Downtown Sales Crash and Outlying Areas Reborn
September was an interesting month for real estate sales in Chicago and its suburbs.
Downtown which includes areas such as River North, Streeterville and the Gold Coast, inventory rose a whopping 46% compared to September 2019. That’s historic. 891 new condo listings hit the market compared to 665 last September. Some of that is just a delayed busy season due to COVID, as year to date listings are only up 8% compared to last year. But the sharp rise in inventory is telling: 46% rise from last September. In raw figures, that means the inventory of homes for sale was 1,548 and now its 2,216. Word on the street is that you must lower your listing price dramatically to get a sale, especially for units that have not been updated.
So where are people buying homes?
For those opting to stay in the city, almost every Northside area saw a large increase in both sales, median sales prices, and new listings/inventory. No doubt, some people want to keep city life but no longer need to be close to work downtown. We will wait and see what the huge increase in inventory means in the next six months. Typically, it will reduce sales prices as we move from a undersupply of homes to a balanced market to an oversupply.
How are the suburbs fairing?
Sales in Northern Cook County (including Glenview, Park Ridge, North Shore) are up 43% from last September for an increase of 14% in median sales price. Inventory of homes is down 14%. In Lake County, sales are up 59% and sales prices 20% from last September. DuPage is the same story, an increase in 50% in closed sales with an increase of 8% in median sales price.
That’s all for now. Just a reminder that we service all of these areas and also offer flat fee listings on the MLS if you want to save money listing yourself. Rates are still super low, so you should call me if your current mortgage interest rate on a 30-year fixed rate mortgage is 3.75% or less (we have no cost refinance options).