The Chicago Real Estate Market
For most of the year, Chicago has shown a weak sales market when it comes to real estate. However, it does seem that the market is, overall, fairly strong even with sales dropping 7.2% since last September.
However, these numbers are much better than the major drop that was seen in August as well as over a point less than what was seen as an average for the state, but this is also not the last drop that will be seen for the remainder of the year.
That being said, it is important to look at the trends of the past several years before panicking on the housing market. Home sales in 97 showed just under the 2000 units sold per month mark and continued to climb until they peaked out around 3500 units sold just before the decline started occurring.
Over the next seven years, the housing market brought us many changes and when we finally begin to analyze the numbers that we are seeing today, we see that the numbers that have been put forth in September were actually the highest that they have been in the past seven years. They are even higher now than they were in 2001, which was just before home sales really began to climb.
When we begin looking at the city’s contract activity, we are able to predict what is likely to happen over the course of the next few months. In September, we see that contracts are slightly higher than they were last month. Although it is only a 1.4% increase over last year, it is good news that the numbers are moving in the right direction.
More good news when it comes to the housing market lies in the fact that pending home sales climbed just slightly from the month before. However, this increase is very slight and you may not feel the need to hold much stock in this number.
Another factor to consider when looking at the real estate market in Chicago is the fact that the distressed home sales have dropped because there are simply not that many distressed homes available. In fact, these numbers hit a 6 year low of 18.8% in September of this year. There has also been a median home increase of 8.7% over the previous year.
The inventory of homes in the Chicago real estate market is also very low, which can be an indicator that the market is actually stronger than it appears. These inventory numbers show that a detached single family home is staying around 5 month supply, which is the lowest that it has been at since 2008. Condos and townhouses have been at about 4.4 month supply, which means that the market is currently being considered a seller’s market.
Although sales are declining strongly, the homes that do sell are taking a very short time to sell. In fact, these numbers have been at historic lows and detached single homes are now averaging 78 days before they sale. Townhouses are also staying low at around 72 days. With these numbers, it is easy to see that the Chicago real estate market is starting to make a c