Saturday, June 9, 2018

Chicago Housing Market Encounters Linear Drop in Price

(Click on the image to enlarge)

After a steady growth in prices for several months and peaking in May/June-17, Chicago housing market has been spiraling down. The fact that the monthly median has declined from $250K to $200K in mere eight months is statistically very significant. In fact, if this trend does not reverse itself in (coming) summer months, the term 'significant' will quickly change to 'free fall.' Sadly, both trendlines are confirming the decline, creating a party line. 

The normalized trend (bottom graph) is in tandem as well, exhibiting a linear drop from $205/SF to $170/SF. The trendlines are not helping either.

Hey Chicago: you need a quick trend reversal to remain healthy!

Note - This analysis covers City of Chicago, not entire Cook County.

- Sid Som, MBA, MIM
President, Homequant, Inc.

homequant@gmail.com

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