MARCH 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.
FEBRUARY HOME SALES
Year To Date 2024 vs 2023 - Up 6.8%
Month 2024 vs 2023 - Up 4,8%
Month By Neighborhood
NEAR NORTH - Up 15.2%
LINCOLN PARK - No Change
LAKEVIEW - Up 6.0%
NORTH CENTER - Down 36.4%
Month By Price Point
Under $500,000 - Down 1.9%
$500,000 to $1,000,000 - Up 18.4%
$1,000,000 to $2,000,000 - Up 5.7%
Over $2,000,000 - Up 9.0%
FEBRUARY HOMES UNDER CONTRACT
Year To Date 2024 vs 2023 - Down 8.0%
Month 2024 vs 2023 - Up 0.3%
Month By Neighborhood
NEAR NORTH - Up 25.0%
LINCOLN PARK - Down 13.1%
LAKEVIEW - Down 12.1%
NORTH CENTER - Down 29.0%
Month By Price Point
Under $500,000 - Down 13.0%
$500,000 to $1,000,000 - Down 6.9%
$1,000,000 to $2,000,000 - Down 12.8%
Over $2,000,000 - Down 11.9%
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.
FEBRUARY HOMES FOR SALE
Year To Date 2024 vs 2023 - Down 13.9%
Month 2024 vs 2023 - Down 11.0%
Month By Neighborhood
NEAR NORTH - Down 4.8%
LINCOLN PARK - Down 17.8%
LAKEVIEW - Down 29.3%
NORTH CENTER - Down 5.8%
Month By Price Point
Under $500,000 - Down 6.6%
$500,000 to $1,000,000 - Down 22.2%
$1,000,000 to $2,000,000 - Down 9.6%
Over $2,000,000 - Up 0.8%
FEBRUARY MONTHS OF SUPPLY OF INVENTORY
Year To Date 2024 vs 2023 - No Change at 2.6 MSI
Month 2024 vs 2023 - Up 3.8% to 2.7 MSI
Month By Price Point
Under $500,000 - Up 11.8% to 1.9 MSI
$500,000 to $1,000,000 - Down 7.4% to 2.5 MSI
$1,000,000 to $2,000,000 - Down 2.1% to 4.6 MSI
Over $2,000,000 - Down 1.1% to 8.5 MSI
Month By Neighborhood
NEAR NORTH - No Change at 4.9 MSI
LINCOLN PARK - Up 5.0% to 2.1 MSI
LAKEVIEW - Down 11.8 to 1.5 MSI
NORTH CENTER - Up 27.8 at 2.3 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 2024 vs 2023 - Up 13.9%
Month 2024 vs 2023 - Up 15.6%
Month By Neighborhood
NEAR NORTH - Down 6.8%
LINCOLN PARK - Up 35.0%
LAKEVIEW - Up 18.5%
NORTH CENTER - Up 10.0%
Month By Price Point
Under $500,000 - Up 11.8%
$500,000 to $1,000,000 - Down 7.4%
$1,000,000 to $2,000,000 - Up 2.1%
Over $2,000,000 - Down 1.1%
FEBRUARY DAYS ON THE MARKET
Year To Date 2024 vs 2023- Up 0.8% to 91 Days
Month 2024 vs 2023 - Down 18.0% to 82 Days
Month By Neighborhood
NEAR NORTH - Down 4.8% to 138 days
LINCOLN PARK - Down 12.1% to 80 days
LAKEVIEW - Down 22.6% to 65 days
NORTH CENTER - Down 36.7% to 62 Days
Month By Price Point :
Under $500,000 - Down 40.1% to 64 Days
$500,000 to $1,000,000 Down 9.0% to 90 Days
$1,000,000 to $2,000,000 - Down 5.7% to 98 Days
Over $2,000,000 - Down 26.3% to 168 Days
MARCH SUMMARY
The positive economic news of December & January had many of us optimistic about real estate in 2024, for Lincoln Park, Near North Side, Lakeview and North Center. Subsequent reports from the Fed in February & March indicated that the real estate rebound may be a bit slower than first thought. February 2024 represented the third consecutive monthly increase of home sales over 2023; however, there are few consistent trends and results vary by neighborhood, property type and price point.
Here is a recap of the current market.
INVENTORY - With slowly rising sales, inventory levels are now the main obstacle to a strong real estate rebound. Inventory levels dropped 11.4% in February 2024. Lincoln Park, Lakeview and North Center have between 1.5 and 2.3 months of supply of inventory which are historically low levels. The most dramatic inventory decreases occurred in homes priced between $500,000 and $1,000,000, which dropped 22.2% and homes in Lakeview which dropped 29.3%.
BUYERS - Buyers are out there!! The influx of showing requests and growing attendance at open houses in the past two months is a sign that the market is beginning to turn. With inventory levels at historic lows, sellers are usually in control; however, that is not necessarily the case in this market. Many buyers are looking for homes in “turnkey” condition. Updated kitchens, bathrooms and paint colors are very important, as many buyers do not want to do the updates themselves. Pricing is also very important and must reflect the true value of the home. Most buyers would rather wait for new homes to come on the market, than over pay because of low inventory levels.
HOMES SALES - Homes sales rose for the third consecutive month by 4.8% in February 2024. The results were mixed by neighborhood, as Near North and Lakeview reported increases while Lincoln Park and North Center reported decreases. The January increases were driven primarily by homes priced over $500,000. Sales of homes priced under $500,000 dropped slightly by 1.9%.
HOME PRICES - February 2024 home prices rose by 15.6% over 2023 with Lincoln Park prices rising 35.0%. Three of the four neighborhoods reported increases with only Near North reporting a 6.8% decrease. Homes priced priced between $500,000 - $2,000,000 showed increases, while prices on homes priced under $500,000 and over $2,000,000 dropped. Traditionally, low inventory levels significantly drive up prices, but this has not been the case on Chicago’s North Side. While city numbers are rising, they 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 low offers.
GOING FORWARD - The market is improving but the turn around could be a slow one. As noted above, many of the traditional trends of a real estate rebound do not apply to this current market. Buyers and sellers should do their homework before moving forward.
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.