The Chicago West Loop real estate scene is hot as evidenced by the market statistics we detail below**. The Chicago West Loop market generally mirrors broad national trends of low housing inventory and relatively high buyer demand (for more details on national real estate statistics, click this link). The big picture for the Chicago West Loop real estate market is average sales prices — across all districts — continue to increase, listing market times are short, many properties receive multiple offers from several buyers, and many properties are only getting in a few showing requests before being sold. The hottest district in the Chicago West Loop is the Fulton Market District, which has the highest Sales Price vs List Price ratios (SP:LP) and low listing market times. Here is a map showing how we define the Chicago West Loop real estate market:
Chicago West Loop Residential Real Estate Market Statistics
Following is a series of charts showing key residential real estate market trends in the Chicago West Loop for attached, single-family homes, January 2017 – August 2018 (unless otherwise noted).
Closed Sales
Closed Sales in the Chicago West Loop for the 12-month period ending August 2018 came in at 961 units, which represents a 6.5% increase over August 2017 and a 9.8% increase from August 2016 (each similarly representing a 12-month period of activity). This steady sales growth represents a healthy market with overall low volatility. Thus, both buyers and sellers can approach this market with confidence.
Median and Average Sales Prices
The peaks and valley nature of Median and Average Sales Prices represents the seasonality of the Chicago West Loop real estate market and/or sellers adjusting their price expectations to the market (i.e., some sellers lowering their initial listing price). The general trend, however, since January 2017, is steady price increases, which means that the West Loop remains a competitive market for buyers and robust market for sellers. For attached single-family properties in the Chicago West Loop, the August 2018 Median Sales Price was $500,000 (22% increase from August 2017) and the Average Sales Price was $639,643 (31.1% increase from August 2017).
Median and Average Market Times
The fluctuating and, in some instances, extended market times we’re currently observing for Chicago West Loop Median and Average Market Times could be the result of: (1) new developments that list their properties pre-construction and/or (2) older buildings that are less desirable given modern consumer tastes in design and aesthetics. Additionally, these fluctuating market list times mirror the seasonality and price considerations of Chicago West Loop average sales prices. For attached single-family properties in the Chicago West Loop, the August 2018 Median Market Time was 22 days (120% increase from August 2017) and the Average Market Time was 43 days (87% increase from August 2017).
Median and Average Percent of Last List Price
For attached single-family properties in the Chicago West Loop, the August 2018 Median Percent of Last List Price was 100% (0.4% increase from August 2017) and the Average Percent of Last List Price was 100.1% (0.3% increase from August 2017). Regarding Average Percent of Last List Price, “last list price” is the price that immediately precedes the sales price of a property (for example, a property could initially enter the MRED MLS at a $6400,000 sales price and then after a few weeks this price is adjusted to $630,000; the former price is the original list price and the latter price is the last list price). The Percent of Last List Price statistic is also known as a SP:LP ratio (Sales Price:List Price ratio); a SP:LP over 100% means a property sold for more than last listing price, whereas a SP:LP under 100% means a property sold for less than last listing price. The fluctuations detailed in the above charts could be the result from sellers adjusting price expectations downward after perhaps initially seeking a higher price, while other sellers are starting with list prices that initially align with buyers’ expectations and, thus, do not require downward price adjustments. The primary implications of these statistics are (1) if a property is initially priced correctly, sellers can likely expect heightened interest in their property perhaps receiving multiple offers, and (2) buyers can likely expect competition with other buyers when looking to purchase a property and, thus, should have either enough cash or secure an appropriate mortgage pre-approval before making an offer on a property.
Months Supply of Homes for Sale
The steady increase in Months Supply of Homes for Sale from January 2018 through August 2018 means more properties steadily entered the Chicago West Loop real estate market during this time-frame. Essentially, more real estate developers and existing home owners offered their properties for sale. A six-month supply of homes to sell generally represents a balanced market between supply and demand. For attached single-family properties in the Chicago West Loop, August 2018 ended with a 3.2 months supply of homes (10.3% increase from August 2017). This means it would take a little more than three months for available homes to sell in the Chicago West Loop if no additional homes were listed and demand kept at its current pace. Thus, although the Chicago West Loop real estate market is beginning to mirror national trends with an increase in housing inventory, this market is still, decidedly, a sellers market.
Showings Per Listing
With respect to Showings Per Listing one might think that the downward nature of this property showing statistic implies waning demand, but realistically it’s due to extremely fast selling times (i.e., shorter listing market times). The implication for buyers: In essence, if you snooze you lose so you have to stay on top of properties entering the market. The implication for sellers: If you properly price your property to match market and buyer expectations, you could likely sell your home within a fairly short time frame. Showings Per Listing for attached single-family homes in the Chicago West Loop for August 2018 was 3.8 showings (17.1% decrease from August 2017).
District Level Q2 2018 Chicago West Loop Real Estate Market Statistics
Continuing our analysis of the Chicago West Loop real estate market, we’ll now focus on Q2 2018 sold property statistics for condos, co-ops, and/or town-homes in buildings with eight or more units (the types of buildings we specialize in at Lux Home Chicago). To give you more insights into the Chicago West Loop residential real estate market, we’ve broken down this market into five districts: West Loop Fulton River District, West Loop Fulton Market District, West Loop Central Loft District, West Loop Union Station District, and West Loop Skinner Park District. Each of these districts represents a unique vibe. The following analysis of these districts will focus on Q2 2018 market statistics.
(1) Chicago West Loop Fulton River District Market Statistics April 1, 2018 – June 30, 2018
- Properties Sold: 53
- Sold Price: $417,000 median / $501,649 average
- Listing Market Time: 9 days median / 24 days average
- SP:LP: 100% median / 101% average (111% was the highest SP:LP)
The map below shows the market boundaries we use to designate the Chicago West Loop Fulton River District real estate market and properties for sale.
(2) Chicago West Loop Fulton Market District Market Statistics April 1, 2018 – June 30, 2018
- Properties Sold: 31 properties sold (revised 2018 Sept 19)
- Sold Price: $927,000 median / $773,650 average (revised 2018 Sept 19)
- Listing Market Time: 8 days median / 17 days average (revised 2018 Sept 19)
- SP:LP: 105% median / 104% average (117% was the highest SP:LP)
The map below shows the market boundaries we use to designate the Chicago West Loop Fulton Market District real estate market and properties for sale.
(3) Chicago West Loop Central Loft District Market Statistics April 1, 2018 – June 30, 2018
- Properties Sold: 97 (revised 2018 Sept 19)
- Sold Price: $483,000 median / $550,532 average (revised 2018 Sept 19)
- Listing Market Time: 7 days median / 16 days average
- SP:LP: 100% median / 101% average (113% was the highest SP:LP)
The map below shows the market boundaries we use to designate the Chicago West Loop Central Loft District real estate market and properties for sale.
(4) Chicago West Loop Union Station District Market Statistics April 1, 2018 – June 30, 2018
- Properties Sold: 51
- Sold Price: $305,500 median / $334,418 average
- Listing Market Time: 11 days median / 25 days average
- SP:LP: 100% median / 100% average SP:LP (114% was the highest SP:LP)
The map below shows the market boundaries we use to designate the Chicago West Loop Union Station District real estate market and properties for sale.
(5) Chicago West Loop Skinner Park District Market Statistics April 1, 2018 – June 30, 2018
- Properties Sold: 51
- Sold Price: $375,000 median / $445,167 average
- Listing Market Time: 10 days median / 27 days average
- SP:LP: 98% median / 99% average (107% was the highest SP:LP)
The map below shows the market boundaries we use to designate the Chicago West Loop Skinner Park District real estate market and properties and sale.
In summary, the West Loop real estate market of Chicago remains a very competitive market for buyers and an opportunity market for sellers. Although housing inventory increased slightly in August 2018 across the United States, the Chicago West Loop remains a relatively low supply and high demand area for now.
** 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.