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®.- 2,573 properties were sold in the City of Chicago in August 2019. This is a 6.5 percent decrease from August 2018.
- The median sales price in the City of Chicago for August 2019 was $289,250, up 3.3 percent from this time last year.
- The City of Chicago saw listings average 69 days on the market until contract, a 6.2 percent increase from 65 days in August 2018.
- Check out the August 2019 FastStats.
STATE OF THE MARKET
- As the summer draws to a close, multiple opposing factors and trends are competing to define the direction of the real estate market. After the Federal Reserve lowered its benchmark interest rate on July 31, 30-year mortgage rates continued to decline, approaching all-time lows last seen in 2016. Yet most experts agree these reductions are unlikely to bring sufficient relief, at least in the short term, for first-time home buyers. The lack of affordable inventory and the persistence of historically high housing prices continue to affect the housing market, leading to lower-than-expected existing home sales at the national level.
- As many homeowners refinanced their homes to take advantage of declining interest rates, consumer confidence in housing was reported to be at historically high levels. Even so, real estate professionals will need to monitor the market for signs of continued imbalances. Although the inventory of affordable homes at this point remains largely stable, it is stable at historically low levels, which may continue to push prices higher and affect potential buyers across the U.S.
- “There’s some hesitancy among consumers right now, with concerns regarding the yet-to-be-unveiled city budget, continued talks of a market downturn and ongoing international trade wars,” Tommy Choi president of the Chicago Association of REALTORS® and broker at Keller Williams Chicago – Lincoln Park, said. “However, the data reflects that the market has stabilized, and opportunities are still there, particularly as historically low mortgage rates persist. Market time is down, suggesting buyers who are looking to buy continue to act quickly, and median sales price has ticked up, so they’re willing to pay for what they want. Those in the market, but on the fence, will benefit from trusting their REALTOR® to understand pricing strategy and negotiation tactics.”
INVENTORY
- The City of Chicago’s inventory is down 2.0 percent, from 9,903 homes in August 2018 to 9,709 homes in August 2019.
- The month’s supply of inventory is up 2.3 percent, from 4.3 in August 2018 to 4.4 in August 2019.