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What's Happened In The Chicago Real Estate Market (Part 3/5)

The past two years have been interesting for real estate in the Chicago metro. There is a lot to cover so we are doing a 5-part post. We will publish these reports on a weekly basis. If you wish to receive the full report right away, please reach out to a Soloma team member or click here if you have not been in contact with a team member. This is not meant to be investment advice; this is our interpretation of what has happened in the Chicago real estate market based on data and our team’s experience.

Chicago High-Density Neighborhoods (HDN) Single Family Homes

The trends in high density neighborhoods (Loop, Near North Side, Near West Side, and Near South Side) for single family homes were similar directionally as what was experienced for single family homes city-wide. Transaction volume increased 7.2% yr/yr to 72 units sold in 2020 and average sale price increased 3.1% yr/yr to $1,176,993. Days on market remained flat at 118 days.

The 2021 figures really jumped up with transaction volume increasing 66% yr/yr to 123 homes sold and average sales price increased 16.5% to $1,370,886. Interestingly, despite the increase in transaction volume, days on market increased as well by 32% yr/yr to 156

days. This is a peculiar disconnect that we cannot explain.

Chicago HDN Condos & Townhomes

The trends in high density neighborhoods for condos had much more significant moves in the metrics in 2020 and 2021 and - in 2020 - were divergent from trends we saw for condos and townhomes city-wide with a significant snapback in 2021. Specifically, in 2020 transaction volume decreased 17.2% yr/yr to 4,070 and average price declined 4.5% yr/yr to $475,562. The data suggests that the demand for condos in 2020 shifted from high-density neighborhoods to single family homes in the city, single family homes in the suburbs, and condos & townhomes in lower density neighborhoods within the city.

For condos in high density neighborhoods, 2021 was a comeback year as both volume and average sale price ripped through increasing 61.5% and 18.4% yr/yr, respectively, to 6,573 and $563,169. At the same time, average days on market increased 16.2% yr/yr to 111, indicating it became more of a buyers’ market during this time period despite the elevated level of activity.

We believe this trend reversal had to do with a slowdown of individuals and families moving out of the city and perhaps even a reversal of that trend. Separately, our team has certainly had clients who previously moved out of the city to the suburbs that have recently engaged us to find a home in the city. We have also seen clients take advantage of the strong market in the suburbs by selling, only to buy at a discount in the city.

We will be posting part 4 next week in which we discuss what happened to single family homes and condos and townhomes in the Chicago suburbs. If you don’t want to wait, reach out to a team member via the contact form or click here if you want it emailed directly to you automatically.


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