Real Estate

Positive employment numbers combined with prevailing attractive interest rates should indicate a market with a solid, upward trajectory.  However, as we complete the first month of the second quarter, we are still experiencing a rather tepid recovery—due largely to a lack of homes for sale.

Chicago’s real estate market continues to perform well.  There have been market fluctuations, particularly in the luxury segment, but the overall tempo is consistent and there are a number of healthy omens. 

The real estate market across Chicago continues its advance with indicators pointing to a healthy fall selling season.   There was some tepidity over the past couple of months, particularly in the luxury sector, likely due to a number of factors from seasonal slowdown during peak summer [vacation] time to uncertainty over stock market volatility and the extent of property tax increases.

News reports state that the real estate market is booming and, in the Sheffield neighborhood, it certainly is ahead of last year’s numbers of closed sales and contract pendings.  The accompanying chart shows the increases for single-family and condominium homes.

Although we thought we beat winter with a mild December and January, February’s frigid weather seemed as though it wouldn’t stop.  In spite of the weather, however, this year’s number of contract pending properties in the neighborhood for the first two months exceeds last year’s by 24%, or 36 in 2015 compared to 29 in 2014.  Closed sales have also increased for the same period to 27 in 2015 from 21 in 2014, or 29%.

The average selling price of real estate in the neighborhood has been increasing, as has the number of closed transactions.  Average single-family home prices rose 27% from 2013 to 2014:  $1,467,230 to $1,860,773.  The number of condo sales decreased by 10% from 138 in 2013 to 124 in 2014, but the average selling price increased from $481,638 to $531,226, or 8%.  And, in keeping with the search for development property, the number of multi-unit sales rose 71% from 7 to 12, and the average sel

While the number of sold single-family home transactions in the neighborhood has decreased by 15%, from 31 to 27 from 2013 to 2014, the average selling price has increased by 26%, from $1,469,242 to $1,874,486.  The number of sold condos has also decreased by 8%, 109 in 2013 to 101 in 2014, and the average selling price has increased by 13%, from $476,603 to $537,638.  See the accompanying chart below.

The Sheffield Neighborhood* has been fortunate to not experience the housing slump that exists in many other parts of the city and the country.  For the past three years, the number of contracts and closed sales has remained fairly consistent.  However, the average selling price of a single-family home in the neighborhood has increased dramatically, while the average selling price of a condo has decreased dramatically for the first quarter.  See the chart below for details. 

Even with our never-ending winter weather, real estate activity in the Sheffield Neighborhood is about the same as last year for January through February — almost identical with the number of properties under contract.

According to the reported data from the Midwest Real Estate Data LLC**, 2013 to date is about the same as 2012: 185 vs. 183 total residential transactions.  And their average selling prices are about the same.  The chart below shows the differences from 2011 to 2012 to 2013.

Latest FYI’s