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 July 2016, 2,740 homes sold in the City of Chicago. This is a 11.0 percent decrease from July 2015.
- The median sales price in the City of Chicago for July 2016 was $290,000, up 1.8 percent from this time last year.
- The City of Chicago saw listings average 66 days on the market until contract, a 7.0 percent decrease from 71 days in July 2015.
- Check out the July 2016 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 July 2016, 11,716 homes sold in the Chicago PMSA. This is a 7.3 percent decrease from July 2015.
- The median sales price in the Chicago PMSA for July 2016 was $238,000, up 5.8 percent from this time last year.
STATE OF THE MARKET
- “If you have a home on the market, it’s selling at an incredible pace,” said Dan Wagner, president of the Chicago Association of REALTORS® and senior vice president for government relations at the Oakbrook-based Inland Real Estate Group of Companies, Inc. “In Chicago, the time to sell was just 38 days, and when you pair that number with double-digit annual decreases in inventory, it’s a market where sellers are reaping a premium.”
- Home sales slowed a bit in July as inventory levels remained low during the peak of the summer selling season. At the same time, the homes that were on the market were moving at a brisk pace as buyers acted quickly when they found the home of their dreams. Mortgage rates remain attractive and give consumers more buying power even as prices rise, but economic and political uncertainty may be prompting sellers to hold off on listing for now.
- Even as prices rise in many communities, homes are selling faster now than they have in the past several years. This creates a situation where buyers need to move fast in order to secure homes, and they may have to pay more for them. While increasing prices generally coax more selling activity, there has been some hesitancy among potential sellers who worry that they will not be able to buy a desirable and reasonably priced home once they sell.
- Low housing supply has already prevented an outright national boon in sales activity, despite a continuation of near record-low mortgage rates and an unemployment rate under 5.0 percent deep into 2016. The issue is not purchasing power. Many areas are falling behind last year’s closed sales totals simply because of lack of available inventory. As this continues, higher prices may put a deeper squeeze on the current buyer pool.
INVENTORY
- City of Chicago inventory is down 13.6 percent, from 10,544 in July 2015, to 9,110 in July 2016.
- In the City of Chicago, the month’s supply of inventory is down 19.1 percent, from 4.7 in July 2015 to 3.8 in July 2016.
REAL FORECAST
- The median price forecast indicates moderate annual growth in the Chicago PMSA. Median price increases of 6.5 percent in August, 4.7 percent in September and 4.0 percent in October are forecast.
- Read the REAL Forecast in full.
FORECLOSURES
- In July 2016, 1,546 houses were newly filed for foreclosure in the Chicago PMSA and 1,786 foreclosures were completed. As of July 2016, there are 39,672 homes at some stage of foreclosure – the foreclosure inventory.
ILLINOIS REALTORS® SURVEY: SENIORS CONCERNED ABOUT PROPERTY TAXES, HOUSING AFFORDABILITY
- While Illinois’s senior citizens like living in the state, many are concerned about the impact of rising property taxes, according to a new survey commissioned by the Illinois REALTORS® Senior Housing Working Group. The survey polled 600 seniors aged 55 and older to find out what they thought of their prospects for aging in place and their biggest concerns. Some takeaways from the survey: Eighty-one percent own their homes, 34 percent would downsize if they were to move and 69 percent rank a main-floor bathroom as one of the most desirable attributes in a home.
- Read the survey in full.
- Share a brochure with community policymakers.
- Access a senior housing toolkit.
WHY HOMEOWNERSHIP STILL MATTERS
- The U.S. homeownership rate is at a 50-year low, but owning a home remains a priority for many because of the benefits to individuals and the economy, said National Association of REALTORS® (NAR) Chief Economist Lawrence Yun in a recent Forbes column. One way that it does that is in long-term wealth accumulation. “According to the Federal Reserve’s Survey of Consumer Finances, a typical homeowner’s net worth was $195,400, while that of renter’s was $5,400 as of 2013. Given that home prices have risen by 17% since then according to Federal Housing Finance Agency the wealth of home owning Americans would have grown even more. That is, a typical homeowner will be ahead of a typical renter by a multiple of 45 on a lifetime financial achievement scale.”
- Read his column.
FIRST-TIME HOMEBUYERS RETURNING TO THE MARKET
- First-time buyers accounted for 33 percent of U.S. residential sales in June, an increase from earlier in the spring and last year, according to NAR. While interest rates have remained low, many of today’s buyers are challenged by the fact that home prices are rising faster than income growth.
- Read more from NAR.