A LOOK INTO STREETERVILLE LUXURY REAL ESTATE INVENTORY
Bordered by Michigan Avenue, Lake Michigan and the Chicago River, the Streeterville Luxury Real Estate market is off to blazing starts this year. Home to luxury condominium projects such as 600. Fairbanks this downtown Chicago neighborhood has seen tremendous reduction in available inventory.
Months Supply of Inventory, (MSI) is one of the key indicators to the health of a local real estate market. This number essentially tells how many months it would take for all currently listed homes (ACTIVE) to sell based on the number of homes selling (going off market) for that month. Typically, 4-5 months is considered a healthy or normal market with regards to inventory. A higher MSI indicates that there are more sellers on the market than buyers and vice versa.
Months Supply of Inventory, (MSI), can be calculated by dividing the total number of homes for sale over the number of homes sold in one month. The Streeterville community has made significant strides in reducing inventory over previous years as demonstrated in the charts below.
NOTE: The charts below indicate the Streeterville Luxury Real Estate condo market by quartile. Click on the images to download a larger resolution file.
Chicago – Streeterville Neighborhood Months Supply of Inventory – May 2014
You’ll see in our second chart that January 2010 represented the highest MSI over the past 6 years, recorded at nearly 27 months supply of inventory. High inventory rates were especially common in “luxury” price points such as Streeterville condos mentioned above, however we have seen these drastically reduce over the last three years.
Chicago – Streeterville Historical Months Supply of Inventory – May 2014
In the Spring of 2014 we have witnessed the lowest available inventory rates in a decade for many desirable Chicago neighborhoods due to attractive financing, limited delivery of new construction and still-affordable pricing of high-end units. April numbers have just been released and are hovering closely around 6 months supply for all condo price points.
This limited inventory and a strong pool of ready buyers, (for attractively priced units), has inspired home prices for Streeterville luxury real estate to steadily increase – however at a much more reasonable pace versus 2005-2006. Stay tuned for our next update on the Streeterville real estate market where we’ll discuss where these prices are headed and how you as a consumer can take advantage of them.
Don’t hesitate to reach out to us with any questions you may have concerning your local market.