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®.
- 1,327 properties were sold in the City of Chicago in January 2019. This is a 8.1 percent decrease from January 2018.
- The median sales price in the City of Chicago for January 2019 was $252,500, down 4.7 percent from this time last year.
- The City of Chicago saw listings average 100 days on the market until contract, a 8.7 percent increase from 92 days in January 2018.
STATE OF THE MARKET
- Despite a strong U.S. economy, historically low unemployment and steady wage growth, home sales began to slow across the nation late last year. Blame was given to a combination of high prices and a steady stream of interest rate hikes by the Federal Reserve. This month, the Fed responded to the growing affordability conundrum. In a move described as a patient approach to further rate changes, the Fed did not increase rates during January 2019.
- While the home affordability topic will continue to set the tone for the 2019 housing market, early signs point to an improving inventory situation, including in several markets that are beginning to show regular year-over-year percentage increases. As motivated sellers attempt to get a jump on annual goals, many new listings enter the market immediately after the turn of a calendar year. If home price appreciation falls more in line with wage growth, and rates can hold firm, consumer confidence and affordability are likely to improve.
- “Consumer confidence throughout the United States declined in December and January, due to the government shutdown, the slowing rate of job growth and overall uncertainty about the direction of the economy, resulting in declines in closed sales for January,” Tommy Choi, president of the Chicago Association of REALTORS® and broker at Keller Williams Chicago – Lincoln Park, said. “Sellers responded by lowering prices slightly to incentivize cautious buyers, who are regaining some power. The slower market is not a cause for concern, as market changes are a natural part of the real estate cycle.”
- City of Chicago inventory is down 2.9 percent, from 7,467 homes in January 2018 to 7,247 homes in January 2019.
- The month’s supply of inventory increased 3.2 percent in January 2019, when compared to January 2018.