Which Chicago Neighborhoods and Suburbs Struggled With 2017 Home Sales?
The five areas with slow 2017 home sales include:
- Burr Ridge. Burr Ridge, located in both Cook and DuPage counties, had an average market time of 218 days, according to the report.
- Kenilworth. The northern suburb of Kenilworth had an average market time of 219 days, according to the report.
- Kenwood. Homes in the South Side neighborhood of Kenwood spent an average of 208 days on the market, according to the report.
- Near North. Homes in the Near North neighborhood of Chicago had the longest wait for sellers with an average market time of 314 days, according to the report.
- Wayne. A village in DuPage and Kane counties, Wayne had an average market time of 218 days, according to the report.
These five areas lagged considerably behind the overall Chicagoland market. The average overall market time in 2017 was three months, Crain’s reports. This lines up with another study done by Owners.com, which found that Chicago homes spent an average of 108 days on the market, as of Oct. 31, 2017. The same study named the city one of the country’s top buyers’ markets.
The Crain’s article suggests that these five areas had slow sales because they are luxury markets. For example, the median sale price of homes in the Near North last year was $1.87 million. The median sale price of Kenilworth homes was $1.2 million, according to the report. The median sales prices in Burr Ridge, Kenwood, and Wayne were lower, but still well above the region’s median home price of $225,000, according to the report.
In addition to high prices, many of the homes in these five areas are older. Many buyers are looking for homes that do not require significant repairs or upkeep, Crain’s reports. Instead, buyers are looking for homes that are ready to be lived in without requiring a lot of work. For example, buyers in the Gold Coast area of the larger Near North area are forgoing older condos for new construction, according to the report.
On the other hand, neighborhoods with a high number of foreclosures and properties in need of rehab had some of the lowest average market times. For example, Chicago neighborhood Archer Heights had an average market time of 51 days, and suburb Dixmoor had an average market time of 32 days, according to the report. Investors are purchasing foreclosures and properties in disrepair in order to flip them. Some of the rehabbed homes are put back on the market for sale or they are rented out, according to the report.