*The City of Chicago Market Snapshot represents the residential real estate activity within the 77 officially defined Chicago community areas as provided by the Chicago Association of REALTORS®.
2,804 properties were sold in the City of Chicago in June 2019. This is a 12.1 percent decrease from June 2018.
The median sales price in the City of Chicago for June 2019 was $319,450, up 1.4 percent from this time last year.
The City of Chicago saw listings an average 67 days on the market until contract, a 8.1 percent increase from 62 days in June 2018.
STATE OF THE MARKET
As was widely expected, the Federal Reserve did not change the target range for the federal funds rate – currently set at 2.25 to 2.5 percent – during their June meeting. Although the economy is still performing well due to factors such as low unemployment and solid retail sales, uncertainty remains regarding trade tensions, slowed manufacturing and meek business investments.
In terms of relative balance between buyer and seller interests, residential real estate markets across the country are performing well within an economic expansion that will become the longest in U.S. history in July. However, there are signs of a slowing economy. The Federal Reserve considers 2.0 percent a healthy inflation rate, but the U.S. is expected to remain below that this year. The Fed has received pressure from the White House to cut rates in order to spur further economic activity, and the possibility of a rate reduction in 2019 is definitely in play following a string of increases over the last several years.
“We can’t escape the topic of tax increases right now, and prospective buyers are paying attention,” Tommy Choi, president of the Chicago Association of REALTORS® and broker at Keller Williams Chicago – Lincoln Park, said. “High assessments in the north, and tax increases expected in 2021, has made some leery. Still, the summer proves to still be an active time for the Chicago housing market: for buyers, rates remain low and market time and inventory has increased, meaning there is more choice and more time to make key decisions. For sellers, prices remain relatively steady, and pricing appropriately is key.”
The City of Chicago’s inventory is up 0.9 percent, from 9,585 homes in June 2018 to 9,676 homes in June 2019.
The month’s supply of inventory is up 4.9 percent, from 4.1 in June 2018 to 4.3 in June 2019.
Anne Rodia GRI
KoenigRubloff Realty Group980 N. Michigan Ave., Suite 700 , Chicago,IL60611