Although price gains for the Chicago housing market may be moderating, existing-home sales and median prices have continued to surpass their year-ago comparisons. According to the Illinois Association of REALTORS®, Chicago real estate agents closed out the summer housing market with moderate gains in both the median prices and home sales in August, despite the inventory remaining lower than a year ago.
In August 2015, Illinois home sales (including condominiums and single-family homes) summed to 15,088 homes, an increase of 0.9 percent from August 2014, where 14,957 homes were sold. In fact, the Illinois median price rose to $180,900, a 3.4 percent year-over-year increase. “The rising median prices seen in this summer’s market has coaxed many sellers to overcome lingering reluctance and list properties,” said Jim Kinney, president, Illinois Association REALTORS®.
According to the Federal Home Loan Mortgage Corp., the monthly average commitment rate for a 30-year, fixed-rate mortgage here in the North Central Region was 3.90 percent in August 2015, down from 4.04 percent in the previous month.
The statewide average length of time for a home to sell in the month of August was sixty-four days, three days less than last year, but up from fifty-nine days in the previous month. “It’s taking a phenomenally short time to sell a home in the city of Chicago,” said Hugh Rider, president, Chicago Association of REALTORS®. Consequently, the available housing inventory has remained tight with around 71,616 homes for sale, a decline of 8.7% from August 2014. “Buyers have a short window to swoop in and make an offer because there are so many others looking for properties even this late into the selling season.”
Home sales (condominiums and single-family homes) in the nine-county Chicago Primary Metropolitan Area totaled 10,854 units in August 2015 from 10,554 sales in August 2014, resulting in an increase of 2.8 percent. In August 2015, the median price in the Chicago PMSA was around $220,900, an increase of 2.7 percent from the same period last year. “Sales returned to a more modest long-term annual growth rate in August while prices continued to increase,” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) at the University of Illinois.
In August 2015, the city of Chicago sold 2,629 homes, resulting in an increase of 6.3% from August 2014 when 2,474 homes were sold. In Chicago, the median price of a home was $270,000, up 0.2% from last year where it was recorded at $269,500. “Of interest in Chicago was the fact that the median price of non-foreclosed properties remained virtually unchanged while the median price for foreclosed properties increased, contributing to the modest overall price increase,” added Hewings.
But just like in any market some agents do better than others. Real estate agents looking to advance their career will want to seek out the best real estate company to work for in Chicago where they will have the tools to best meet the growing demands of buyers and sellers.