Monthly real estate market report based on residential real estate activity in the city of Chicago, the downtown area, and neighborhood-specific sales data broken down by all residential and attached single-family (condos/townhouses).
June’s market report was average, given Chicago only entered phase four later in the month and much of the real estate activity outlined in this market report occurred while the city was still under fairly stringent stay at home orders. While closed sales were definitely lower and homes sat on the market longer than normal, we were barely out of quarantine, so once again, things looked pretty good – all things considered.
Let’s first recap what happened since our last full market report went live in May (based on April activity). For reference, the median sales price in May for the city was $312,250, there were 1,694 closed sales, median market time was 37 days, 2,327 homes went under contract and there were 8,055 homes for sale. Sorry for the skipped month.
Also note that we are changing the market report name to match the month that the data reflects instead of the month the data is posted, so June’s market report reflects June’s data despite it being posted in July.
Chicago home sales – June 2020
In June, the median sales price in Chicago reached $327,000 – a 2.5% jump from this time last year. The rolling 12-month median, which averages sales prices from the last 12 months, increased 3.1% year-over-year to $299,000.
Although prices were up since last year, closed sales were still down 27.7%, thanks to COVID. And, homes in Chicago took longer to sell this June compared to last June with a 38-day median market time. Last year, the median market time for the city was just 26 days.
Inventory was also lower, albeit improving compared to the height of the pandemic seen in March and April. There were 8,410 homes for sale in Chicago in June – down 17.7% compared to last year. One upside of this is that low inventory typically helps keep prices more stable.
June did have an extremely active month in homes under contract, with a 17.2% increase compared to a year ago. That comes to no surprise for Realtors who were out on the field earlier this summer and experienced those quick contracts and multiple offers firsthand.
The sudden surge of buyers is thanks, in part, to low mortgage rates. Plus, more people are focused on the importance of home and are feeling the need for extra space – offices and outdoor spaces are more important than ever. Assuming those contracts turn to closings, we should see a higher than the usual number of closed sales for July and August.
Downtown Chicago home sales – June 2020
Now let’s focus on downtown since we all know the citywide data paints a pretty broad picture and the median sales price referenced above is a pipe dream for most people searching anywhere close to the urban core.
The median sales price in the neighborhoods downtown reached $445,000 in June, up 3.5% year-over-year. The rolling 12-month average, up 2.8%, reached $437,000.
Closed sales downtown fell 32.6% from last June, unsurprisingly, since most of the homes that closed in June went under contract in April and May. Similarly, the median market time reached 43 days, up from 29 days a year ago.
In terms of inventory, there were 9.3% fewer homes for sale downtown compared to June 2019.
Much like the city as a whole, homes under contract downtown spiked considerably compared to May (1,050) and June 2019 (1,099) – up 21.9% year-over-year! Again, we’ll see the impact of those homes that went under contract when July and August’s closings are reported.
New listings by Chicago neighborhood
New listings increased in every neighborhood near the urban core of Chicago compared to a year ago – the Loop (+12.3%), West Loop (+20.3%), South Loop (+15.2%), River North (+11.9%), Gold Coast/Streeterville (+23.6%), Old Town (+10.6%), Lincoln Park (+15.4%), Lakeview (+10.5%), Logan Square/Bucktown (+7.4%), West Town/Wicker Park (+26.8%), Avondale/North Center (+4%). This isn’t uncommon during an election year, and certainly not when there’s so much uncertainty with the broader economy.
Under contract by Chicago neighborhood
In June, homes under contract increased in the West Loop (+6.2%), South Loop (+13.1%), Old Town (+17.4%), Lincoln Park (+39.7%), Lakeview (+30.1%), Logan Square/Bucktown (+31.8%), West Town/Wicker Park (+54.2%) and Avondale/North Center (+48.2%). These neighborhoods could prove to be COVID-proof and long-lasting home buyer destinations, since again, Chicago was far from its normal hustle and bustle earlier this summer.
Meanwhile, the enclaves closer to downtown suffered with homes under contract in June – including the Loop (-11.1%), River North (-5.3%), Gold Coast/Streeterville (-25%). A number of factors could contribute to this – fewer needing to be close to the office, and more needing extra square footage that the high-rise lifestyle doesn’t accommodate.
Home prices by Chicago neighborhood
Home prices were up year-over-year in River North (+5.3%), Old Town (+0.3%), Lakeview (+1.1%), Logan Square/Bucktown (+0.8%), West Town/Wicker Park (+0.9%) and Avondale/North Center (+3.8%). No groundbreaking gains occurred, but noteworthy given the current climate.
(cont.) Meanwhile, home prices in The Loop (-14.6%), West Loop (-8.6%), South Loop (-11.1%), Gold Coast/Streeterville (-3%), Lincoln Park (-1.5%) fell compared to a year ago.
Closed sales by Chicago neighborhood
The only neighborhood that saw more sales than last year was River North (+13.5%).
Everywhere else we specialize and report on – The Loop (-51.6%), West Loop (-39.2%), South Loop (-42.2%), Gold Coast/Streeterville (-45.7%), Old Town (-29%), Lincoln Park (-42.4%), Lakeview (-14.6%), Logan Square/Bucktown (-33.8%), West Town/Wicker Park (-33%), Avondale/North Center (-33.6%) – had fewer closed sales this June compared to last June.
Days on the market by Chicago neighborhood
Two neighborhoods near downtown Chicago saw homes sell faster this June compared to a year ago – West Loop (-20 days) and West Town/Wicker Park (-6 days).
Everywhere else, buyers took their time. Market time grew in the Loop (+34 days), South Loop (+31 days), River North (+17 days), Gold Coast/Streeterville (+59 days), Old Town (+33 days), Lincoln Park (+29 days), Lakeview (+17 days), Logan Square/Bucktown (+4 days) and Avondale/North Center (+6 days).