Average home price hits $1 million along lakefront The lure of lakefront
breezes has had an uplifting effect on resale home prices in four
key Chicago lakefront neighborhoods, boosting the average sale price
above $1 million for the first time, according to a new study. The average price
of the 125 single-family homes sold during the second quarter in the
four neighborhoods – the Near North Side, Lincoln Park, Lakeview
and Uptown – was $1,032,760, according to Sudler’s Lakefront
Market Report. That compares
with an average price of $953,610 during the same quarter last year,
an 8.3 percent increase. The average price was $831,776 during the
first quarter of this year. The average home
sale price ranged from highs of $1,504,666 on the Near North Side
and $1,188,985 in Lincoln Park to $806,000 in Lakeview and $652,317
in Uptown. However, sellers
are taking more time to get those prices. The average market time
for selling a single-family rose to 70 days from 47, an increase of
49 percent. A year earlier, average market time was 52 days. Though the single-family
average in these premium neighborhoods has passed $1 million, condo
and co-op prices have dropped slightly. The overall numbers actually
reflect a market moderating after large increases in recent years,
said Jeanine McShea, president of Sudler’s residential brokerage
division. “As dramatic
as it may be to say that the average price of a single-family home
has passed the $1 million mark, what we are really seeing is a solid
market in which upward pressure on prices is subsiding thanks largely
to the steady supply of new construction and a more cautious attitude
on the part of buyers,” McShea said. “…The gain pales
in comparison to the 18.6 percent increase we saw in the second quarter
last year and the 38.7 percent gain recorded in 2000.” The average sales
price for a condominium or co-op unit was $324,580 for the quarter,
down 1.5 percent from the $329,710 average for the second quarter
of 2001 and off 1.2 percent from the $328,603 average price during
the first quarter of 2002. The average market
time for condominiums and co-ops held steady at 44 days when compared
to the prior quarter, according to the survey. In the second quarter
of last year, average market time was 45 days. The Sudler Lakefront
Market Report analyzes all transactions reported by the Multiple Listing
Service of Northern Illinois (MLSNI) involving single-family houses,
condominiums and cooperatives in five Chicago neighborhoods –
the Loop, the Near North Side, Lincoln Park, Lakeview and Uptown.
The MLSNI data includes many but not all new residential developments
and is best viewed as a gauge of the market for existing homes. The level of market
activity, documented by the number of transactions closed during the
period, also presented a mixed picture. Activity in the condominium
and co-op segment was up strongly, both for the quarter (15.7 percent)
and the first half (19.6 percent) when compared to 2001. However, single-family
home activity was more restrained. Transactions were up 4 percent
during the first half of 2002, but down 9.1 percent in the second
quarter. “The large
number of new condominium units coming onto the market this year is
certainly a factor in generating those numbers,” said McShea.
“In many instances you are looking at sales that are closing
now that the buildings are completed even though contracts were signed
last year.” Overall, Lincoln
Park turned in the strongest second quarter performance of any lakefront
community, with single-family sales up 13.2 percent and condo sales
up 14.7 percent. “Homes in
Lincoln Park are viewed as incredibly solid investments, which is
why prices keep rising and market times remain lower than other neighborhoods,”
said McShea. “The limited opportunities for new development also
play a role.” As for other neighborhoods,
condominium sales were strong across the board, especially in the
Loop, where they were up about 50 percent for the quarter. In the single-family
market, Lakeview experienced a noticeable decline in activity, with
just 50 sales closed during the quarter compared to 62 in the same
quarter last year. However, the average price of a single-family home
in Lakeview rose to $806,000, up from $636,123 for the year-earlier
period, an increase of 21.1 percent. |