Sales Of North Side Million-Dollar Homes Remains Strong
Homeowners in rapidly appreciating neighborhoods such as the Near North, Lincoln Square and North Center must think their million-dollar residences are made of gold bricks.
The quarterly Chicago North Side Market Report tracks resale home sales in nine neighborhoods—and six of the booming areas now showcase median detached single-family home prices of $1-million or more.
The Gold Coast/Near North market led the pack in the 1st quarter of 2022 with a median home price of $2.375 million. Lincoln Park was second with $1.59 million, followed by Lake View with $1.4 million.
North Center was fourth in median home price at $1.35 million, followed by Lincoln Square at $1,06,875 and Uptown at $1,085,500. The report also studied Edgewater ($975,000), Rogers Park ($630,000) and West Ridge ($425,000).
After posting record sales volume in 2021, North Side home sales set a new mark during the first quarter of 2022, aided by a strong rebound in the Near North market.
A total of 2,492 units sold across the North Side, up 7.6% from the same period last year. Those results were achieved even as the overall inventory of homes for sale shrank by 37.1% from its level 12 months earlier.
At the same time, the median home sales price in the nine community areas that make up the North Side rose only 1.8% for the quarter to $384,250, while the average time that those homes took to find buyers was unchanged at 102 days, according to the report prepared by Mary Jo Nathan of the Charese Team at Compass Roscoe Village, based at 2044 W. Roscoe St.
North Side market strong
The North Side results were somewhat stronger than those of the broader city market. First-quarter sales in Chicago as a whole rose 5.5% to 6,587 units, and the median sales price fell -1.2% to $325,000.
“Our sales data go back 15 years, and this year—for the first time—North-Side sales topped the 2,370-unit first-quarter sales completed in 2007,” noted Nathan. “The spring market is exceptionally competitive, and the most successful buyers have been extremely aggressive in bidding for homes.”
The quarterly increase in sales volume was achieved even though only two of the nine community areas—Lincoln Square and Near North—reported higher total sales for the period. The 44.8% increase in Near North sales, representing a gain of 213 transactions, more than compensated for the small decreases seen in most other areas.
Single-family homes accounted for just 9.2% of all North Side home sales during the quarter but those million-dollar digs were in high demand. Sales rose 10.1% to 229 homes, and the median sales price of $1.2 million represented a 14.6% increase over the same quarter last year.
Average market time for these homes was 86 days, 17 days less than a year ago. The inventory of homes for sale fell by 44.7% to 130 units at the end of March.
Despite the shortage of single-family home listings, sales volume rose in six of the nine North Side community areas, led by Near North, where 15 luxury sales represented a 400% increase in volume over the 1st quarter of 2021.
Other areas recording higher sales volume were: Edgewater, up 63.6%; Lincoln Square, up 31%; Lake View, up 21.4%; Rogers Park, up 33.3% and West Ridge, up 16%.
Single-family sales volume fell most sharply in North Center, where they were down 32.6% to only 31 units, a result due in good part to the lack of listings. There were only 11 unsold homes on the market in hot North Center at the end of the quarter, barely a one-month supply.
The median sales price for single-family properties rose in seven areas, led by gains of 103% in Near North, 40.8% in Rogers Park and 23.6% in North Center. Lake View and Lincoln Park recorded resale price declines of -7.4% and -10.9% respectively.
Condo market recovering
The attached-home segment of the North Side market also faced headwinds from declining inventory, but they were not as severe. While single-family homes on the market on March 31 represented no more than 1.7-month supply, there was nearly a three-month supply of attached homes available.
Attached sales, which includes condominiums, co-ops and townhomes, for the quarter climbed 7.4% to 2,263 properties. Their median sales price gained 2.9% to $345,000, and average market time increased by 2 days to 104 days.
The first quarter confirmed the fact that the Near North condominium market is in full recovery mode after a sharp pandemic-related slowdown. Sales there rose 42.6% to 673 units, the most since 2007, and the median sales price gained 14.7% to $453,000, the highest quarterly median recorded in that market area since at least 2007.
Attached sales volume declined in five community areas, again reflecting a lack of inventory. For example, sales fell -3.4% in Lake View while inventory dropped -40%, and sales in North Center were down -12% although inventory declined -53.7%. Only Lincoln Square, up 11%, and Uptown, up 0.5%, joined Near North as sales-volume gainers.
Median sales prices for attached homes showed mixed results, gaining in five areas and falling in four. Gainers, in addition to Near North, were North Center, up 14%, Lincoln Square, up 4.6%; West Ridge, up 4%; and Lincoln Park, up 1.0%.
Median price declines were 7% in Rogers Park, 5.2% in Lake View, 2.8% in Edgewater and 0.5% in Uptown.