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 February 2016, 1,546 homes sold in the City of Chicago. This is a 3.3 percent increase from February 2015.
- The median sales price in the City of Chicago for February 2016 was $235,000, up 10.8 percent from this time last year.
- The City of Chicago saw listings average 60 days on the market until contract, an 11.8 percent decrease from 68 days in February 2015.
- Check out the February FastStats.
MARKET SNAPSHOT – CHICAGO PMSA
*The Chicago PMSA Market Snapshot represents the U.S. Census Bureau’s definition of the Chicago area, including areas that would qualify as metropolitan areas on their own, yet are linked to other cities in close proximity.- In February 2016, 6,095 homes sold in the Chicago PMSA. This is a 6.1 percent increase from February 2015.
- The median sales price in the Chicago PMSA for February 2016 was $187,500, up 7.1 percent from this time last year.
STATE OF THE MARKET
- “Now is the time to sell your home if you’ve been thinking about doing that,” said Dan Wagner, president of the Chicago Association of REALTORS® and senior vice president for government relations for The Inland Real Estate Group. “Compared to last year, the median sales price for all closed sales is up about 12% and there is a faster turnaround time between when a home is listed and when it sells.”
- Fairly mild winter weather and strong buyer demand set the stage for robust annual gains in home sales and median prices in February. With low mortgage rates giving consumers more buying power, this is a good time for current homeowners to think about moving up, listing their homes for sale and tapping into pent-up buyer demand.
INVENTORY
- Illinois housing inventory fell again in February, with an 11.3 percent decline from 2015. The month’s supply of inventory fell to 4.2 months.
- City of Chicago inventory is down 14.5 percent, from 8,930 in February 2015, to 7,636 in Feb. 2016.
- In the City of Chicago, the month’s supply of inventory is down 23.2 percent, from 4.2 in February 2015 to 3.2 in February 2016.
- As consumers navigate their options, competition for the best-available properties should be profound, especially if the market remains hobbled by a lack of supply.
- For homes priced below 700k in the Chicago PMSA, months of supply decreased; the lower the price range, the lower the months of supply. For home priced above 700k, the months of supply continues to increase.
- Inventory remains historically low, particularly for homes in lower price ranges, and continues to be an issue affecting the market. The cure, of course, is more inventory, but new construction has been lagging and sellers of existing homes are not yet hitting the market in droves. The heart of the selling season has yet to begin, so we’re still optimistically watching for an increase in activity in the coming months.
REAL FORECAST
- Expect both home sales and median prices to experience moderate year-over-year growth in March, April and May, as home prices statewide are edging towards 2008 levels. For the Chicago PMSA, median price increases of 4.5 percent in March, 6.6 percent in April and 7.1 percent in May are forecast.
- Read the REAL Forecast in full.
FORECLOSURES
- Foreclosure sales in the Chicago PMSA accounted for only 19.4 percent of total sales, the lowest February total since 2008.
- In February 2016, 2,049 houses were newly filed for foreclosure in the Chicago PMSA, and 1,257 foreclosures were completed. As of February 2016, there are 37,956 homes at some stage of foreclosure – the foreclosure inventory.
NAR Home Survey
- 75 percent of people believe now is a good time to buy, and that number increases to 80 percent in the Midwest, according to the first quarter Housing Opportunities and Market Experience (HOME) survey.
- “A high number of homeowners are expressing that it’s a good time to buy, and this sentiment is no doubt being fueled by the $4.4 trillion in housing equity accumulation in the past three years,” NAR Chief Economist Lawrence Yun said. “On the other hand, accelerating home prices and the perceived difficulty in obtaining a mortgage appears to be tugging at the confidence of renters.
- Read the news release and share the infographic.