FEBRUARY 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.
JANUARY HOME SALES
Year To Date 2025 vs 2024 - Up 17.4%
Month 2025 vs 2024 -Up 17.4%
Month By Neighborhood
NEAR NORTH - Up 16.4%
LINCOLN PARK - Up 19.6%
LAKEVIEW - Up 15.7%
NORTH CENTER - Up 23.1%
Month By Price Point
Under $500,0 - Up 1.3%
$500,000 to $1,000,000 - Up 45.6%
$1,000,000 to $2,000,000 - Up 8.5%
Over $2,000,000 - up 53.8%
JANUARY HOMES UNDER CONTRACT
Year To Date 2025 vs 2024 - Down 5.9%
Month 2025 vs 2024 - Down 5.9%
Month By Neighborhood
NEAR NORTH - Up 6.8%
LINCOLN PARK -Down 30.1%
LAKEVIEW - Down 9.3%
NORTH CENTER - No Change
Month By Price Point
Under $500,000 - Down 6.5%
$500,000 to $1,000,000 - Down 13.2%
$1,000,000 to $2,000,000 - Up 16.3 %
Over $2,000,000 - Up 5.8%
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 2025 vs 2024 - Down 21.7%
Month 2025 vs 2024 - Down 21.7%
Month By Neighborhood
NEAR NORTH - Down 20.5%
LINCOLN PARK - Down 33.3%
LAKEVIEW - Down 3.8%
NORTH CENTER - Down 47.0%
Month By Price Point
Under $500,000 - Down 14.9%
$500,000 to $1,000,000 - Down 30.5%
$1,000,000 to $2,000,000 - Down 29.0%
Over $2,000,000 - Down 16.7%
JANUARY MONTHS OF SUPPLY OF INVENTORY
Year To Date 2025 vs 2024 - Down 29.6% to 1.9 MSI
Month 2025 vs 2024 - Down 29.6% to 1.9 MSI
Month By Price Point
Under $500,000 - Down 20.0% to 1.6 MSI
$500,000 to $1,000,000 - Down 44.0% to 1.4 MSI
$1,000,000 to $2,000,000 - Down 34.1% to 2.7 MSI
Over $2,000,000 - Down 23.2 % to 6.3 MSI
Month By Neighborhood
NEAR NORTH - Down 28.6% to 3.5 MSI
LINCOLN PARK - Down 35.0% to 1.3 MSI
LAKEVIEW - No Change at 1.4 MSI
NORTH CENTER - Down 43.5% 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 2025 vs 2024 - Up 9.6%
Month 2025 vs 2024 - Up 9.6 %
Month By Neighborhood
NEAR NORTH - Up 3.3%
LINCOLN PARK - Down 4.5%
LAKEVIEW - Up 20.1%
NORTH CENTER - Up 22.6%
Month By Price Point
Under $500,000 - Down 2.6%
$500,000 to $1,000,000 - Down 0.1%
$1,000,000 to $2,000,000 - Down 3.0%
Over $2,000,000 - Down 8.1%
JANUARY DAYS ON THE MARKET
Year To Date 2025 vs 2024- Down 26.3% to 70 Days
Month 2025 vs 2024 - Down 26.3% to 70 Days
Month By Neighborhood
NEAR NORTH -Down 27.9% to 101 Days
LINCOLN PARK - Down 29.9% to 47 days
LAKEVIEW - Down 43.9% to 46 days
NORTH CENTER - Down 7.7% to 84 Days
Month By Price Point :
Under $500,000 - Down 17.6% to 80 Days
$500,000 to $1,000,000 Down 31.9% to 82 Days
$1,000,000 to $2,000,000 -Down 37.2% to 91 Days
Over $2,000,000 - Down 47.3% to 98 Days
JANUARY SUMMARY
FEBRUARY MARKET INDICATORS
2025 North Side real estate began on a positive note, with sales and median price increases for the fourth consecutive month; however, there should be an asterisk beside these numbers.
The market is very active as it was last year at this time and buyers are out looking for new homes. Last weeekend we had an open house on a new listing and had over 40 attendees which resulted in multiple offers.
The problem that buyers face is that 2025 inventory levels continue to drop and and are currently 21.7% lower than 2024 (which was a record year for low inventories).
January 2025 new listings were down 13.4% vs 2024. Lincoln Park new listings were down 28.5% and North Center new listings were down 35.5%.
While low inventories produce multiple offers and higher prices for sellers we are now at historic lows. This will eventually result in home sales decreases if more homes do not hit the market.
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. Political & economic uncertainty along with perceived / actual rising crime rates are also keeping sellers on the sidelines.
Home Sales
Home sales increased 17.4% in January 2025 vs 2024.
All four of our neighborhoods reported increases from 15.7% to 23.1%.
All four price points reported increases as well from 1.3% for homes priced under $500,000 to 53.8% for homes priced over $2,000,000.
Units Under Contract
Homes that went under contract in January 2025 dropped 5.9% vs 2024.
Near North reported and increase, while Lincoln Park and Lakeview decreased. There was no change in North Center.
Homes priced under $1,000,000 reported decreases while luxury homes over $1,000,000 increased.
It should be noted, that the homes that went under contract in January will probably close in February giving us an indicator of next months home sales.
Homes For Sale
January 2025 inventories decreased 21.7% vs 2024.
All four neighborhoods reported decreases in inventory from 3.8% in Lakeview to 47.0% in North Center.
All four price points reported inventory decreases in December from 14.9% to 30.5%.
In January, the combined months of supply of inventory dropped 29.6% and is now at 1.9 MSI.
The dividing line between a buyers market and a sellers market is usually considered to be 6.0 MSI.
Near North is at 3.5 MSI, while the other three neighborhoods are under 1.4MSI.
Without an influx of new homes for sale it will be difficult to sustain monthly increases in home sales.
Median Home Prices
January 2025 median home prices rose 9.6 % vs 2024.
Three of the four neighborhoods reported increases, with Lincoln Park posting the only decrease at 4.5%.
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.
Going Forward
The current low inventory, multiple offer situation can be difficult and complicated. Buyers often have to make offers after seeing the home once, without a second showing. Be sure that your broker has experience in navigating this market.
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.