P R E S E N T A T I O N

Tracking recent housing market trends in Greater Chatham

Presented by the Institute for Housing Studies

April 25, 2019

Quarterly Single Family House Price Changes in City of Chicago Neighborhoods, 1997 to 2018

2

The market recovery in select south side submarkets

SOURCE: IHS SINGLE FAMILY HOUSE PRICE INDEX

0

50

100

150

200

250

300

Auburn Gresham, Avalon Park, Chatham

Roseland, West Pullman

Englewood, West Englewood, Greater Grand Crossing, South Shore, Woodlawn, South Chicago

City of Chicago

100 = INDEX VALUE IN 2000

3

•Single family sales activity increased faster in the GCI area than in the

City of Chicago overall

•Property sales in Chatham and Avalon Park had the highest values, but prices

remained flat or declined slighted from 2017 to 2018

•Greater Grand Crossing had largest increases in SF sales and median prices,

but prices remained the lowest in the GCI area

•Flipping activity slowed, but values of likely flips increased

•Dwindling REO inventory means that more properties are being

purchased directly from foreclosure auction

•Prices and price increases in the GCI area are generally comparable to

south side peers

Single Family Market Overview

Annual Single Family Property Sales in GCI Community Areas, 2015 to 2018

Single Family Sales Activity in Greater Chatham has increased

4

333

100

199

157

376

152

230

169

438

184

287

196

479

196

245262

0

100

200

300

400

500

600

Auburn Gresham Avalon Park Chatham Greater Grand Crossing

2015 2016 2017 2018

Annual Median Sales Price for Single Family Homes in GCI Community Areas, 2015 to 2018

Detail on SF market – Median Sales Price

5

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

Auburn Gresham Avalon Park Chatham Greater Grand Crossing

2015 2016 2017 2018

Share of SF Sales in GCI area by Price Tier, 2015 to 2018

SF Prices Recover to Higher Price Points

6

44.9%

39.2%

30.6%

27.2%

22.8%

23.5%

29.1%

33.6%

11.9%

10.5%

13.8%

11.8%

16.3%

19.8%

17.0%

15.3%

4.1%

7.0%

9.4%

12.1%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2015

2016

2017

2018

Less than $50K $50K to $100K $100K to $150K $150K to $200K More than $200K

7

Single-Family Sales, 2015

SOURCE: IHS COOK COUNTY HOUSE PRICE INDEX 2016 4Q

8

Single-Family Sales, 2018

SOURCE: IHS COOK COUNTY HOUSE PRICE INDEX 2016 4Q

Ratio of Annual Median SF Sales Price in Greater Chatham compared to South Side Peer Neighborhoods

SF Prices in Greater Chatham Remain Comparable to Peers

9

0%

20%

40%

60%

80%

100%

120%

140%

Auburn Gresham Avalon Park Chatham Greater Grand Crossing

2015 2016 2017 2018

1 0

•Between 2017 and 2018, 2-4 unit building sales activity increased at

much faster rates in the GCI area than in the City of Chicago overall

•Greater Grand Crossing had substantial increases in 2-4 unit building

sales and median prices

•All GCI community areas have seen steady increases in the share of

higher value sales

•Prices and price increases in the GCI area are generally comparable to

south side peers, seeing recovery compared to City benchmark

2-4 Market Overview

Annual 2-4 Unit Property Sales in GCI Community Areas, 2015 to 2018

2-4 Unit Sales Activity in Greater Chatham has increased

1 1

96

3

72

110

154

21

92

160162

18

89

145

176

14

82

185

0

20

40

60

80

100

120

140

160

180

200

Auburn Gresham Avalon Park Chatham Greater Grand Crossing

2015 2016 2017 2018

Annual Median Sales Price for 2-4 Unit Properties in GCI Community Areas, 2015 to 2018

2-4 Unit Prices in Greater Chatham have Steadily Increased

1 2

$0

$50,000

$100,000

$150,000

$200,000

$250,000

Auburn Gresham Avalon Park Chatham Greater Grand Crossing

2015 2016 2017 2018

Share of Sales by Price Tier in GCI Area, 2015 to 2018

GCI Area Sees Strong Growth in Higher Value 2-4 Sales

1 3

40.2%

30.0%

20.8%

16.0%

27.4%

27.2%

28.3%

28.0%

9.6%

10.5%

13.3%

16.2%

15.7%

21.3%

18.1%

14.7%

7.1%

11.0%

19.6%

25.2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2015

2016

2017

2018

Less than $50K $50K to $100K $100K to $150K $150K to $200K More than $200K

1 4

Two-to-Four Sales, 2015

SOURCE: IHS COOK COUNTY HOUSE PRICE INDEX 2016 4Q

1 5

Two-to-Four Sales, 2018

SOURCE: IHS COOK COUNTY HOUSE PRICE INDEX 2016 4Q

Ratio of Annual Median 2-4 Sales Prices in Greater Chatham compared to South Side Peer Neighborhoods

2-4 Unit Prices in Greater Chatham Remain Comparable to Peers

1 6

0%

50%

100%

150%

200%

250%

Auburn Gresham Avalon Park Chatham Greater Grand Crossing

2015 2016 2017 2018

Ratio of Annual Median 2-4 Sales Prices in Greater Chatham compared to City of Chicago

2-4 Unit Prices in Greater Chatham Undervalued compared to City

1 7

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Auburn Gresham Avalon Park Chatham Greater Grand Crossing

2015 2016 2017 2018

1 8

•Overall levels of 5+ unit building sales decreased between 2017 and

2018

•However, value of sales and price per unit of sales increased

5+ Market Overview

1 9

Five-Plus Sales, 2015

SOURCE: IHS COOK COUNTY HOUSE PRICE INDEX 2016 4Q

20

Five-Plus Sales, 2018

SOURCE: IHS COOK COUNTY HOUSE PRICE INDEX 2016 4Q

Tracking recent housing market trends in Greater Chatham

Presented by the Institute for Housing Studies

© 2 0 1 9 I N S T I T U T E O F H O U S I N G S T U D I E S AT D E PA U L U N I V E R S I T Y

April 25, 2019

housingstudies.org @housingstudies Contact: gsmith33@depaul.edu