Chicago's North Side Market Report: Home Sales Were Sluggish during 1st Quarter of 2019

CHICAGO, April 16, 2019 – Home sales activity across many of Chicago’s North Side neighborhoods was relatively sluggish in the first quarter of 2019, according to the quarterly North Side Market Report prepared by The Wilcox Company. Sales for the quarter totaled 1,712 units, a decline of -9.9% when compared to the same quarter of 2018, and the median sales price fell -10.9% to $336,500. The North Side Market Report covers nine of Chicago’s 77 community areas: Edgewater, Lake View, Lincoln Park, Lincoln Square, Near North Side, North Center, Rogers Park, Uptown and West Ridge.
First-quarter sales increased in just two of those nine areas, gaining 23.4% in Edgewater and 12.2% in Rogers Park and sales in West Ridge were flat compared to 2018 results. Elsewhere sales activity dipped -10.7% in Lake View, -6.5% in Lincoln Park, -22.5% in Lincoln Square, -22.8% in North Center, -21% in the Near North Side and -2.4% in Uptown.
The median sales price rose in three communities, gaining 2.1% in Edgewater, 4.4% in Lincoln Park and 8.3% in West Ridge, while falling elsewhere. The declines were -10.8% in Lake View, -6.8% in Lincoln Square, -8.8% in North Center, -11.1% in the Near North Side, -7.2% in Rogers Park and -4.8% in Uptown.
“What we see in those results are fairly brisk sales activity in the northern-most communities – Edgewater, Rogers Park, Uptown and West Ridge -- where prices tend to be the lowest, and slower sales in higher priced areas, especially the Near North Side and North Center, while Lincoln Park saw only a modest sales decline,” said Mary Jo Nathan, a broker associate with The Wilcox Company who prepared the report.
The North Side market is dominated by sales of attached homes, primarily condominium apartments, but also townhouses. Of the 1,712 homes sold during the quarter, only 10.2% were single-family homes. The sales data cited here is collected by Midwest Real Estate Data, LLC, the regional multiple listing service.
“The shift in activity toward the lower end of the market stems from a continued demand for moderately priced condos, while buyers’ interest in pricier condos and single-family homes was somewhat muted,” Nathan said. “One likely explanation for those trends is that purchases of modestly priced homes often are driven more by basic economic factors, such as mortgage interest rates and employment levels, both of which were at supportive levels in recent months. Plus, many buyers in this segment are first-time purchasers seeking the long-term stability offered by homeownership.
“On the other hand, more expensive residences are typically purchased by buyers who already own but want something better suited to their current situation, and a wide range of factors, from rising property taxes to the uncertainty surrounding the recent city elections, could encourage a delay in their buying decision,” she said.

Attached Homes
Sales of attached homes totaled 1,537 units during the quarter, -9.7% less than the same quarter last year. Median sales price was $312,000, a decline of -11.4%. Sales activity increased in three communities, led by Edgewater with a 23.3% gain. Also seeing higher sales were Rogers Park, up 7.5% and North Center, gaining 1.4%. The sharpest declines were -22.1% in Lincoln Square and, more significantly, a drop of -21% in the Near North Side. Elsewhere, sales were off -1.4% in West Ridge, -1.3% in Uptown, -12.1% in Lake View and -9.7% in Lincoln Park.
The shift in the market toward more moderately price units was underscored by the decline in median sales price registered for the Near North Side and Lake View, which are the two busiest markets for attached homes. The Near North Side median was down -11%, and it fell -19.4% in Lake View.
Average market time for attached homes, which is the number of days a listing is on the market before going under contract, rose to 103 days for the quarter from 93 days a year ago.

Detached Homes
The 175 single-family homes sold in the North Side market during the first quarter represented a decline of -12.1% compared to the same quarter in 2018. The median sales price of those homes was $950,000, 12.4% higher than a year ago, and average market time shrank by 4 days to 157 days.
Sales activity rose in five communities, gaining 57.1% in Rogers Park, 25% in Edgewater, 17.2% in Lincoln Park, 7.4% in Lake View and 3.4% in West Ridge. Areas with fewer detached sales were North Center, down -51.7%, Uptown and Near North, both down -25% and Lincoln Square, down -24%.
Lake View topped the list of communities seeing an increase in the median sale price. Its median rose 32.1% to $1,565,000. Other increases were in Edgewater, up 30% to $700,000; North Center up 20.8% to $1,160,000; Lincoln Square, which gained 9.6% to $740,000 and West Ridge, which increased just 0.7% to $352,500. Lower median prices were recorded in Rogers Park, down -1.8%; Uptown, down -7.7%, Lincoln Park, down -2.3% and Near North, down -6%.

####

The Wilcox Company, founded in 1967, provides a full range of real estate brokerage, appraisal and property management services. Its offices are at 2157 W. Irving Park Road, Chicago, in the heart of North Center. To learn more, visit our website at www.thewilcoxcompany.com.

Mary Jo Nathan
The Wilcox Company
2157 W. Irving Park Rd.
Chicago, IL 60618
773-398-3814
maryjo@wilcoxco.com

This release was published on openPR.