The Chicago condo market which has been been lagging behind the Chicago single family home market and the condo markets in almost every other major U.S. city is finally starting to show some life.Year over year the average price was up an impressive 9.5% and market time dropped almost 5%.
The single family home market seems to be slowing slightly. While prices were up 3.5%, the market time was up and closed sales dropped over 10%.
An improving job market and economy has pushed mortgage rates up some. Rates seem to have settled in higher than they were a few months ago but historically they are still low.
You probably think that early summer is the best time to buy a home because the supply is at its highest. You would be correct about the number of options you will have to choose from. But competition from other buyers will be at its peak. In hot neighborhoods like the West Loop a new place on the market can easily have 10 showings in its first few days on the market and will often receive multiple offers within days. Buyers barely have time to think it over if they find a place they love. Worst case scenario you end up in a bidding war.
Over the winter there will not be many buyers looking. They are busy with the holidays and if they have kids they do not want to move in the middle of a school year. That is what makes winter the best time to bargain hunt. This January there were 3823 attached homes for sale in Chicago and that had grown to 4673 by June. That is only 22% less homes to choose from in January. You may think the only thing on the market in January is condos that have been sitting on the market forever and that nothing new will come up. That is not the case. Over 1900 new places were listed this January. Less than in June but still a healthy amount. Sellers are also going to be more anxious to sell. There are less buyers, the market is slow and if they were not in a hurry to sell they would have waited for the spring to list their place.
Tromping around in the cold Chicago weather may not be appealing but if you are willing to do it you may just find your dream home at a bargain price.
The 680 N Lake Shore Drive building has seen an uptick in sales in 2016. There have been 16 units sold or pending so far this year while 15 places sold in all of 2015. The estimated average price per sq. ft. based on MLS numbers has gone from $233 per sq. ft. in 2015 to $266 in 2016. The average asking price is currently an optimistic $315.
The near north side, unfortunately they lump the Gold Coast, Streeterville and River North all into one neighborhood, has seen the median sale price of condos go up 4.1% year to date. While sales have declined .4% and market time has gone up from 85 days to 91. The inventory of homes for sale has dropped 13.6% If mortgage rates remain this low and the economy does not stall we should see some upward pressure on prices.
Sold Units in 2016
These number are based on the data available on the MLS system. Some foreclosures and other sales may not be represented.
Please feel free to contact us if you would like a free price evaluation for your home, would like a price analysis for your building or if you just have a real estate question.
The June 2016 Chicago housing numbers are out and there are a few surprises. The year over year number of attached homes for sale has dropped 18.4%. Interest rates also continue to be very low. The lack of supply and low interest rates have not translated into higher prices. The number of homes sold increased a bit over last year but there has been a slow down from the busy market of earlier this year.
Detached single family homes however have seen a nice price increase of around 10%. Market time has also dropped 8 days. Demand for single family homes seems to be picking up.
The national averages for mortgage rates have remained very low over the last week. While we do not see anything on the horizon that would cause rates to go up significantly we are not sure they can stay this low for long.