Several neighborhoods that had seen a steep decline in median selling prices in recent quarters saw an equally steep rise last quarter. The effect was present mostly in single-family homes. Three examples are Near South Side, Edgewater and Rogers Park.
The median selling prices of Near South Side houses had fallen 44% between Q3 2011 and Q2 2012, but jumped back up 52% in just one quarter.
In Edgewater, median prices fell an astounding 59% from Q2 2011 to Q2 2012. Last quarter, they jumped up over 100%.
Median prices in Rogers Park fell 68% from Q4 2010 to Q2 2012. In the last two quarters, they’ve risen a total of 243%.
Sales these days are volatile. Distressed sales and other unusual circumstances cause the median selling price to jump around, especially in places that are less stable. We all know the median selling price is riddled with biases that don’t indicate how any individual house value has changed. Still, in the absence of a robust index, the median prices by neighborhood show the activity that buyers, real estate agents, and appraisers see.
More detail on recent price trends can be found at Lakeshore Analytics.
Jeff Baird is a real estate valuation consultant based in Chicago. He founded Lakeshore Analytics to bring comprehensive, understandable housing data and analysis to Chicago-area readers. The site features a blog with free market news and charts, summary data on 20 top neighborhoods, and quarterly data subscriptions.