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 January 2017, 1,545 homes sold in the City of Chicago. This is a 10.7 percent increase from January 2016.
- The median sales price in the City of Chicago for January 2017 was $255,000, up 12.0 percent from this time last year.
- The City of Chicago saw listings average 95 days on the market until contract, a 7.8 percent decrease from 103 days in January 2016.
- Check out the January 2017 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 January 2017, 6,159 homes sold in the Chicago PMSA. This is a 0.6 percent increase from January 2016.
- The median sales price in the Chicago PMSA for January 2017 was $210,000, up 10.5 percent from this time last year.
STATE OF THE MARKET
- “We came out of the gates blazing, with greater activity this January than in years past, as consumers emerged from the holidays educated, prepared and ready to make decisions,” said Matt Silver, president of the Chicago Association of REALTORS® and partner at Urban Real Estate. “Our year-over-year numbers continue to demonstrate the strength of the Chicago market, as properties are being snatched up at a pace rarely seen, with higher prices across the board and rising interest rates – trends that will continue (barring ongoing inventory concerns) into the active spring season.”
- January brings out a rejuvenated crop of buyers with a renewed enthusiasm in a new calendar year. Sales totals may still inevitably start slow in the first half of the year due to ongoing inventory concerns. Continued declines in the number of homes available for sale may push out potential buyers who simply cannot compete for homes selling at higher price points in a low number of days, especially if mortgage rates continue to increase.
- In case you missed it, we have a new U.S. president. In his first hour in office, the .25 percentage point rate cut on mortgage insurance premiums for loans backed by the Federal Housing Administration (FHA) was removed, setting the table for what should be an interesting presidential term for real estate policy. FHA loans tend to be a favorable option for those with limited financial resources. On a brighter note, wages are on the uptick for many Americans, while unemployment rates have remained stable and relatively unchanged for several months. The system is ripe for more home purchasing if there are more homes available to sell.
INVENTORY
- City of Chicago inventory is down 9.9 percent, from 7,982 homes in January 2016, to 7,189 in January 2017.
- In the City of Chicago, the month’s supply of inventory is down 14.3 percent, from 3.5 in January 2016 to 3.0 in January 2017.
REAL FORECAST
- The median price forecast indicates moderate annual growth in the Chicago PMSA. Median price increases of 10.5 percent in February, 10.6 percent in March, and 5.9 percent in April are forecast.
- Read the REAL Forecast in full.
FORECLOSURES
- In January 2017, 1,807 houses were newly filed for foreclosure in the Chicago PMSA and 1,730 foreclosures were completed. As of January 2017, there are 26,781 homes at some stage of foreclosure — the foreclosure inventory.