Data Beginning to Point to a Balanced Real Estate Market in Chicago Old Town
For condominiums, co-ops, or town-homes that are located in buildings with eight or more units in Chicago Old Town, Q3 2018 vs Q2 2018 market statistics showed decreases in the number of properties sold and sales volume and average sales price, but an increase in median sales price. The median and average listing market times also increased but stayed under 26 days. Interestingly, the median and average SP:LP ratios for this district remained relatively flat, around 98%; this means sellers are experiencing some pressure. Regardless, looking at the months supply of homes chart below, we see that the Chicago Old Town real estate market remained a sellers market through October 2018. However, months supply of inventory did increase by 31% through October 2018 (as compared to 2017), which means as a buyer you do have more choice in inventory (i.e., homes for sale). And similar to the Chicago Lincoln Park real estate market, if you’re a seller in this market you should remain cognizant of SP:LP ratios hovering around 98%, which means that buyers are still negotiating lower prices, which will likely continue with increasing months supply of homes for sale.
Q3 2018 to Q2 2018 Chicago Old Town Market Comparisons
Property Types: Condos, Co-Ops, and/or Town-Homes located in buildings with 8+ units
Here is a map showing how we define the Chicago Old Town real estate market:
- Properties Sold: 49 (-40.2%)
- Sales Volume: $21,457,100 (-40.9%)
- Median: $420,000 (+24.0%)
- Average: $437,900 (-1.1%)
- Highest: $806,250 (-41.1%)
- Lowest: $163,000 (+18.1%)
Listing Market Times:
- Median: 19 days (+58.3%)
- Average: 25 days (-16.7%)
- Longest: 108 days (-62.4%)
- Shortest: 1 day (0.0%)
- Median: 98.0% (0.0%)
- Average: 98.7% (+0.1%)
- Highest: 111% (-1.8%)
- Lowest: 91% (+1.1%)
The months supply of homes through October 2018, as compared to October 2017, showed an increase of 31.0% to 3.8 months supply. This means that the data is showing the Chicago Old Town real estate market is still a sellers market. But this increase in total homes for sale is giving buyers more choice and, thus, sellers should expect buyers to begin to strongly negotiate offer prices for listed properties. This fact is corroborated by SP:LP ratios hovering around 98%.
In summary, the Chicago Old Town real estate market, based on months supply of homes, remains a sellers market. However, buyers seem to have decent price-negotiation power as indicated by SP:LP ratios hovering 98%. Thus, sellers in this market should not be surprised by buyers’ aggressive negotiation tactics.
** 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.