February 2015 Speaking Points

Chicago Association of REALTORS® February 2015 Speaking Points C.A.R. speaking points help prepare you to answer questions about Chicago’s real estate industry and project 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 Barbara Matthopoulos, Vice President of Communications and Media Relations or Rebecca Boykin, Senior Public Relations Specialist. Market Snapshot 

• In December 2014, 7,971 homes sold in the Chicago PMSA. This marked a 3.7 percent decrease from December 2013 sales of 8,278 homes.
• The median price in December 2014 was $184,000, up 4.2 percent from $176,500 in December 2013.
• Listings in December averaged 66 days until sale, a slight increase from 65 days in December 2013.
• Chicago saw a 6.8 percent decrease in year-over-year home sales in December 2014 with 1,992 sales, down from 2,137 in December 2013.
• The median price forecast still indicates steady annual increases in median prices for January, February and March compared to a year ago. In the Chicago PMSA, the forecast is 5.3 percent in January, 8.2 percent in February and 5.8 percent in March. The sales forecast for January, February and March 2015 suggests positive year-over-year growth and milder monthly downtrends. In the Chicago PMSA, the change will range from 8.8 percent to 11.5 percent.
• In December for the Chicago PMSA, the percentage of foreclosed sales (e.g. REOs) among the total sales was 20.6 percent, higher than the 19.2 percent last month. A total of 6,214 regular sales were made, up 11.3 percent from last month.

2015 Market Outlook Jonathan Smoke, chief economist at Realtor.com, shared his predictions at our 2015 Market Outlook. His presentation highlights the trends to watch for this year. State of the Market

• Housing price gains and low inventory continue to be the leading market trends.
• In the new year, the current low inventory continues to restrict the housing market, and  we will look for supply to increase to bring relief.
• Federal action to ease mortgage credit will help fuel renewed interest from potential buyers who previously were blocked by tighter lending standards.
• Homeowners looking for a reason to sell now should be motivated by the current low rates, as rates are expected to creep up later this year.
• In the coming year, we’ll continue to see progress in the housing recovery, as inventory continues to come online to create a more balanced market.