Chicago Home Prices Up 12 Percent As Scarcity Takes Hold

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Chicago Home Prices Up 12 Percent As Scarcity Takes Hold

Chicago home prices were up 12 percent in March from a year ago, with the typical property selling for $252,000.  Sales dipped 0.4 percent as buyers confronted a shortage of houses for sale.

The inventory of homes on the market fell 8.4 percent, the seventh consecutive month of declines and the steepest drop in two years. New listings were down 5.5 percent, the third drop in the past four months.

ChiPriceMar2016

One in four houses sold for more than asking price. A typical home was on the market 74 days in Chicago, ten days fewer than a year ago.

ChiSalesMar2016

With rental prices rising, property owners have a strong motivation to lease instead of sell.

“Would-be sellers are hoarding the houses,” Redfin real estate agent Greg Whelan said. “I’ve had more and more clients keep their current home and rent it out after purchasing a new one.”

“The low interest rates over the past five years make holding onto an appreciating asset all the more appealing,” said Whelan. “Currently, there are few other avenues available to get a solid return on your money. Cashing out just doesn’t makes sense if there’s no need to do so, especially when leasing your property often well exceeds your costs.”

ChiInventoryMar2016

Additionally, properties with two to four units, an asset class coveted by small investors looking to profit from rising rents, are in demand. The median price on those multi-unit buildings jumped a whopping 40.8 percent last month, to $159,450.

As with single-family homes, multi-unit inventory was down 12.5 percent. That pushed sales down 31 percent in March compared to a year ago.

Hot Neighborhoods

In Oakland, a near Southside neighborhood along Lake Michigan, only 10 homes sold in the first three months of the year but prices more than doubled, with a typical property seling for $349,900.

Edgewater had the city’s second-highest price growth, at 50.3 percent, with a typical home selling for $237,000. The neighborhood, known for its abundance of condos, had 149 sales in the first three months of 2016. Hyde Park, Bridgeport, McKinley Park and Gold Coast all had price appreciation at or above 40 percent.

Ukrainian Village, this year’s hottest neighborhood, was the most expensive in the city, with a typical home selling for $579,900. Nearby Bucktown took second place, with a median price of $514,000.

See our city page for the most up-to-date data on Chicago home prices.

Here’s what’s happening in your neighborhood:

Place Median Sale Price Year-Over-Year Homes Sold Year-Over-Year Inventory Year-Over-Year New Listings Median Days on Market Avg Sale-to-List
Albany Park $245,000 6.3% 91 21.3% 145 -5.2% 157 94 96.4%
Andersonville $370,450 -9.1% 30 25.0% 59 -15.7% 72 62 97.0%
Archer Heights $145,554 -12.8% 13 -38.1% 30 50.0% 23 99 100.3%
Austin $88,250 26.1% 112 4.7% 163 -12.4% 159 63.5 101.3%
Avondale $292,500 0.8% 62 -32.6% 110 4.8% 143 68 98.8%
Beverly $238,000 2.4% 44 29.4% 100 -6.5% 82 133 96.8%
Bridgeport $355,000 45.5% 37 -11.9% 84 9.1% 68 69 98.6%
Brighton Park $150,000 15.4% 41 -12.8% 55 -3.5% 61 80 100.3%
Bucktown $514,000 9.2% 71 1.4% 86 -15.7% 126 79 97.3%
Clearing $160,000 18.1% 53 15.2% 93 -10.6% 86 90 97.8%
Edgewater $248,000 50.3% 149 -1.3% 293 -19.1% 304 100.5 96.8%
Edison Park $310,000 10.6% 19 -40.6% 65 14.0% 56 124 96.6%
Englewood $23,000 4.5% 56 -16.4% 192 -13.5% 140 60 92.8%
Evanston $250,000 4.8% 97 42.6% 387 -13.2% 152 82 97.3%
Garfield Ridge $187,157 7.0% 75 -9.6% 134 17.5% 129 97 98.6%
Gold Coast $380,000 40.0% 99 6.4% 257 -11.4% 214 106 94.7%
Humboldt Park $178,000 -24.9% 111 -8.3% 194 9.6% 226 73 100.9%
Hyde Park $194,000 45.9% 45 18.4% 106 -34.2% 89 112.5 95.8%
Irving Park $267,000 6.3% 139 43.3% 184 -11.5% 217 98 96.8%
Jefferson Park $255,000 4.1% 59 0.0% 113 6.6% 132 108 96.3%
Joliet $154,000 19.0% 193 -4.0% 670 -28.5% 302 78 96.6%
Kenwood $170,000 -18.4% 35 2.9% 91 -4.2% 75 99 97.8%
Lakeview $382,200 6.2% 376 10.3% 743 -9.9% 882 92 97.6%
Lakeview / Wrigleyville $383,900 6.6% 377 10.6% 746 -9.9% 886 92 97.6%
Lincoln Park $417,750 1.6% 114 -1.7% 261 8.8% 267 85 96.7%
Lincoln Square $397,000 26.0% 32 -21.9% 115 21.1% 106 142 96.8%
Logan Square $426,500 31.0% 144 10.8% 189 -3.6% 270 74 99.6%
McKinley Park $190,000 40.7% 27 58.8% 28 -15.2% 29 70 99.2%
Montclare $195,000 11.4% 21 -27.6% 34 -42.4% 30 98 97.6%
Mount Greenwood $201,000 26.4% 41 -8.9% 76 33.3% 68 59 98.2%
Naperville $330,000 7.5% 178 4.1% 1,159 3.4% 472 104 97.0%
Near North Side $392,750 -1.8% 496 5.1% 1,095 -4.9% 1,096 88 97.1%
North Center $465,100 10.7% 55 -6.8% 118 -16.3% 128 104 96.9%
Oakland $349,900 125.3% 10 11.1% 24 -25.0% 19 141.5 93.7%
Old Town $375,000 20.5% 64 10.3% 103 -12.0% 130 102 96.5%
Portage Park $269,000 3.9% 131 15.9% 169 -17.6% 183 100.5 98.0%
Pullman $59,500 38.4% 11 -21.4% 20 0.0% 16 51 100.8%
Ravenswood $325,000 -14.6% 45 -19.6% 109 -6.0% 133 83.5 97.6%
River North $412,602 3.1% 180 25.9% 309 2.0% 371 73 98.8%
Rogers Park $166,550 9.2% 96 20.0% 197 -7.5% 174 99.5 97.1%
Roscoe Village $457,500 -5.7% 78 52.9% 138 10.4% 180 104 98.2%
Sauganash $310,000 -11.1% 27 68.8% 54 1.9% 61 112 94.6%
South Lawndale / Little Village $90,500 38.2% 34 -8.1% 54 1.9% 48 68 98.0%
South Loop $315,700 -4.2% 238 33.7% 348 -14.7% 433 83 99.9%
South Shore $60,000 15.3% 67 -16.2% 141 -18.5% 105 100.5 96.4%
Streeterville $420,000 -9.7% 121 -6.2% 322 -11.3% 284 113.5 95.9%
The Loop $305,000 -20.5% 108 -15.6% 258 -11.9% 245 92 98.8%
Tri-taylor $297,451.5 31.2% 16 33.3% 15 -37.5% 11 132 99.6%
Ukrainian Village $579,900 18.1% 23 53.3% 46 2.2% 56 103.5 96.2%
Uptown $245,000 9.9% 139 0.0% 295 -16.9% 341 91 96.6%
Washington Park $50,000 -23.7% 16 0.0% 20 -52.4% 17 100 93.9%
West Loop $367,450 5.0% 112 -23.3% 177 0.6% 282 45.5 100.5%
West Town $449,900 7.6% 295 -2.0% 496 -3.3% 639 79 98.7%
Wicker Park $445,000 2.6% 73 -21.5% 117 -12.7% 155 56 98.8%
Chicago, IL $252,000 12.0% 2,364 -0.4% 11,150 -8.4% 4,622 74 98.3%

For more information, contact Redfin journalist services:
Phone: 206-588-6863
Email: press@redfin.com

See Redfin’s data center to find out what’s happening in other cities.

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