Every city has its own unique real estate market, and Chicago is no different.
We took a look at the last few months of data and found some pretty interesting changes going on in the Windy City – even some that buck national trends. From a surplus of inventory to a penchant for expensive areas and detached homes, Chicago’s buyers are paving their own way in today’s housing market.
New listings are outpacing sales by a big margin
We hear a lot about housing inventory being low, but it seems that’s far from true in Chicago. According to 2017’s data, only about half of the city’s listed properties sold last year. Out of a whopping 61,245 listings, a mere 33,001 sold – just over 53 percent.
And it seems that trend is likely to continue, too. Over the last five years, the number of sales has grown just 5 percent. New listings? Those jumped 22 percent.
The trend is a curious one, especially as much of America faces a severe dearth of homes on the market. Continuing population loss in the city could certainly play a role. Out of the nation’s biggest cities, Chicago experienced the greatest drop in population in 2017, losing about 20,000 residents over the course of the year. It marked the second consecutive year the city netted a loss.
There’s no shortage of detached properties
If you’re on the market for a detached property, you’re definitely in luck; Chicago appears to have them in spades.
Over the past five years, detached property listings have jumped a whopping 25 percent. Demand isn’t keeping up though; sales on detached properties notched up a mere 4 percent for the same period. And in 2017? They rose only 2 percent.
Meanwhile, new listings on attached/condo and multi-unit properties are keeping on point with demand. It begs the question: with all this inventory available, could prices on detached properties soon be on the downturn? Only time will tell.
The best-selling neighborhoods are also the most expensive
Chicago’s most popular neighborhoods certainly aren’t that way for their bargain-basement prices. In fact, many of the city’s top spots are also its costliest.
Take Near North Side, for example. The community claimed the title for most properties sold, but its average price is in the budget for very few. For 2017, the median sales price in the neighborhood was a shocking $1.075 million. This number’s likely influenced by a handful of detached properties in the area, which tend to go for around $1.9 million each. The average condo in the area is just $405,000.
Lincoln Park is another similar region, taking a top-five ranking for most sales and also claiming an average median sales price of $999,000. Detached homes in the area run for a cool $1.58 million, and 200 of those were sold there last year. The neighborhood also has the city’s most expensive condos, averaging about $490K each.
A little pro tip? If you’re interested in either of these communities but don’t have pockets deep enough, you may want to lean toward Near North Side. The average property sold for 31 percent under its listing price last year, so there may be a little wiggle room when it comes to price.