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 May 2016, 2,923 homes sold in the City of Chicago. This is a 6.3 percent increase from May 2015.
- The median sales price in the City of Chicago for May 2016 was $290,250, up 2.9 percent from this time last year.
- The City of Chicago saw listings average 74 days on the market until contract, a 8.2 percent decrease from 81 days in May 2015.
- Check out the May 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 May 2016, 11,664 homes sold in the Chicago PMSA. This is a 7.5 percent increase from May 2015.
- The median sales price in the Chicago PMSA for May 2016 was $234,500, up 6.1 percent from this time last year.
STATE OF THE MARKET
- “Sellers are still seeing healthy median price gains in the Chicago market, particularly in the single-family segment,” 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.
- The 2016 housing market has been one of strong and steady growth. May was no different, with homes selling faster and at higher prices than a year ago. As we head into summer, low mortgage rates and rising rents could be the impetus that prompts more consumers to decide that this summer is the time to buy. Sellers may take advantage of the competitive market by listing their homes amid the tighter available inventory.
- We are in the thick of an exciting period of home buying and selling, often with quick multiple offers that are near, at or even above asking price, depending on the factors of the home and submarket in question. It was widely predicted that we would see healthy sales activity during the second quarter of 2016, and the market has not disappointed.
- Although inventory is still being stretched thin in many areas, low mortgage rates coupled with higher wages have built a relatively sturdy housing marketplace. How long that can continue without fresh supply remains an important question, but conditions are seemingly good enough for serious buyers. With the current slow state of new construction for non-rental households, the road ahead could be tricky if demand remains high.
INVENTORY
- City of Chicago inventory is down 17.6 percent, from 10,234 in May 2015, to 8,429 in May 2016.
- In the City of Chicago, the month’s supply of inventory is down 23.9 percent, from 4.6 in May 2015 to 3.5 in May 2016.
REAL FORECAST
- The median price forecast indicates moderate annual growth in the Chicago PMSA. Median price increases of 8.4 percent in June, 10.2 percent in July and 11.1 percent in August are forecast.
- Read the REAL Forecast in full.
FORECLOSURES
- In May 2016, 1,737 houses were newly filed for foreclosure in the Chicago PMSA and 1,180 foreclosures were completed. As of May 2016, there are 39,969 homes at some stage of foreclosure – the foreclosure inventory.
- In May, for the Chicago PMSA, the percentage of foreclosed sales among the total sales was 14.2 percent, the lowest May reading since 2009.
NAR SURVEY: Student Loan Debt
- Student loan debt is a hurdle for many potential homebuyers. A new joint survey from the National Association of REALTORS® and SALT®, a consumer literacy program from American Student Assistance, found that 71 percent of non-homeowners with education debt believe that their student loans are causing them to put off buying a home. Learn more.