MARKET SNAPSHOT – CITY OF CHICAGO
*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®.
- 3,146 properties were sold in the City of Chicago in June 2018. This is a 6.9 percent decrease from June 2017.
- The median sales price in the City of Chicago for June 2018 was $315,000, up 2.6 percent from this time last year.
- The City of Chicago saw listings average 62 days on the market until contract, a 1.6 percent increase from 61 days in June 2017.
STATE OF THE MARKET
- Housing markets across the nation are most assuredly active this summer, and buyer competition is manifesting itself into several quick sales above asking price. While the strength of the U.S. economy has helped purchase offers pile up, the Fed recently increased the federal funds rate by 0.25 percent, marking the second rate hike this year and seventh since late 2015. Although the 30-year mortgage rate did not increase, buyers often react by locking in at the current rate ahead of assumed higher rates later. When this happens, accelerated price increases are possible, causing further strain on affordability.
- Inventory may be persistently lower in year-over-year comparisons, and home prices are still more likely to rise than not, but sales and new listings may finish the summer on the upswing. The housing supply outlook in several markets is beginning to show an increase in new construction and a move by builders away from overstocked rental units to new developments for sale. These are encouraging signs in an already healthy marketplace.
- “The spring market has carried its upwards climb into summer with median sales price hitting a five-year high,” Rebecca Thomson, president of the Chicago Association of REALTORS® and principal of Thomson Real Estate Group, said. “The increasingly limited inventory makes for a competitive market with faster sales and increasing prices. Buyers are entering a competitive market where turn-key homes are in high demand. Sellers need to stage and price strategically as the overall number of closed sales continues to shrink.”
- City of Chicago inventory is down 6.0 percent, from 9,665 homes in June 2017, to 9,086 homes in June 2018.
- The month’s supply of inventory is down 7.3 percent, from 4.1 in June 2017 to 3.8 in June 2018 in the City of Chicago.