JUNE 2023 MARKET ANALYSIS FOR CHICAGO'S NORTH SIDE
May 2023 was the 15th consecutive month of year-over-year home sales declines in Lincoln Park, Near North Side, Lakeview and North Center.
Historically low inventory levels and strong buyer demand continue to make this market as frustrating as it is promising.
While we have experienced more than a year of home sales declines, May represented the second consecutive month of median home price increases.
Home prices on the North Side have been one of the most interesting and perplexing aspects of the current market.
Traditionally, low inventory markets can inflate home prices to dangerous levels for home buyers. Despite many multiple offers and low market times, Chicago home prices have remained fairly stable in comparison to the sububrbs and other parts of the country. In fact, April’s 0.3% median home price increase was the first in six months. May home prices rose 8.5% over last year and prices are now even with year to date numbers from 2022.
Lincoln Park prices rose 11.2% and North Center rose 24.5% compared to last year. Both of these neighborhoods have experienced slow but consistant price growth since 2020 and COVID. Home prices in Lakeview have been more flat during the same time period. The Near North Side has had a more difficult time with pricing. Significantly higher inventory levels on The Near North Side have given buyers more of a choice of homes keeping prices competitive.
Two months does not necessarily indicate a trend and sellers should note that the current pricing data is not a license to overprice your home. Pricing your home for sale should include comparable properties along with price per square foot and appreciation analysis from your specific neighborhood. The past few months have shown that many buyers will compete in multiple offers, but will not get involved in over priced bidding wars. If a North Side home is not getting offers in this market, it is probably overpriced.
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 2023 vs 2022 - Down 35.3%
Month 2023 vs 2019 - Down 12.3%
Month 2023 vs 2022 - Dow 35.0%
Month By Neighborhood
NEAR NORTH - Down 23.6%
LINCOLN PARK - Down 43.9%
LAKEVIEW - Down 40.9%
NORTH CENTER - Down 37.9%
Month By Price Point
Under $500,000 - Down 33.4%
$500,000 to $1,000,000 - Down 36.5%
$1,000,000 to $2,000,000 - Down 37.5%
Over $2,000,000 - Down 32.2%
MAY HOMES UNDER CONTRACT
Year To Date 2023 vs 2022- Down 32.7%
Month 2023 vs 2019 - Down 15.7%
Month 2023 vs 2022 - Down 24.7%
Month By Neighborhood
NEAR NORTH - Down 15.1%
LINCOLN PARK - Down 32.8%
LAKEVIEW - Down 24.8%
NORTH CENTER - Down 41.7%
Month By Price Point
Under $500,000 - Down 20.1%
$500,000 to $1,000,000 - Down 33.2%
$1,000,000 to $2,000,000 - Down 19.6%
Over $2,000,000 - Down 28.9%
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 2023 vs 2022- Down 22.0%
Month 2023 vs 2019 - Down 43.8%
Month 2023 vs 2022 - Down 22.7%
Month By Neighborhood
NEAR NORTH - Down 18.0%
LINCOLN PARK - Down 28.9%
LAKEVIEW - Down 35.9%
NORTH CENTER - Down 12.8%
Month By Price Point
Under $500,000 - Down 43.8%
$500,000 to $1,000,000 - Down 15.8%
$1,000,000 to $2,000,000 - Down 1.5%
Over $2,000,000 - Down 13.6%
MAY MONTHS OF SUPPLY OF INVENTORY
Year To Date 2023 vs 2022 - Up 7.6% at 2.8 MSI
Month 2023 vs 2019 - Down 42.1% to 5.7 MSI
Month 2023 vs 2022 - Up 13.8 % at 3.3 MSI
Month By Price Point
Under $500,000 - Down 24.0% to 1.9 MSI
$500,000 to $1,000,000 - Up 22.2% to 3.3 MSI
$1,000,000 to $2,000,000 - Up 57.5 to 6.3 MSI
Over $2,000,000 - Up 73.9% to 12.0 MSI
Month By Neighborhood
NEAR NORTH - Up 13.2% to 6.0 MSI
LINCOLN PARK - Up 13.6% at 2.5 MSI
LAKEVIEW - No Change at 1.6 MSI
NORTH CENTER - Up 25.0% 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.
MAY MEDIAN PRICING
Year To Date 2023 vs 2022- No Change
Month 2023 vs 2019- Up 10.5%
Month 2023 vs 2022 - Up 8.5%
Month By Neighborhood
NEAR NORTH - Down 6.0%
LINCOLN PARK - Up 11.2%
LAKEVIEW - Down 0.4%
NORTH CENTER - Up 24.5%
Month By Price Point
Under $500,000 - Up 1.3%
$500,000 to $1,000,000 - Up 1.5%
$1,000,000 to $2,000,000 - Down 0.3%
Over $2,000,000 - Down 1.4%
MAY DAYS ON THE MARKET
Year To Date 2023 vs 2022- Up 6.4% to 82 Days
Year To Date 2023 vs 2019- Down 31.8% to 88 Days
Month 2023 vs 2022 - Up 7.1% to 60 Days
Month By Neighborhood
NEAR NORTH - Up 16.7% to 112 days
LINCOLN PARK - Down 18.2% to 45 days
LAKEVIEW - Up 7.5% to 43 days
NORTH CENTER - Up 25.5% to 40 Days
Month By Price Point :
Under $500,000 - Down 9.8% to 55 Days
$500,000 to $1,000,000 Up 17.0% to 55 Days
$1,000,000 to $2,000,000 - Up 71.9% to 98 Days
Over $2,000,000 - Up 50.9% to 163 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, we would welcome the opportunity to have a conversation about your real estate needs, goals and expectations.