continue to be common place; however, a closer look at the numbers reveals some hidden indicators.
Home Sales - February 2022 home sales rose 24.3% against last year (but dropped 15.3% against January 2022). The increase was fueled by a 61.1% increase on the Near North Side. Lincoln Park and Lakeview had modest increases and North Center had a 23.4% decrease.
Units Under Contract - February 2022 dropped 10.1% against 2021 for the second consecutive month despite a 21.6% increase on the Near North Side. Lincoln Park, Lakeview and North Center dropped 24.5%, 17.5% and 38.3% respectively. This will no doubt have a negative impact on March closed home sales.
Inventory Levels - The North Side reported a dramatic 41.5% decrease in the number of homes for sale in Feburary 2022 vs 2021. There was, however, a slight rise in inventory levels from January 2022. We have not seen inventory levels this low since 2015. This is currently the single biggest influence on current market. Traditionally, inventory levels rise in March and April as the “spring market” begins and hopefully this year will be no exception.
Median Prices - Median prices rose 9.8% in the four North Side neighborhoods; however, this cumulative increase was heavily influenced by the Near North side which rose 31.9%. The other 3 neighborhoods reported increases from 1.3% to 7.0%. It should be noted that median prices of homes priced over $500,000 rose 9.1%, while homes priced under $500,000 dropped 5.2%. This is decrease is significant for such an active seller’s market.
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.” Buyer and sellers should look at market statistics for their individual neighborhood, property type and price point to get accurate data.
FEBRUARY HOME SALES
Year To Date - Up 25.7%
Month 2022 vs 2021 - Up 24.3%
Month By Neighborhood
NEAR NORTH - Up 61.1%
LINCOLN PARK - Up 18.4%
LAKEVIEW - Up 9.5%
NORTH CENTER - Down 23.4%
Month By Price Point
Under $500,000 - Up 18.4%
$500,000 to $1,000,000 - Up 25.0%
$1,000,000 to $2,000,000 - Up 43.0%
Over $2,000,000 - Up 14.4%
FEBURARY HOMES UNDER CONTRACT
Year To Date - Down 12.0%
Month 2022 vs 2021 - Down 10.1%
Month By Neighborhood
NEAR NORTH - Up 21.6%
LINCOLN PARK - Down 24.5%
LAKEVIEW - Down 17.5%
NORTH CENTER - Down 38.3%
Month By Price Point
Under $500,000 - Down 12.0%
$500,000 to $1,000,000 - Down 1.0%
$1,000,000 to $2,000,000 - Down 8.4%
Over $2,000,000 - Up 0.3%
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.
FEBRUARY HOMES FOR SALE
Year To Date - Down 43.2%
Month 2022 vs 2021 - Down 41.5%
Month By Neighborhood
NEAR NORTH - Down 39.5%
LINCOLN PARK - Down 44.8%
LAKEVIEW - Down 43.2%
NORTH CENTER - Down 47.2%
Month By Price Point
Under $500,000 - Down 34.5%
$500,000 to $1,000,000 - Down 42.9%
$1,000,000 to $2,000,000 - Up 1.5%
Over $2,000,000 - Down 45.7%
FEBRUARY MONTHS OF SUPPLY OF INVENTORY
Year To Date - Down 62.0% to 2.2 MSI
Month 2022 vs 2021 - Down 59.6 to 2.3 MSI
Month By Price Point
Under $500,000 - Down 60.8% to 2.0 MSI
$500,000 to $1,000,000 - Down 62.0% to 1.9 MSI
$1,000,000 to $2,000,000 - Down 63.4% to 3.0 MSI
Over $2,000,000 - Down 66.3% to 5.8 MSI
Month By Neighborhood
NEAR NORTH - Down 63.0% to 4.4 MSI
LINCOLN PARK - Down 58.1% to 1.8 MSI
LAKEVIEW - Down 54.1% to 1.7 MSI
NORTH CENTER - Down 51.9% to 1.3 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.
FEBRUARY MEDIAN PRICING
Year To Date - Up 7.7%
Month 2022 vs 2021 - Up 9.8%
Month By Neighborhood
NEAR NORTH - Up 30.9%
LINCOLN PARK - Up 7.0%
LAKEVIEW - Up 3.7%
NORTH CENTER - Up 1.1%
Month By Price Point
Under $500,000 - Down 5.2%
$500,000 to $1,000,000 - Up 1.4%
$1,000,000 to $2,000,000 - Up 12.7%
Over $2,000,000 - Up 9.4%
FEBRUARY DAYS ON THE MARKET
Year To Date - Down 11.5% to 108 Days
Month 2022 vs 2021 - Down 17.9% to 110 Days
Month By Neighborhood
NEAR NORTH - Up 4.8% to 175 days
LINCOLN PARK - Down 12.6% to 104 days
LAKEVIEW - Down 6.3% to 89 days
NORTH CENTER - Down 52.9% to 72 Days
Month By Price Point :
Under $500,000 - Down 16.4% to 97 Days
$500,000 to $1,000,000 - Down 15.2% to 106 Days
$1,000,000 to $2,000,000 - Down 17.6% to 140 Days
Over $2,000,000 - Up 53% 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.