TCAI Logo-Squished for Insertion in Excel Header

Tracy Cross & Associates, Inc.

4th Quarter 2017

 

 

Production home builders in the ten-county Chicago metropolitan area registered 3,911 new home contracts in 2017 representing a modest drop of 4.4 percent from the 4,093 sales tallied in 2016.  By product type, single family sales of 2,335 were up by 1.2 percent year-over-year while activity in the attached sector, at 1,547, was off by 12.0 percent largely due to slippage in the city of Chicago.  In the city, new construction townhome and condominium sales declined by 17.2 percent year-over-year from 544 in 2016 to 464 in 2017.

New home sales in Chicago’s suburban area totaled 3,447 units in 2017 distributed between 2,329 in the single family sector and 1,118 in the form of duplexes, townhomes, and condominiums.  Compared to sales activity in 2016, suburban single family volumes in 2017 were flat, advancing by only 0.9 percent while those in the attached sector were down by 9.8 percent.

The 3,911 contracts registered in 2017 in the new home production category represented the ninth consecutive year that activity in the Chicago area has failed to climb above 5,000 units.  From a comparative standpoint, sales during the 2009-2017 period averaged only 3,667 on a yearly basis which reflects a drop of 83.5 percent from the 22,278 annual pace set during the entire 16-year prior period (1993-2008).  They also represent an 86.1 percent decline from the 28,219-unit annual average set between the boom years of 2000 through 2006.

For 2017, production sales in the region were led by the Southwestern DuPage County/Aurora/Kendall County submarket with 855 and a 21.9 percent capture rate.  Following this submarket were the Northern Fox Valley and Southwestern Corridor with sales of 661 and 651, respectively.  By finer geographic detail, Naperville, Pingree Grove, Joliet, Elgin, and Aurora represented the leading new home municipalities, each posting 130 or more contracts for the year.  Crossing the 250-unit mark were Pingree Grove with 267 sales and the region’s leading growth area, Naperville, at 380.

Eight publicly-held companies sold the most homes in the region in 2017.  These included CalAtlantic, D.R. Horton, M/I Homes, PulteGroup, K. Hovnanian, Ryan, Taylor Morrison, and Toll Brothers.  Collectively, these builders signed 2,561 contracts during the year representing a 65.4 percent share of market.  Leading the market were CalAtlantic with 587 contracts, D.R. Horton at 526, and M/I Homes and the PulteGroup with respective volumes of 468 and 441.

A total of 29 individual developments recorded 30 or more sales in 2017 including three highrise condominium communities in the city, along with 17 single family and nine townhome/duplex programs in the suburbs.  Magellan’s Vista development in the Loop with 61 contract signings was the leader in the city followed by Illume in the Near West Side and 1000M also in the Loop with 36 and 32 sales, respectively.  In Chicago’s suburban area, the PulteGroup’s Atwater-Springs and Deerbrook single family developments posted over 50 sales for the year as did D.R. Horton’s age-qualified Carillon at Cambridge Lakes-Resort single family series in Pingree Grove.  Suburban attached sector sales leaders for the year included D.R. Horton’s Cambridge Lakes-Seaboard series also in Pingree Grove, CalAtlantic’s Lake Street Square-Urban product line in Grayslake, and M/I Homes’ Sagebrook development in Lockport.  Each of these three townhome communities registered 40 or more sales.

 

Post comment

Tracy Cross & Associates, Inc.

1920 N. Thoreau Drive
Suite 150
Schaumburg, Illinois
60173 - 4174
Phone: 847 - 925 - 5400
Fax: 847 - 925 - 5415
Email: Info@tcrossinc.com

Social Media

Recent Posts

Archives