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®.- 2,776 properties were sold in the City of Chicago in July 2018. This is a 2.9 percent increase from July 2017.
- The median sales price in the City of Chicago for July 2018 was $305,000, up 1.7 percent from this time last year.
- The City of Chicago saw listings average 64 days on the market until contract, an 8.5 percent increase from 59 days in July 2017.
- Check out the July 2018 FastStats.
STATE OF THE MARKET
- Housing price bubble chatter has increased this summer, as market observers attempt to predict the next residential real estate shift. It is too early to predict a change from higher prices and lower inventory, but the common markers that caused the last housing cool-down are present. Wages are up but not at the same pace as home prices, leading to the kind of affordability concerns that can cause fewer sales at lower prices. At the same time, demand is still outpacing what is available for sale in many markets.
- Consumer spending on home goods and renovations are up, and more people are entering the workforce. Employed people spending money is good for the housing market. Meanwhile, GDP growth was 4.1% in the second quarter, the strongest showing since 2014. Housing starts are down, but that is more reflective of low supply than anything else. With a growing economy, solid lending practices and the potential for improved inventory from new listing and building activity, market balance is more likely than a bubble.
- “This July outpaced last year’s, with a higher number of closing sales further contributing to the shrinking pool of inventory,” Rebecca Thomson, principal of Thomson Real Estate Group and president of the Chicago Association of REALTORS®, said. “The summer market has some staying power, and if July’s numbers are any indication, buyers should expect a competitive market with fewer options, limited time to make decisions, and steadily increasing prices.”
INVENTORY
- City of Chicago inventory is down 5.0 percent, from 9,823 homes in July 2017, to 9,333 homes in July 2018.
- The month’s supply of inventory is down 4.8 percent, from 4.2 in July 2017 to 4.0 in July 2018 in the City of Chicago.