Strong Sellers Market in Two Chicago West Loop and River North Real Estate Districts
Recently, the Wall Street Journal reported, “U.S. Existing-Home Sales Rose in October“, then added “Sales, however, fell on an annual basis, signaling continued weakness in the housing market“. Similarly, the New York Times reported, “Why the Housing Market Is Slumping Despite a Booming Economy” and “U.S. Home Builder Sentiment Posts Biggest Drop in 4-1/2 Years“.
As Mike Tyson said, “Everybody has a plan until they get punched in the mouth.” Yes, it seems the housing market, nationally and in Chicago, has been punched. Moderately hard. In a shoulder. But Chicago is a dynamic market, and there are nearly always hyper-local districts that parry a series of market-based punches.
Looking at 2018 October numbers versus 2018 Q3 numbers for condominiums, co-ops, or town-homes that are located in buildings with eight or more units, this post will focus on two real estate bright spots for sellers within the Chicago West Loop and Chicago River North areas. The hyper-local districts that parried the market punches for sellers are: Chicago West Loop Skinner Park District and River North East Bank District.
Generally, both districts saw average home prices increase, average listing market times decrease (getting closer to the median number of days on market), and average Sales Price versus List Price ratios (i.e., SP:LP ratios) remain above 100%. Additionally, both markets have less than six months supply of homes for sale. This data indicates that each district remained a sellers market through October 2018. Here are links to the 2018 Q3 West Loop report and the 2018 Q3 River North report, which discuss the 2018 Q3 numbers for the West Loop Skinner Park and River North East Bank districts (these reports also discuss broad market conditions and several other district-by-district conditions too).
Chicago West Loop Skinner Park District
Property Types: Condos, Co-Ops, and/or Town-Homes located in buildings with 8+ units
2018 October Sold Prices
- Median: $355,000 (+4.41%)
- Average: $631,613 (+27.09%)
2018 October Listing Market Times
- Median: 6 days (-62.50%)
- Average: 10 days (-54.36%)
2018 October SP:LP (Sales Price vs List Price)
- Median: 99.50% (+0.51%)
- Average: 100.65% (+1.29%)
2018 October Months Supply of Homes
2018 Q3 Comparison Report for Skinner Park District
The Skinner Park District in Chicago West Loop was a sellers market in 2018 October. First, median and average sold prices increased. Second, median listing market time decreased by 62.50% and average listing market times had a 54.36% decrease, with both coming in under 11 days. Third, SP:LP ratios hovered around 100%; thus, sellers were holding firm on their selling prices, with some sellers accepting a slightly lower offer. Regardless, buyers in some cases likely still faced a bidding war for coveted properties. Finally, months supply of homes for 2018 October was at 2.5 months. Generally, a market is considered a sellers market when months supply of homes remains under six months.
Chicago River North East Bank District
Property Types: Condos, Co-Ops, and/or Town-Homes located in buildings with 8+ units
2018 October Sold Prices
- Median: $420,000 (-13.85%)
- Average: $559,967 (+6.67%)
2018 October Listing Market Times
- Median: 24 days (+29.73%)
- Average: 29 days (-12.88%)
2018 October SP:LP (Sales Price vs List Price)
- Median: 100% (-1.96%)
- Average: 100.48% (-1.11%)
2018 October Months Supply of Homes
2018 Q3 Comparison Report for East Bank District
The East Bank District in Chicago River North reached near parity in October 2018 for listing market times, looking at both median and average numbers. This means that this district appears to be stabilizing in regard to listing market times through October 2018. There is, however, some price fluctuation. The sold price data detailed above is weighted right, which means there is outlier data on the higher end that’s making it so the average is higher than the median price. And, indeed, the highest sold price for October 2018 was $1,450,000 whereas the lowest sold price was $293,000. Regardless, the more telling statistics to look at are SP:LP ratios and months supply of homes. With SP:LP ratios above 100%, this means that sellers held firm on their prices or accepted offers more than their asking (i.e., listing) price. Moreover, 3.4 months supply of homes through October 2018 indicates a sellers market.
In summary, the Chicago West Loop Skinner Park District and Chicago River North East Bank District parried national and regional market punches through October 2018, remaining robust markets for sellers. As compared to 2018 Q3, both markets have strong market indicators that buyers still experienced a tight market when looking for properties to purchase.
Market statistics and information compiled by Anne Ewasko and Eric Bryn of Lux Home Chicago. This compilation of market statistics and information is deemed reliable but is not guaranteed accurate by the MRED MLS, Lux Home Chicago, or Baird & Warner.