North Side Home Sales 'Sluggish' In 1st Quarter: Report

CHICAGO — Home sales across many of Chicago’s North Side neighborhoods was relatively sluggish in the first quarter of 2019, according to a quarterly North Side Market Report by The Wilcox Company. In total, 1,712 units were sold in the first quarter, a decline of 9.9% when compared to the same quarter of 2018, the company reported. The median sales price fell 10.9% to $336,500.

The North Side Market Report covers nine of Chicago’s 77 community areas: Edgewater, Lake View, Lincoln Park, Lincoln Square, Near North Side, North Center, Rogers Park, Uptown and West Ridge.

First-quarter sales increased in just two of those nine neighborhoods, gaining 23.4% in Edgewater and 12.2% in Rogers Park, according to the report. Sales in West Ridge were flat compared to 2018 results.

Elsewhere sales activity dipped 10.7% in Lake View, 6.5% in Lincoln Park, 22.5% in Lincoln Square, 22.8% in North Center, 21% in the Near North Side and 2.4% in Uptown.

The median sales price rose in three communities, gaining 2.1% in Edgewater, 4.4% in Lincoln Park and 8.3% in West Ridge, while falling elsewhere. The declines were 10.8% in Lake View, 6.8% in Lincoln Square, 8.8% in North Center, 11.1% in the Near North Side, 7.2% in Rogers Park and 4.8% in Uptown.

Mary Jo Nathan, a broker associate with The Wilcox Company, prepared the report using sales data collected by Midwest Real Estate Data, a regional multiple listing service.

“What we see in those results are fairly brisk sales activity in the northern-most communities — Edgewater, Rogers Park, Uptown and West Ridge — where prices tend to be the lowest, and slower sales in higher priced areas, especially the Near North Side and North Center, while Lincoln Park saw only a modest sales decline,” she said.

The North Side market is dominated by sales of attached homes, primarily condominium apartments, but also townhouses, The Wilcox Company said. Of the 1,712 homes sold during the quarter, only 10.2% were single-family homes.

“The shift in activity toward the lower end of the market stems from a continued demand for moderately priced condos, while buyers’ interest in pricier condos and single-family homes was somewhat muted,” Nathan said. “One likely explanation for those trends is that purchases of modestly priced homes often are driven more by basic economic factors, such as mortgage interest rates and employment levels, both of which were at supportive levels in recent months. Plus, many buyers in this segment are first-time purchasers seeking the long-term stability offered by homeownership.

“On the other hand, more expensive residences are typically purchased by buyers who already own but want something better suited to their current situation, and a wide range of factors, from rising property taxes to the uncertainty surrounding the recent city elections, could encourage a delay in their buying decision,” she said.