(Above) Foster Beach in Lincoln Park, the Chicago neighborhood where 358 condo units and townhomes sold in 2Q 2024, increasing the median sales price of attached homes in Lincoln Park 7.3 percent to $625,005. Photo by 606 Vision.

By Don DeBat

24-Jul-24 – Despite lofty mortgage rates, North Side existing-home sales in the second quarter of 2024 beat residential marketing activity in the rest of Chicago.

Sales activity rose 4.1 percent across the North Side despite mortgage interest rates generally at 7 percent or more, combined with steadily rising home prices and a continuing shortage of available homes, according to the Chicago North Side Market Report. The analysis is prepared quarterly by Mary Jo Nathan of Baird & Warner’s North Center office at 4037 North Damen Avenue.

The comprehensive report tracks sales of detached single-family and attached condominiums and townhomes in the neighborhoods of Edgewater, Lakeview, Lincoln Park, Lincoln Square, Near North Side/Gold Coast, North Center, Rogers Park, Uptown, and West Ridge.

“North Side sales of homes, condos, and townhomes totaled 2,839 units for the second quarter, reversing a 5.6 percent decline in the prior quarter,” said Nathan (right).

The strong residential marketing rebound created a modest 0.4 percent increase in unit sales for the first half of this year. However, because of a shortage of listings of residences for sale at the end of June, sales activity declined 4.3 percent from one year earlier, Nathan noted.

The time needed for a home sold in the second quarter to find a buyer fell to 55 days from 61 days a year earlier, and the second-quarter median home price for the North Side gained 6.2 percent to $430,000.

Overall, the North Side market easily outperformed the city as a whole, as rising home prices and high interest rates seemed to slow sales more markedly in other neighborhoods of Chicago, Nathan said. Citywide, sales for the quarter were down 2.1 percent to 6,932 units, while the median sales price gained 7.2 percent to $370,000.

“The second-quarter increase in North Side sales is notable because year-over-year sales had been down for the prior five quarters, so this is a positive sign, and we’d love to see further sales gains,” said Nathan. “However, current price levels and the lack of inventory continue to make this a challenging market for buyers. It’s a familiar tune but remains accurate.”

Edgewater, Uptown, and West Ridge – neighborhoods where inventory rose – saw solid sales increases, while in areas such as Lakeview and North Center, where inventory shrank, sales tended to decline, Nathan observed.

Second-quarter sales of single-family homes on the North Side rose 9.4 percent to 244 units. The median sales price slipped 2.6 percent to $1,272,500, marking the 15th consecutive quarter where the median sales price exceeded $1 million. The average time it took to find a buyer for homes sold during the quarter was 67 days, up from 59 days a year earlier.

“The median price decline stemmed primarily from the strong increase in sales seen in West Ridge and Edgewater, where prices generally are below the North Side median,” explained Nathan.

Sales of single-family homes rose 68.2 percent in West Ridge to 37 units, and 66.7 percent in Edgewater to 20 units. However, unit sales fell 3.3 percent in Lincoln Square to 29 units, and 14.3 percent in Lakeview to 36 units.

Home prices rising

Median sales prices of single-family homes rose in six of the nine communities. When compared with the same period in 2023, the second quarter 2024 gains were:

• Uptown – Up 38.5 percent, a hefty increase to $1,350,000
• Edgewater – A solid gain of 37.3 percent to $1,064,000
• West Ridge – Up 29.2 percent to $600,000
• Lincoln Square – Up 5 percent to $1,070,000
• Rogers Park – Up 1.4 percent to $611,109
• Lincoln Park – Up a slight 1.1 percent to $1,795,000

Median prices fell 38.6 percent on the Near North Side/Gold Coast to $1,350,000. Prices slipped 10.4 percent in North Center to $1,267,500, and 2.9 percent in Lakeview to $1,632,500.

Condo and townhouse sales rebounding

Attached homes accounted for 2,595 unit sales during the second quarter, a 3.6 percent increase from one year earlier. Attached homes consist primarily of condominium units and townhouses.

Condo and townhome sales rose in six of the nine neighborhoods that make up the North Side, after only one area posted an increase during the prior quarter.

“Most important for the condo and townhome market, the Near North Side continued seeing attached sales rebound, registering a 13.1 percent increase to a solid 878 units,” Nathan said.

The Near North Side/Gold Coast area accounted for 33.8 percent of attached sales on the North Side during the quarter and for 19.2 percent of attached sales citywide. Attached sales also rose 9.5 percent in both Lincoln Square (81 sales) and North Center (104 sales), and gained 5.1 percent in Rogers Park to 144 sales, 3.4 percent in Uptown to 242 sales, and 2.3 percent in Edgewater to 218 sales. (Left) Townhomes along Elm Street in Chicago’s Gold Coast neighborhood.

Condo and townhome sales were down 10.4 percent in West Ridge to 86 units, 4.9 percent in Lakeview to 484 units, and 3.2 percent in Lincoln Park to 358 units.

The median sales price of an attached home on the North Side rose 2.9 percent for the quarter to $390,000, while average market time decreased by 7 days to 54 days.

The median sales price rose in seven of the nine North Side neighborhoods. Edgewater led the way with a 19.5 percent gain to $260,500, followed by Rogers Park, up 15.0 percent to $230,000, and West Ridge, up 12.1 percent to $185,000.

Other condo and townhome gains were:

• 9.4 percent on Near North Side/Gold Coast to $432,055
• 7.3 percent in Lincoln Park to $625,005
• 5.0 percent in Lakeview to $451,300
• 4.7 percent in North Center to $565,625

However, the median price fell 19.1 percent to $352,000 in Lincoln Square and slipped 0.1 percent to $353,000 in Uptown.

Mortgage rates easing

On July 18, Freddie Mac’s Primary Mortgage Market Survey reported that benchmark 30-year fixed home loan interest rates slipped to 6.77 percent, down from 6.89 percent a week earlier. A year ago, lenders were charging an average of 6.78 percent.

“The 30-year fixed-rate mortgage fell to its lowest level since mid-March, dropping 12 basis points,” said Sam Khater (right), Freddie Mac’s Chief Economist. “However, home buyers have yet to respond to lower rates, as purchase-application demand is still roughly below spring numbers.”