JULY 2023 MARKET ANALYSIS FOR CHICAGO'S NORTH SIDE
June 2023 was the 16th consecutive month of year-over-year home sales declines in Lincoln Park, Near North Side, Lakeview and North Center. Strong buyer demand has not been able to compensate for historically low inventory levels.
There are, however, four positive takeaways from the June neighborhood results below.
1 - UNITS UNDER CONTRACT - Homes that went under contract in any given month, have experienced the same double-digit decreases as home sales. June homes that went under contract showed some improvement. With the exception of Lincoln Park which dropped 33.4% vs last year, Near North only dropped 1.2% and Lakeview dropped only 6.9%. North Center increased by 4.4%.
2 - HOME PRICES - June represented the third consecutive month of median home price increases. 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 suburbs and other parts of the country. June home prices rose 4.9% over last year and prices are now just 0.4% behind Year To Date 2022 median prices.
3 - MSI - Months Of Supply Of Inventory is a calculation that compares home sales to inventory levels. Traditionally, anything below 6.0 MSI is considered a sellers market and anything above is considered a buyers market. 2023 MSI levels have dropped as low as 1.2 MSI in the past months reflecting the critical shortage of homes for sale. MSI levels are slowly starting to rise and have moved from 2.1 in Lakeview to 6.1 on the Near North Side. This does not mean that the inventory shortage is over, but it is moving in a positive direction.
4 - BUYERS - The most promising component in this market is that there is a strong supply of buyers. While there are no statistics to give us true numbers, open house attendance and low market times indicate that buyers are getting more comfortable with higher interest rates.
We still have a long way to go before we begin to see home sales increases; however, there are some positive signs.
Please review the analysis below for your neighborhood and price point to see 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 2023 vs 2022 - Down 33.9%
Month 2023 vs 2022 - Dow 30.9%
Month By Neighborhood
NEAR NORTH - Down 21.2%
LINCOLN PARK - Down 28.2%
LAKEVIEW - Down 40.7%
NORTH CENTER - Down 39.8
Month By Price Point
Under $500,000 - Down 28.1%
$500,000 to $1,000,000 - Down 34.4%
$1,000,000 to $2,000,000 - Down 24.2%
Over $2,000,000 - Down 53.2%
JUNE HOMES UNDER CONTRACT
Year To Date 2023 vs 2022- Down 29.3%
Month 2023 vs 2022 - Down 9.5%
Month By Neighborhood
NEAR NORTH - Down 1.2%
LINCOLN PARK - Down 31.4%
LAKEVIEW - Down 6.3%
NORTH CENTER - Up3.4%
Month By Price Point
Under $500,000 - Down 1.9%
$500,000 to $1,000,000 - Down 12.5%
$1,000,000 to $2,000,000 - Down 35.9%
Over $2,000,000 - Up 26.3%
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.
JUNE HOMES FOR SALE
Year To Date 2023 vs 2022- Down 21.8%
Month 2023 vs 2022 - Down 25.5%
Month By Neighborhood
NEAR NORTH - Down 18.8%
LINCOLN PARK - Down 33.4%
LAKEVIEW - Down 41.6%
NORTH CENTER - Down 14.3%
Month By Price Point
Under $500,000 - Down 44.0%
$500,000 to $1,000,000 - Down 17.5%
$1,000,000 to $2,000,000 - Down 8.2%
Over $2,000,000 - Up 6.0%
JUNE MONTHS OF SUPPLY OF INVENTORY
Year To Date 2023 vs 2022 - Up 7.4% at 2.9 MSI
Month 2023 vs 2022 - Up 6.3 % at 3.4 MSI
Month By Price Point
Under $500,000 - Down 27.1% to 2.1 MSI
$500,000 to $1,000,000 - Up 25.0% to 3.5 MSI
$1,000,000 to $2,000,000 - Up 46.5 to 6.3 MSI
Over $2,000,000 - Up 45.7% to 11.8 MSI
Month By Neighborhood
NEAR NORTH - Up 8.9% to 6.1 MSI
LINCOLN PARK - Up 8.0% to 2.7 MSI
LAKEVIEW - Down 8.7% to 2.1%
NORTH CENTER - Up 22.7% to 2.7 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 2023 vs 2022- Down 0.4%
Month 2023 vs 2022 - Up 4.9%
Month By Neighborhood
NEAR NORTH - Down 8.5%
LINCOLN PARK - Down 3.0%
LAKEVIEW - Up 6.7%
NORTH CENTER - Up 18.7%
Month By Price Point
Under $500,000 - Up 2.6%
$500,000 to $1,000,000 - Up 1.6%
$1,000,000 to $2,000,000 - Down 1.0%
Over $2,000,000 - Down 1.0%
JUNE DAYS ON THE MARKET
Year To Date 2023 vs 2022- Up 5.6% to 75 Days
Month 2023 vs 2022 - Down 0.2% to 51 Days
Month By Neighborhood
NEAR NORTH - Down 14.4% to 83 days
LINCOLN PARK - Up 25.0% to 55 days
LAKEVIEW - No Change at 37 days
NORTH CENTER - Up 27.3% to 28 Days
Month By Price Point :
Under $500,000 - Down 27.7% to 39 Days
$500,000 to $1,000,000 Up 20.5% to 93 Days
$1,000,000 to $2,000,000 - Up 2.2% to 98 Days
Over $2,000,000 - Up 209% to 102 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.