JANUARY 2025 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.
DECEMBER HOME SALES
Year To Date 2024 vs 2023 - Up 2.6%
Month 2024 vs 2023 -Up 6.3%
Month By Neighborhood
NEAR NORTH - Up 11.5%
LINCOLN PARK - Up 21.0%
LAKEVIEW - Up 2.0%
NORTH CENTER - Down 30.6%
Month By Price Point
Under $500,0 - Down 2.2%
$500,000 to $1,000,000 - Up 18.9%
$1,000,000 to $2,000,000 - Up 2.2%
Over $2,000,000 - up 20.0%
DECEMBER HOMES UNDER CONTRACT
Year To Date 2024 vs 2023 - Up 1.9%
Month 2024 vs 2023 - Down 2.6%
Month By Neighborhood
NEAR NORTH - Up 5.6%
LINCOLN PARK -Down 20.8%
LAKEVIEW - Down 1.4%
NORTH CENTER - Down 12.9%
Month By Price Point
Under $500,000 - Down 10.6%
$500,000 to $1,000,000 - Down 7.2%
$1,000,000 to $2,000,000 - Up 20.7 %
Over $2,000,000 - Up 63.6%
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.
DECEMBER HOMES FOR SALE
Year To Date 2024 vs 2023 - Down 13.5%
Month 2024 vs 2023 - Down 13.9%
Month By Neighborhood
NEAR NORTH - Down 22.0%
LINCOLN PARK - Down 41.1%
LAKEVIEW - Down 4.1%
NORTH CENTER - Down 41.0%
Month By Price Point
Under $500,000 - Down 18.3%
$500,000 to $1,000,000 - Down 31.4%
$1,000,000 to $2,000,000 - Down 30.5%
Over $2,000,000 - Down 16.0%
DECEMBER MONTHS OF SUPPLY OF INVENTORY
Year To Date 2024 vs 2023 - Down 15.6% to 2.7 MSI
Month 2024 vs 2023 - Down 28.0% to 1.8 MSI
Month By Price Point
Under $500,000 - Down 11.1% to 1.6 MSI
$500,000 to $1,000,000 - Down 39.1% to 1.4 MSI
$1,000,000 to $2,000,000 - Down 35.1% to 2.4 MSI
Over $2,000,000 - Down 26.9 % to 5.7 MSI
Month By Neighborhood
NEAR NORTH - Down 28.3% to 3.3 MSI
LINCOLN PARK - Down 45.4% to 1.2 MSI
LAKEVIEW - Up 7.7% to 1.4 MSI
NORTH CENTER - Down 33.3% at 1.2 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.
DECEMBER MEDIAN PRICING
Year To Date 2024 vs 2023 - Up 6.9%
Month 2024 vs 2023 - Up 9.0 %
Month By Neighborhood
NEAR NORTH - Up 8.9%
LINCOLN PARK - Up 10.6%
LAKEVIEW - Up 15.0%
NORTH CENTER - Up 2.5%
Month By Price Point
Under $500,000 - Up 8.5%
$500,000 to $1,000,000 - Up 1.2%
$1,000,000 to $2,000,000 - Down 2.6%
Over $2,000,000 - Down 4.0%
DECEMBER DAYS ON THE MARKET
Year To Date 2024 vs 2023- Down 5.9% to 63 Days
Month 2024 vs 2023 - Down 7.8% to 70 Days
Month By Neighborhood
NEAR NORTH -Down 2.6% to 112 Days
LINCOLN PARK - Up 30.8% to 85 days
LAKEVIEW - Down 21.8% to 43 days
NORTH CENTER - Down 40.6% to 41 Days
Month By Price Point :
Under $500,000 - Down 16.7% to 50 Days
$500,000 to $1,000,000 Up 10.7% to 82 Days
$1,000,000 to $2,000,000 -Down 47.8% to 71 Days
Over $2,000,000 - Up 27.6% to 134 Days
DECEMBER SUMMARY
JANUARY MARKET INDICATORS
2024 North Side real estate ended on a positive note, with sales and median price increases for the third consecutive month.
While inventory levels traditionally drop in December, North Side inventory levels are now at historic lows and will be a key factor in determining the market direction in 2025.
Many in the industry are predicting that the new year will be similar to 2004 with sales and price increases and stable interest rates between 6.5% and 7%; however there are so many variables at the national, state and local levels, that it is impossible to predict with certainty. One thing that is certain is that the market needs a major influx of inventory, but many home owners are still reluctant to let go of their current 3+% interest loans on their current homes.
Home Sales
Home sales increased 2.6% in 2024 over 2023.
In December, 2024 home sales rose 6.3 % vs 2023.
Three of the four neighborhoods reported increases with only North Center dropping 30.6% vs 2023.
Homes priced over $500,000 reported increased sales compared to last year. Homes priced under $500,000 reported declines of 2.2%.
Units Under Contract
Homes that went under contract in December 2024 dropped 2.6% vs 2023.
Three of the neighborhoods had decreases with North Center reporting the only increase at 5.6%.
Homes priced under $1,000,000 reported increases while luxury homes over $1,000,000 decreased.
It should be noted, that the homes that went under contract in December will probably close in January giving us an indicator of next months home sales.
Homes For Sale
Inventory levels decreased 15.6% in 2024 over 2023.
In December, 2024 inventories decreased 23.6% vs 2023.
All four neighborhoods reported double digit decreases in inventory from 22.0% in Near North to 41.2% in Lincoln Park.
All four price points reported inventory decreases in December from 16.0% to 31.4%.
In December, the combined months of supply of inventory dropped 28.0% and is now at 1.8 MSI.
The dividing line between a buyers market and a sellers market is usually considered to be 6.0 MSI.
Near North is at 3.3 MSI, while the other three neighborhoods are under 1.5MSI.
Without an influx of new homes for sale it will be difficult to sustain monthly increases in home sales.
Median Home Prices
Median home prices increased 6.9% in 2024 over 2023.
In December, 2024 median home prices rose 9.0 % vs 2023.
All four neighborhoods reported increases from 2.5% in North Center to 15.0% in Lakeview
Homes priced under $1,000,000 reported increased prices compared to last year while luxury homes priced over $1,000,000 had decreases.
With record low inventories, home prices are expected to spike; however, unlike the suburbs and other large cities across the country, Chicago prices have remained relatively low for the past few years. If the market continues to improve, we will see multiple offers and rising home prices until inventory levels can begin to catch up to demand.
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.