FEBRUARY 2024 MARKET ANALYSIS FOR CHICAGO'S NORTH SIDE
Our monthly market analysis below details six real estate comparatives for the Near North Side, Lincoln Park, Lakeview and North Center, in addition to our comprehensive monthly summary.
JANUARY HOME SALES
Year To Date 2024 vs 2023 - Up 9.5%
Month 2024 vs 2023 - Up 9.5%
Month By Neighborhood
NEAR NORTH - Up 13.7%
LINCOLN PARK - Up 5.0%
LAKEVIEW - Up 1.7%
NORTH CENTER - Up 15.8
Month By Price Point
Under $500,000 - Up 7.5%
$500,000 to $1,000,000 - Down 6.5%
$1,000,000 to $2,000,000 - Up 77.0%
Over $2,000,000 - No Change
JANUARY HOMES UNDER CONTRACT
Year To Date 2024 vs 2023 - Down 23.6%
Month 2024 vs 2023 - Down 23.6%
Month By Neighborhood
NEAR NORTH - Down 9.6%
LINCOLN PARK - Down 28.9%
LAKEVIEW - Down 30.5%
NORTH CENTER - Down 46.9%
Month By Price Point
Under $500,000 - Down 24.5%
$500,000 to $1,000,000 - Down 15.5%
$1,000,000 to $2,000,000 - Dow 32.7%
Over $2,000,000 - Down 45.0%
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.
JANUARY HOMES FOR SALE
Year To Date 2024 vs 2023 - Down 18.4%
Month 2024 vs 2023 - Down 18.4%
Month By Neighborhood
NEAR NORTH - Down 9.5%
LINCOLN PARK - Down 31.3%
LAKEVIEW - Down 45.1%
NORTH CENTER - Down 29.1%
Month By Price Point
Under $500,000 - Down 14.8%
$500,000 to $1,000,000 - Down 27.7%
$1,000,000 to $2,000,000 - Down 22.8%
Over $2,000,000 - Down 2.4%
JANUARY MONTHS OF SUPPLY OF INVENTORY
Year To Date 2024 vs 2023 - Down 17.4% to 1.9 MSI
Month 2024 vs 2023 - Down 17.4 to 1.9 MSI
Month By Price Point
Under $500,000 - No Change at 1.6 MSI
$500,000 to $1,000,000 - Down 8.7% to 2.1 MSI
$1,000,000 to $2,000,000 - Down 15.8% to 3.2 MSI
Over $2,000,000 - Up 1.4% to 7.1 MSI
Month By Neighborhood
NEAR NORTH - Down 2.1% to 4.6 MSI
LINCOLN PARK - Down 6.3% to 1.5 MSI
LAKEVIEW - Down 28.6 to 1.0 MSI
NORTH CENTER - No Change at 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.
JANUARY MEDIAN PRICING
Year To Date 2024 vs 2023 - Up 7.8%
Month 2024 vs 2023 - Up 7.8%
Month By Neighborhood
NEAR NORTH - Up 12.0%%
LINCOLN PARK - Up 24.8%
LAKEVIEW - Down 9.2%
NORTH CENTER - Up 4.3%
Month By Price Point
Under $500,000 - Up 1.2%
$500,000 to $1,000,000 - Up 7.7%
$1,000,000 to $2,000,000 - Up 1.2%
Over $2,000,000 - Down 2.7%
JANUARY DAYS ON THE MARKET
Year To Date 2024 vs 2023- Down 6.8% to 82 Days
Month 2024 vs 2023 - Down 6.8% to 82 Days
Month By Neighborhood
NEAR NORTH - Up 10.2% to 140 days
LINCOLN PARK - Down 20.3% to 63 days
LAKEVIEW - Down 27.6 to 63 days
NORTH CENTER - Up 6.9% to 62 Days
Month By Price Point :
Under $500,000 - Down 21.2% to 67 Days
$500,000 to $1,000,000 Down 13.6% to 70 Days
$1,000,000 to $2,000,000 - Down 14.9% to 125 Days
Over $2,000,000 - Up 32.3% to 221 Days
FEBRUARY SUMMARY
The positive economic news of the past two months including the stabilizing and lowering of interest rates has may of us optimistic about real estate in 2024, for Lincoln Park, Near North Side, Lakeview and North Center. The influx of showing requests and growing attendance at open houses is a sign that the market is beginning to turn. We still have a way to go before we can expect a full rebound.
FEBRUARY STEPS FORWARD
HOMES SALES - Homes sales rose for the second consecutive month by 9.5% in January 2024. For the first time in two years, all four neighborhoods reported increases from 1.7% to 15.8%. The January increases were driven primarily by homes priced under $500,000 and homes priced from $1,000,000 to $2,000,000. There was no change in homes priced over $2,000,000 and a 6.5% decrease for homes priced between $500,000 and $1,000,000.
HOME PRICES - January 2024 home prices rose by 7.8% over 2023. Three of the four neighborhoods reported increases with only Lakeview reporting a 9.2% decrease. Homes priced over $500,000 showed increases, while prices on homes priced under $500,000 fell 2.7%. Traditionally, low inventory levels significantly drive up prices, but this has not been the case on Chicago’s North Side. City numbers are lower than the Chicago suburbs and many cities across the country. As we head into the spring real estate season, sellers should be careful not to fall victim to perceived market momentum. Homes need to be priced competitively to avoid extended market times and lower offers.
FEBRUARY STEPS BACKWARD
INVENTORY - With interest rates dropping, historically low inventory levels are now the main obstacle to a real estate rebound. Inventory levels dropped 18.4% in January 2024. Lincoln Park, Lakeview and North Center have between 1.0 and 1.5 months of supply of inventory which is now at a critical level with sales rising. These decreases were consistent in all four neighborhoods and price points. We will need a significant infusion of new inventory in order to sustain a long term real estate turn around.
UNITS UNDER CONTRACT - Homes generally take between 30 and 45 days to close after going under contract. 362 homes went under contract in January 2024 which was a 23.6% decrease vs 2023. Many of these homes will close in February and this indicates that there could be a decrease in home sales in February. This is a direct result of drastically low inventory levels.
GOING FORWARD
It is still too early to predict the 2024 market, but unlike 2023, there are positive indicators. Buyers and sellers need to stay updated on a regular basis for market changes in their specific neighborhood and property types. This is going to be a very interesting year in real estate.
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.