By Jim Kinney

The total number of sales in Chicago for single family homes and condos were down 25% for the first seven months of 2008 versus the same period in 2007.  As a silver lining, the average sale price has climbed 7% to $378,618 for the same period.  The weaker market in 2008 is further underlined by the fact that there are currently 26,310 properties listed in the MLS as available, an almost 11 month supply based upon the absorption rate for 2007.

It is interesting to see how the various areas downtown have been affected.  The traditional Gold Coast/Streeterville area was down 14% in actual sales but saw an 11% increase in average sales price.

Lincoln Park took it on the chin more than any other area with actual unit sales down by over 35% but still garnering an almost 12% increase in average sale price to $631,963.

Lakeview faired little better with a 21% decline in actual sales and a more modest average price increase of 7.6% to $430,794.

The bright spots were in the Loop and South Loop areas, reflecting the delivery of several larger projects in this period.

The Loop area registered a sizeable 30% increase in closed homes and a whopping 46.5% increase in average sale price to $581,874!

The Near South Side area saw the largest increase, 47.5% in units, with an average sales price increase of 22.8% to $487,983.

It was in August of last year that the subprime mortgage problem started to accelerate and the downturn began.  It will be interesting to see if the remaining months of 2008 can begin to show improvements in the Chicago housing market. If not, we may be looking to 2009 for signs of a better market.