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 June 2016, 3,267 homes sold in the City of Chicago. This is a 2.1 percent increase from June 2015.
- The median sales price in the City of Chicago for June 2016 was $300,000, up 4.0 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 June 2015.
- Check out the June 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 June 2016, 13,620 homes sold in the Chicago PMSA. This is a 2.1 percent increase from June 2015.
- The median sales price in the Chicago PMSA for June 2016 was $242,500, up 4.6 percent from this time last year.
STATE OF THE MARKET
- “Chicago homebuyers are having to work harder to find properties which meet their criteria and budget,” 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. “A combination of low mortgage rates and a limited number of properties on the market is pushing median prices higher, a continuation of a trend we have seen for much of the warm-weather selling season.”
- Halfway through 2016, residential real estate markets are performing as predicted at the beginning of the year. Sales and prices have been going up in most areas, while the number of homes for sale and total months’ supply of inventory have been going down. Meanwhile, many sellers have been getting a higher percentage of their asking price, and supply continues to struggle to meet demand. The message may be repetitive, but it is largely positive.
- The national unemployment rate recently dropped 0.3 percent to 4.7 percent, but some states felt more of a pinch in their own figures. Similarly, the low inventory situation is showing signs of strain in markets where there are few homes for purchase. With an interest rate increase still in the cards this year, combined with the American political landscape and global economic events, a cooldown could occur by winter. Presently, however, summery growth prevails as many locales are reaching near-record prices not seen in more than a decade.
- Low inventory continues to be a factor in the market, giving the season’s motivated buyers a smaller supply of homes from which to choose. They do benefit, however, from low mortgage rates that remain near record lows, a pattern that is expected to continue throughout the summer, according to Freddie Mac economists.
INVENTORY
- City of Chicago inventory is down 15.7 percent, from 10,420 in June 2015, to 8,785 in June 2016.
- In the City of Chicago, the month’s supply of inventory is down 23.4 percent, from 4.7 in June 2015 to 3.6 in June 2016.
REAL FORECAST
- The median price forecast indicates moderate annual growth in the Chicago PMSA. Median price increases of 6.3 percent in July, 7.1 percent in August and 5.2 percent in September are forecast.
- Read the REAL Forecast in full.
FORECLOSURES
- In June 2016, 1,640 houses were newly filed for foreclosure in the Chicago PMSA and 1,306 foreclosures were completed. As of June 2016, there are 40,303 homes at some stage of foreclosure – the foreclosure inventory.
- In June, for the Chicago PMSA, the percentage of foreclosed sales among the total sales was 11.5 percent, the lowest June reading since 2009.
NAR HOME SURVEY: Renter Concerns
- The latest Housing Opportunities and Market Experience (HOME) survey finds that while three-quarters of those surveyed believe now is a good time to buy a home, renters are less optimistic than homeowners. “Most homeowners appear to realize that if they’re ready to sell, they’ll likely find a buyer rather quickly and be able to use the sizeable equity they’ve accumulated in recent years towards their next home purchase. Meanwhile, renters interested in buying continue to face minimal choices, strong competition and home prices growing faster than their incomes,” said NAR Chief Economist Lawrence Yun. More information.
I-Refi offers Mortgage Assistance to Underwater Homeowners
- A new refinancing program from IHDA, I-Refi offers up to $50,000 in mortgage assistance to underwater homeowners starting August 1. I-Refi is available to those who have been current on their mortgage payments for at least 12 months and who meet IHDA’s income and credit requirements. Learn more.