C.A.R.’s market snapshot helps prepare you to answer questions about Chicago’s real estate industry, while projecting confidence and consistency as a voice for Chicago REALTORS®. If you would like to discuss any of your upcoming media or other public speaking opportunities, contact Jessica Kern, Director of Marketing & Communications or Maria Dickman, Communications Specialist.
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®.- In October 2016, 2,007 homes sold in the City of Chicago. This is a 7.6 percent decrease from October 2015.
- The median sales price in the City of Chicago for October 2016 was $262,000, up 9.2 percent from this time last year.
- The City of Chicago saw listings average 75 days on the market until contract, a 10.7 percent decrease from 84 days in October 2015.
- Check out the October 2016 FastStats.
MARKET SNAPSHOT – CHICAGO PMSA
*The Chicago PMSA Market Snapshot represents the U.S. Census Bureau’s definition of the nine-county Chicago area, including areas that would qualify as metropolitan areas on their own, yet are linked to other cities in close proximity. The Chicago PMSA includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.- In October 2016, 8,762 homes sold in the Chicago PMSA. This is a 6.3 percent decrease from October 2015.
- The median sales price in the Chicago PMSA for October 2016 was $216,250, up 8.1 percent from this time last year.
STATE OF THE MARKET
- “Although the autumn market’s pace is reduced compared to the summer months, great opportunities to buy and sell property remain,” said Matt Silver, president of the Chicago Association of REALTORS® and partner at Urban Real Estate. “As long as the low inventory continues, strategically priced properties will continue to fly off the market at higher prices.”
- As we enter the final quarter of 2016, not much has changed since the year began. Market predictions have been, in a word, predictable. A relatively comfortable pace of activity has been maintained thanks to continuing low unemployment and mortgage rates. The one basic drag on market acceleration has been inventory decline. There is little to indicate that the low inventory situation will resolve anytime soon.
- Low housing inventory and consumer reluctance to make a big move before the election may have prompted some potential homebuyers to stay on the sidelines in October. Prices remained strong, but sales dipped statewide and in the Chicago area. The post-election outlook remains fluid with mortgage rates climbing higher the last two weeks and some uncertainty about President-elect Donald Trump’s plans for the industry. President Matt Silver spoke with WGN recently about why now could be the right time for consumers to buy a home and lock in lower mortgage rates before the new year.
INVENTORY
- City of Chicago inventory is down 11.1 percent, from 10,162 homes in October 2015, to 9,034 in October 2016.
- In the City of Chicago, the month’s supply of inventory is down 13.6 percent, from 4.4 in October 2015 to 3.8 in October 2016.
- Housing inventory continues to trail last year, leaving consumers with fewer listings to consider. The good news for sellers is that median home prices continue to show solid gains. And on the other side, buyers who lock in low rates can take advantage of a still affordable market.
REAL FORECAST
- The median price forecast indicates moderate annual growth in the Chicago PMSA. Median price increases of 7.9 percent in November, 8.4 percent in December and 8.2 percent in January are forecast.
- Read the REAL Forecast in full.
FORECLOSURES
- In October 2016, 1,544 houses were newly filed for foreclosure in the Chicago PMSA and 1,535 foreclosures were completed. As of October 2016, there are 41,098 homes at some stage of foreclosure — the foreclosure inventory.
- In October, for the Chicago PMSA, the percentage of foreclosed sales among the total sales was 11.2 percent, the lowest October reading since 2009.
NAR’s chief economist examines what a Trump presidency could mean for housing market
- National Association of REALTORS® Chief Economist Lawrence Yun breaks down how the Trump presidential administration could shape regulations, taxes, mortgage underwriting and other issues that will affect the real estate industry.
- Read the article.
Homebuilder confidence holds steady in November
- The National Association of Home Builders (NAHB) reports that builder confidence is holding firm and continues to show slow, gradual growth.
- “Ongoing job creation, rising incomes and attractive mortgage rates are supporting demand in the single-family housing sector. This will help keep housing on a steady, upward glide path in the months ahead,” said NAHB Chief Economist Robert Dietz.
- Read the release.