Market Conditions: How Low Will Chicago Inventory Go?
It’s December in Chicago. This is a slow month for real estate in Chicago.
Many homeowners are waiting to sell in the spring market which now begins in early January. They are enjoying the holidays with family and friends and don’t want their home life disrupted by home buyers.
But there is slow, and there is SLOW.
Inventory in Chicago, which is always light in December, has gotten even lighter.
Here are some numbers from Redfin as of Dec 8, 2024 in popular neighborhoods. These are properties currently listed for sale (not under contract or pending sales).
- Lincoln Park: 120 properties
- Lakeview: 218
- West Town: 222
- Bucktown: 47
- River North: 262
- Streeterville: 272
- West Loop: 129
- Loop: 277
- Gold Coast: 159
- Hyde Park: 82
- Andersonville: 15
- North Center: 45
- Lincoln Square: 49
A reminder that developers usually do not list all of the available condos in a large buildings on the MLS, so these numbers do not reflect ALL that is available. For instance, the Tribune Tower is not sold out but all of the available units are not on the MLS. They are not reflected in the Streeterville numbers.
But with no new condo towers currently under construction downtown, even the new construction inventory is limited to just a few high rises.
Will inventory drop further before the spring selling season starts?
And what does this mean for Chicago pricing in 2025?
Too many people chasing too few properties
Curious how 2nd tier hoods are faring (SL, Bronzeville, etc)
“Curious how 2nd tier hoods are faring (SL, Bronzeville, etc)”
For many of the listed hoods, those invenotry numbers are about 1-1.5 months of sales (last 3, 6, 12 months average). A’ville is more like 2-3 weeks. Hyde Park and West Loop are more like 3 months. Loop is more like 4 months.
Bronzeville is about 3 months. So is SL.
“For many of the listed hoods, those invenotry numbers are about 1-1.5 months of sales (last 3, 6, 12 months average). A’ville is more like 2-3 weeks. Hyde Park and West Loop are more like 3 months. Loop is more like 4 months.
Bronzeville is about 3 months. So is SL.”
Thanks and kinda what I was thinking. Guessing that most buyers aren’t willing to accept the risk premium for those hoods
“Thanks and kinda what I was thinking. Guessing that most buyers aren’t willing to accept the risk premium for those hoods”
So 3 months inventory is a “risk premium”?
Lol.
Yet you were the one crowing about how buyers would flock to 2nd tier neighborhoods when priced out of 1st tier.
If your thesis was correct these neighborhoods should have lower inventory, because people want to live
“Yet you were the one crowing about how buyers would flock to 2nd tier neighborhoods when priced out of 1st tier.
If your thesis was correct these neighborhoods should have lower inventory, because people want to live”
Yes. That’s why Bronzeville is seeing the largest price appreciation. People are priced out of Kenwood and Hyde Park and looking for an alternative. The Gap has also gone up a lot in price the last 5 years.
Inventory is at record lows citywide. Just 64 homes on the market in Kenwood. Just 6 properties in The Gap/Douglas. North Kenwood has 20 homes.
You really don’t have many options. But you can’t look in the suburbs either. Just 68 homes on the market in Oak Park.
1. An area undergoing gentrification is going to see larger price appreciation Vs established neighborhoods. It also has nothing to do with what’s being discussed
2. People priced out of T1 neighborhoods are looking for alternatives, but based n the data B’ville ain’t it
“2. People priced out of T1 neighborhoods are looking for alternatives, but based n the data B’ville ain’t it”
Of course they are going to Bronzeville. If you’re priced out of your chosen neighborhood like Kenwood, you go to others. That’s why Bronzeville prices have gone up dramatically and they are now building $750k to $850k homes there. Woodlawn is also seeing those priced out of Hyde Park.
The hot neighborhood may be south though. South Shore just saw a home sell for a record for the neighborhood, over $1 million. It WAS completely renovated.
While I don’t want to see South Shore become a million dollar neighborhood, the housing stock is wonderful and is due for a bounce back.
Inventory continues to go down as no one is listing with the holidays.
I have NEVER seen it like this.
Updated inventory numbers:
Lincoln Park: 101 properties
Lake View: 180 properties
Bucktown: 37 properties
Andersonville: 10 properties
River North: 232 properties
West Loop: 102 properties
It will be unbelievable if Lincoln Park drops below 100 properties.