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®.
- 2,317 properties were sold in the City of Chicago in March 2018. This is a 9.0 percent decrease from March 2017.
- The median sales price in the City of Chicago for March 2018 was $312,000, up 5.8 percent from this time last year.
- The City of Chicago saw listings average 97 days on the market until contract, a 2.1 percent increase from 95 days in March 2017.
STATE OF THE MARKET
- New residential real estate activity has been relatively slow in the first quarter of 2018, yet housing is proving its resiliency in a consistently improving economy. Some markets have had increases in signed contracts, but the vast majority of the nation continues to experience fewer closed sales and lower inventory compared to last year at this time. Despite there being fewer homes for sale, buyer demand has remained strong enough to keep prices on the rise, which should continue for the foreseeable future.
- The Federal Reserve raised its key short-term interest rate by .25 percent in March, citing concerns about inflation. It is the sixth rate increase by the Fed since December 2015, and at least two more rate increases are expected this year. Borrowing money will be more expensive, particularly for home equity loans, credit cards and adjustable rate mortgages, but rising wages and a low national unemployment rate that has been at 4.1 percent for five months in a row would seem to indicate that we are prepared for this. And although mortgage rates have risen to their highest point in four years, they have been quite low for several years.
- “Limited supply and high demand took center stage for the start of Chicago spring housing market,” Rebecca Thomson, president of the Chicago Association of REALTORS® and principal of Thomson Real Estate Group, said. “While the number of closed sales slowed in tandem with the inventory crunch, the rise in median sales price and reduction of time it takes for a home to sell on average points to competition for well-priced homes in good condition.”
- City of Chicago inventory is down 9.2 percent, from 8,551 homes in March 2017, to 7,766 homes in March 2018.
- The month’s supply of inventory is down 8.3 percent, from 3.6 in March 2017 to 3.3 in March 2018 in the city of Chicago.