Chicago home sales in suburbs served by Metra commuter trains have declined less sharply than suburban Chicago homes as a whole, but those homes aren’t selling any more quickly, according to an analysis of recent sales by RE/MAX. The analysis looked at three factors: the number of homes sold, the average number of days those homes spent on the market and the average sales price.
“Given the recent focus on gasoline prices and the nationwide decline in auto usage that has been reported, we were curious to see if homes in towns with a Metra station were selling more briskly than those in the Chicago suburbs real estate in general,” said Jim Merrion, regional director of the RE/MAX network in northern Illinois. “The results we obtained suggest that the differences between home sales in Metra-served communities and sales in other suburbs aren’t dramatic.
The RE/MAX analysis looked at homes sales in three towns along each of the 11 Metra corridors throughout the Chicago suburbs. Sales results for the first half of 2008 and 2006 were compared.
Sales Volume
Although the number of homes sold in Metra-served towns and those in the entire suburban area both declined significantly from 2006 to 2008, the decline was 3.2 percent less in the Metra towns, according to the RE/MAX analysis.
The Metra communities saw total home sales fall 43.1 percent during the first six months of this year when compared to the same period two years earlier. On the same basis, the number of homes sold in suburban Cook, DuPage, Kane, Kendall, Lake, McHenry and Will counties declined 46.3 percent, giving the Metra communities a 3 percent advantage.
The RE/MAX analysis also looked at the selected Metra towns based on their distance from downtown Chicago, grouping them into three categories – towns close to the city, those close to the end of the Metra line and towns in the middle.
Mid-distant communities showed the best results over the two-year span from 2006 to 2008, with the number of homes sold falling 39 percent compared to a 46 percent reduction in total sales for all suburban communities. The most distant Metra towns slightly outperformed the total suburban market, registering a 43 percent decline in homes sold. However, those Metra towns closest to the city saw sales fall off 55 percent, or 8.7 percent more than the suburbs as a whole.
Of all the Metra corridors considered in the analysis, the strongest result in terms of sales volume was for the BNSF (Burlington Northern-Santa Fe) service to the western suburbs. In three towns along that line, Riverside, Western Springs and Lisle, home sales declined 31.8 percent over two years. That was the smallest decrease experienced along any of the lines and much lower than the 46.3 percent dip in volume for the entire suburban area during the same period.
Average Market Time
Average market time needed to sell a home in the Metra towns rose from 88 days in 2006 to 165 days in 2008, and the two-year change was nearly identical for all suburbs, increasing from 84 days in 2006 to 162 days this year.
Average market times varied only slightly when the Metra towns were grouped according to distance from the city, and each of the three groups had a slightly longer average market time for the first half of 2008 than the 162-day average recorded for the suburbs as a whole. Among the towns served by Metra, those closest to the city had an average market time of 167 days. Towns in the mid-distant group averaged 165 days, while the most distant group averaged 164 days.
Average Sales Price
When it came to changes in the average price of a home, the Metra towns saw a 2.7 percent decline from 2006 to 2008, while the suburbs as a whole experienced an increase of 1 percent over that two-year span.
The best price performance among Metra corridors was along the Union Pacific North Line where the average price of homes sold in Evanston, Winnetka and Lake Bluff rose 4.8 percent from 2006 to 2008. The steepest price decline was along the Metra Electric line in the south suburbs where the average price of a home sold in the communities of Harvey, Flossmoor and University Park fell 24.3 percent.
“It will be interesting to see if the increased public attention to energy issues translates into stronger sales in communities served by public transit in the years ahead,” said Merrion. “At this point, the differences are minimal, but we plan to keep and eye on the situation and see how it evolves.”
Jan – June 2008 & 2006
| | 2008 Homes Sold | 2006 Homes Sold | % Change | 2008 Avg. Market Time | 2006 Avg. Market Time | % Change |
| 23,164 | 43,169 | -46.30% | 162 days | 84 days | 93% | |
| 11 Metra Towns Most Distant from | 1,538 | 2,686 | -43/% | 164 days | 89 days | 84.30% |
| 11 Metra Towns Mid-Distant from | 1,326 | 2,186 | -39.30% | 165 days | 87 days | 89.70% |
| 11 Metra Towns Closest to | 1,142 | 2,077 | -55% | 167 days | 87 days | 92% |
| Totals for 33 Metra Towns | 3,962 | 6,960 | -43.10% | 165 days | 88 days | 87.50% |
*Chicago suburbs are defined as communities of Cook, DuPage, Kane, Kendall, Lake, McHenry and Will and excludes the city of Chicago.
Data is compiled by RE/MAX Northern Illinois from the Midwest Real Estate Data Exchange (MRED).
