Skyrocketing mortgage interest rates, a plummeting stock market, and soaring inflation have dramatically slowed the pace of home sales activity across Chicagos North Side.
24-Oct-22 While combined sales of attached and detached homes were off 8.4 percent in the second quarter compared to the same period in 2021 a fairly modest decline third-quarter sales fell by a shocking 26.3 percent, disclosed the quarterly North Side Market Report.
Combined sales of detached and attached homes on the North Side totaled 2,577 units for the July-September quarter, and the median sales price was $382,000, edging up 0.3 percent. For the seven-county Chicago metro area, the comparable results for the quarter were a 22.1 percent decrease in sales activity and a 4.3 percent rise in the median sales price.
The report, prepared by Mary Jo Nathan of Baird & Warners North Center office at 4037 North Damen Avenue, tracks home sales in Edgewater, Lake View, Lincoln Park, Lincoln Square, Near North Side, North Center, Rogers Park, Uptown, and West Ridge.
On October 20, Freddie Macs Primary Mortgage Market Survey reported that benchmark 30-year fixed-rate mortgages averaged 6.94 percent nationwide, up from 6.92 percent a week earlier. A year ago, the 30-year fixed-rate loans averaged 3.09 percent.
Fifteen-year fixed-rate mortgages averaged 6.23 percent on October 20, up from 6.09 percent a week earlier. A year ago, the 15-year fixed rate average was only 2.33 percent.
In addition, home builder confidence has dropped to half of what it was just six months ago and construction, particularly the single-family residential sector, continues to slow, Khater noted.
The inventory of existing homes grew slightly during the quarter, but attached homes which represent about 90 percent of the total North Side market saw nearly a 30 percent decline in units for sale, she said.
As a result, homes continue to sell quickly, with the average market time for units sold during the third quarter of 2022 coming in at 53 days, compared to 70 days for the same period last year.
That 53-day average is somewhat misleading because it is skewed by the relatively long market times for a few multi-million-dollar properties, noted Nathan. The Near North Side was the only one of the nine community areas with a third-quarter average market time of more than 48 days.
Condo and townhome sales down, prices up
Sales of attached homes, which are primarily condominium apartments and townhomes, totaled 2,318 units for the quarter, a decline of 26 percent from the same quarter last year, while the median sales price gained 0.9 percent to $350,000.
The decline in sales activity was fairly uniform across the North Side, with only two of the nine community areas not recording a unit sales decline of between 22 and 29 percent. The exceptions were Lincoln Square, where sales fell 7.3 percent, and Uptown, where they were down 33.4 percent.
Price trends were more mixed, with Edgewater, Lincoln Park, Lincoln Square, Near North, Uptown, and West Ridge all recording higher median sales prices, while Lake View, North Center, and Rogers Park saw the median price fall. At the same time, the average market time for condos and townhomes was 54 days for the quarter, down from 71 days last year.
The North Sides single-family (detached) home market benefitted from an increase in inventory, which expanded from 197 homes for sale at the end of the second quarter to 237 homes for sale at the end of the third quarter. Nonetheless, sales were off 28.7 percent from the third quarter of last year.
The median home price, however, continued the upwards trajectory seen in recent quarters. For the North Side as a whole, the median single-family price was up 8.8 percent for the quarter to a whopping $1,299,900.
The median price rose in seven of the nine North Side neighborhoods surveyed, with the strongest gains occurring in the lakefront communities of Lake View, Near North, Rogers Park, and Uptown.
North Side Median Prices 3Q 2022