Wednesday, December 21, 2011

Home Sales: The $300,000 divide in West Town

Yesterday we posted the increase of West Town single family home sales this year.  However, as in may Chicago Community Areas, a couple of city blocks or a major arterial street can mean a significant difference in market price of comparable homes. In West Town it's East of Western Avenue vs. West of Western Avenue.

A double lot, modern single family home in West Town (Bucktown neighborhood)

 The $300,000 divide
About 35 single family homes sold west of Western Avenue in the West Town Community Area as of December 21st this year.  The median price was about $350,000. 

About 110 homes sold east of Western Avenue with a median price of about $645,000. This is almost a $300K difference between east and west of Western Avenue.

Two blocks within Western Avenue shrinks the gap to $70K
11 homes sold for a median price of about $440,000  within two blocks west of Western Avenue this year (as of 12/21/11).
18 homes sold within two blocks east of Western Avenue for a median price of about $510,000.
Shops, cafes and bars on West Division Street in West Town (Wicker Park neighborhood)

Comparable new construction single family home prices is in our estimate are 30% to 40% lower just by crossing Western Avenue.  The portions of West Town east and west of Western avenue are roughly the same size.  However, our guess is the land east of Western Avenue has about 20% more housing (developed land).  The western portion of West Town has the huge 207 acre Humbolt Park and a large industrial and Metra train depot that eat up land. The actual build-able land does not really effect the home prices in this comparison.

All photos Eric Rojas and Bob DePalma, Realtors and Brokers. Data gathered on our local MLS, and all analysis and estimates Eric Rojas Realtor and Broker.


Anonymous said...

You didn't mention the area or east & west boundaries in the "$300K difference" estimate. You indicated the gap becomes $70K when it's 2 blocks east or west of Western, but is the $300K gap based on 4 blocks east or west of Western, or what?

Eric Rojas said...

Thanks for the comment. I omitted the word "west" in one of my comparisons.

Homes withing 2 blocks "east" of Western Ave sell for a median price $70K more than homes that sell within two blocks "west" of Western Ave.

In the original post I simply omitted (a typo) the word "west" when stating the median price within 2 blocks west of Western.

I've corrected it.

If you just take east of Western versus west of Western as a whole in West Town the difference in median price is $300K.

Some say the median price is useless when pricing a home for sale. In my opinion, it is one of many factors to use when pricing a home for sale.

I like to state median price comparisons to show neighborhood trends over the years, the cost of housing in specific neighborhoods etc... Median price is helpful to buyers and sellers for any number of reasons.