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®.
- 2,685 properties were sold in the City of Chicago in August 2018. This is a 3.8 percent decrease from August 2017.
- The median sales price in the City of Chicago for August 2018 was $285,000, up 0.4 percent from this time last year.
- The City of Chicago saw listings average 65 days on the market until contract, a 4.8 percent increase from 62 days in August 2017.
- Check out the August 2018 FastStats.
STATE OF THE MARKET
- Rising home prices, higher interest rates and increased building material costs have pressured housing affordability to a ten-year low, according to the National Association of Home Builders. Keen market observers have been watching this situation take shape for quite some time. Nationally, median household income has risen 2.6% in the last 12 months, while home prices are up 6.0%. That kind of gap will eventually create fewer sales due to affordability concerns, which is happening in several markets, especially in the middle to high-middle price ranges.
- While some are starting to look for recessionary signs like fewer sales, dropping prices and even foreclosures, others are taking a more cautious and research-based approached to their predictions. The fact remains that the trends do not yet support a dramatic shift away from what has been experienced over the last several years. Housing starts are performing admirably if not excitingly, prices are still inching upward, supply remains low and consumers are optimistic. The U.S. economy is under scrutiny but certainly not deteriorating.
- “While average market time in August held steady, it will likely tick up in the coming months, as typically, the drop in temperature mirrors a slow down in the pace of the market,” Rebecca Thomson, president of the Chicago Association of REALTORS® and principal of Thomson Real Estate Group, said. “Buyers grappling with the inventory shortage have enjoyed prices holding steady and, coupled with interest rates, continue to see prime opportunities in the market.”
- City of Chicago inventory is down 4.4 percent, from 9,840 homes in August 2017, to 9,405 homes in August 2018.
- The month’s supply of inventory is down 4.8 percent, from 4.2 in August 2017 to 4.0 in August 2018 in the City of Chicago.