According to the latest MLS data, home prices in Chicago this July jumped 1.7 percent year-over-year, now at a median $305,000. Condos in Chicago faced a larger annual increase of 2.4 percent for a new median price of $325,000.
While home prices climbed over the last year, the market was actually more affordable for buyers in July compared to earlier this summer. Per Z Chicago’s last monthly real estate market report, the median price for June was $312,500, since updated to $315,000. For condos, June’s median price was $325,000 and has since been updated to $327,000. Based on these new figures, Chicago homes and condos sold this July were $10,000 and $2,000 less expensive, respectively, than they were just one month earlier.
And, according to the latest monthly market update from Illinois Realtors, for-sale inventory is down 5.7 percent from last year to 9,276 homes for sale in Chicago. Despite dwindling inventory, slower median market time is giving hope to home buyers overwhelmed by Chicago’s highly competitive landscape. Median time on the market is back up to 35 days, compared to 33 days in June and 34 days last July. Still, the number of homes sold in Chicago this July (2,728) marks a 1.1 percent annual increase. In June, sales in the city were down 8.7 percent from the year prior.
Both overall home prices and condo prices are up in the West Loop, South Loop, River North, Gold Coast, Old Town, Lincoln Park, and Avondale. Meanwhile, both overall prices and condo prices specifically dipped marginally in the Loop compared to July 2017.
In Logan Square, overall home prices dropped but condo prices inched higher. And, although general home prices improved, Lakeview condo prices dropped slightly since last year.
The change in closed sales, on the other hand, was more sporadic depending on submarket. In the West Loop, for instance, the number of closed sales saw drastic improvement of 54.1 percent – 85.7 percent for West Loop condos alone. Other neighborhoods with more closings compared to last year include South Loop, Lakeview, and Avondale. All other neighborhoods saw mild to moderate dips in the number of houses, townhouses, and condos that sold during the month compared to one year ago.
Since inventory is a big issue, it’s promising to see how many neighborhoods saw an increase in new listings this July. New listings for all homes and condos in the West Loop increased by 25.8 percent and 28.2 percent, respectively. Gold Coast, Old Town, Lincoln Park, Lakeview, Logan Square, and Avondale also saw increases in new listings for both categories. In Wicker Park/West Town, overall new listings dropped while condo new listings boosted. In the Loop, South Loop and River North, new listings for both homes overall and condos plunged.
Anecdotal reports of a market slowdown are everywhere, and the latest data appears to support those claims. While home prices aren’t dropping by drastic amounts and the number of closings has remained relatively stable for the most part, homes for sale in Chicago are beginning to sit on the market longer. Whether the lack of hustle is due to rising interest rates, lack of options or discouraged buyers, the median days on the market for all residential properties rose in every major Chicago neighborhood, particularly Logan Square and Avondale. For Logan Square, the 59 condos that went under contract last month spent 212.5 percent more time on the market this July compared to last. In Avondale, days on the market for overall homes jumped 53.3 percent and a staggering 187.5 percent for just condos. Only condos in Lincoln Park (down 9.1 percent) and condos in Wicker Park (down 30.8 percent) sold faster this July compared to last.
