Market Snapshot: January 2016

 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 January 2016, 1,374 homes sold in the City of Chicago. This is a 1.9 percent increase from January 2015.
  • The median sales price in the City of Chicago for January 2016 was $229,000, up 4.1 percent from this time last year.
  • The City of Chicago saw listings average 101 days on the market until sale, a 5.6 percent increase from 96 days in January 2015.
  • Check out the January 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 January 2016, 6,018 homes sold in the Chicago PMSA. This is a 4.8 percent increase from January 2015.
  • The median sales price in the Chicago PMSA for January 2016 was $191,000, up 9.1 percent from this time last year.

State of the Market

  • “The Chicago market is seeing sustained, steady increases in both sales and prices,” said Dan Wagner, president of the Chicago Association of REALTORS® and senior vice president for governmental relations for the Inland Real Estate Group of Companies. “To have a January with strong results bodes well for the spring selling season when interest in the housing market typically increases.”
  • Homebuyers are no longer waiting for spring and summer to list, and buyers are interested in seeing what’s available year-round. The City of Chicago is off to a strong start for the New Year, with home sales and prices increasing in January.


  • Illinois housing inventory fell to a new low in January, with a 12.6 percent decline from 2015. The month’s supply of inventory fell to 4.2 months.
  • City of Chicago inventory is down 16.4 percent, from 8,738 in Jan. 2015, to 7,299 in Jan. 2016.
  • In the City of Chicago, the month’s supply of inventory is down 24.4 percent, from 4.1 in Jan. 2015 to 3.1 in Jan. 2016.
  • Tighter inventory is spurring buyers to move quickly when they find the right home, and the increase in price reflects that. Opportunities for sellers continue to be excellent, as homes are selling at higher prices. But, higher home prices will impact affordability in some areas.
  • For homes priced above 700k in the Chicago PMSA, months of supply are increasing.
  • With the lack of inventory of existing homes and slow pace of new residential construction, there is no quick end in sight for Chicago’s inventory issues.

REAL Forecast

  • The median price forecast indicates moderate annual growth in February, March and April, compared to one year ago for median home prices. For the Chicago PMSA, increases of 6.1 percent in February, 4.1 percent in March and 5.8 percent in April are forecast.
  • The first quarter of 2016 will provide much insight into how the State of Illinois’ budget impasse and concerns about job retention will impact the Chicago housing market this year. Nationally, consumers seem more optimistic about selling a house, than buying one, despite low mortgage interest rates.
  • Read the REAL Forecast in full.


  • Foreclosures continue to play a smaller role in the housing market. In the Chicago PMSA, the percentage of foreclosed sales among the total sales registered the lowest January reading since 2008 (18.5 percent).
  • In January 2016, 1,784 houses were newly filed for foreclosure in the Chicago PMSA, and 1,463 foreclosures were completed. As of January 2016, there are 37,122 homes at some stage of foreclosure – the foreclosure inventory.

TRID Impact

  • According to NAR, in the first three months of the new TILA-RESPA Integrated Documentation (TRID) Rules, REALTORS® reported delays in 10.4 percent of real estate closings and cancellations in less than one percent. NAR found that TRID, which went into effect on Oct. 3, 2015, has had a “modest impact on the market, but significant impact for those settlements that were delayed.”
  • Read the survey.