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®.
- 1,514 properties were sold in the City of Chicago in February 2018. This is a 1.0 percent decrease from February 2017.
- The median sales price in the City of Chicago for February 2018 was $272,250, up 10.7 percent from this time last year.
- The City of Chicago saw listings average 103 days on the market until contract, a 3.0 percent increase from 100 days in February 2017.
- Check out the February 2018 FastStats.
STATE OF THE MARKET
- The three most prominent national market trends for residential real estate are the ongoing lack of abundant inventory, the steadily upward movement of home prices and year-over-year declines in home sales. Sales declines are a natural result of there being fewer homes for sale, but higher prices often indicate higher demand leading to competitive bidding. Markets are poised for increased supply, so there is hope that more sellers will take advantage of what appears to be a ready and willing buyer base.
- In February, prevailing mortgage rates continued to rise. This has a notable impact on housing affordability and can leave consumers choosing between higher payments or lower-priced homes. According to the Mortgage Bankers Association, the average rate for 30-year fixed-rate mortgages with a 20 percent down payment that qualify for backing by Fannie Mae and Freddie Mac rose to its highest level since January 2014. A 4.5 or 4.6 percent rate might not seem high to those with extensive real estate experience, but it is newly high for many potential first-time home buyers. Upward rate pressure is likely to continue as long as the economy fares well.
- “Buyers must be proactive in this market,” Rebecca Thomson, president of the Chicago Association of REALTORS® and vice president of agent development at @properties, said. “With inventory tightening, buyers may need to account for a longer search. In that same vein, prospective sellers may delay listing their homes until after they’ve identified where they plan to go. Fewer homes on the market make this a catch-22. When the right opportunity arises, buyers will need to act quickly.”
- City of Chicago inventory is down 8.6 percent, from 8,182 homes in February 2017, to 7,479 homes in February 2018.
- The month’s supply of inventory is down 8.8 percent, from 3.4 in February 2017 to 3.1 in February 2018 in the city of Chicago.