By Mary Corrado
Associate EditorActivity in the single-family-home real estate market was uneven during the first quarter of 2002, with substantial sales volume declines in Near North (down 74 percent) and Uptown (down 38.3 percent), while Lincoln Park (up 53 percent) enjoyed a large increase, and Lake View achieved a small gain (4.4 percent). In fact, Lincoln Park accounted for 67.9 percent of all single-family sales volume in a five neighborhood survey, with more homes sold in Lincoln Park (44) than in Lake View, Uptown, the Loop and Near North combined (37).
Led by a continued upsurge in condominium and cooperative sales, Chicago’s lakefront housing market enjoyed a buoyant first quarter, according to the Lakefront Market Survey, a quarterly analysis by Sudler. Total sales volume for residential properties in the market rose 27.8 percent when compared to the same quarter of 2001, reaching $554.3 million.
The average price of a residence sold during the first quarter rose slightly for condos and co-ops but declined minimally for single-family homes when compared to the first quarter of last year. The average condo/co-op price during the quarter was $328,603, up 3 percent from a year ago. The average single-family transaction was $831,776, down 2.1 percent from the January-March period of 2001.
The Sudler Lakefront Market Survey looks at all transactions reported by the Multiple Listing Service of Northern Illinois (MLSNI) involving single-family homes, condominiums and cooperatives in five Chicago neighborhoods: the Loop, Near North, Lincoln Park, Lake View and Uptown. The MLSNI data does not include all new residential developments and is best viewed as a gauge of the market for existing homes.
Single-family homes: Lincoln Park accounted for 67.9 percent of all single-family sales volume and more than half (44 of 81) of the single-family homes sold. In Lincoln Park, the number of transactions was up 57 percent from the comparable period last year, and the average market time for a single-family residence declined 36 percent form 80 days during the first quarter of 2001 to 61 days during the same period this year.
Overall, single-family home activity was brisk, with total transactions up 19 percent to 81 sales and the average market time down 26 percent to 47 days.
“Lincoln Park is obviously the heart of the lakefront single-family market, and demand there remains exceptionally strong. However, there are signs of moderation,” noted Jeanine McShea, executive vice president for Sudler. “The average home price for the quarter actually declined 2.5 percent in Lincoln Park this year, to $1.03 million from $1.06 million a year ago. That is a function of the specific properties available and demonstrates that buyers, while still eager, are also careful shoppers.”
Condos and cooperatives: Except for a tiny decline in Lake View, condominium and cooperative transaction volume was up in every neighborhood covered by the Sudler Lakefront Market Report. Total transactions rose 25.7 percent to 1,482 from 1,179 a year ago. Sales volume rose across the board, reaching $487 million, a gain of 29.5 percent over the $376 million in sales recorded a year earlier.
The largest increase in activity was in the Near North area, which experienced a 56.4 percent increase in sales volume and a 56 percent gain in transaction volume. The Near North area accounted for roughly half of all sales volume in the condo/co-op category during the quarter.
Average market time for condo/co-op properties essentially held steady, declining from 45 days last year to 44 days this year. However, that total includes a significant reduction in average market time in Lake View (down from 68 to 46 days) and a notable increase in Uptown (up from 38 days to 51 days). Among the three other neighborhoods, the Loop and Lincoln Park saw market times rise slightly, while in the Near North area the average fell by three days.
“This is looking like a very healthy market place right now, with a good balance between supply and demand,” said McShea. “It’s good to see that, while we still are seeing steady price appreciation, the pace of increase has come down substantially. For example, a year ago single-family prices were up 11.5 percent when compared to the first quarter of 2000, and condo/co-op prices were up an average of 3.5 percent.
“From what we are seeing to date, I’d say the spring of 2002 will be a much more pleasant experience for buyers than was the case last year. At the same time, sellers should do quite well if they price their homes realistically,” she said.
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