March Home Prices Up and Sales Down Over Last Year

Today, the Illinois Association of Realtors (IAR) reported that residential sales in the city of Chicago decreased by 3.4% since last year, with 2,099 sales in March 2016 compared to 2,173 sales in March 2015. The median sale price increased by 3.3% ($268,500 in March 2016 compared to $260,000 in March 2015). Homes in the City of Chicago were on the market an average of 54 days, down from 61 days last March.

In IAR’s press release, Dan Wagner, president of the Chicago Association of REALTORS® and senior vice president for government relations for the Inland Real Estate Group, said, “Intense buyer interest during the first months of the year further reduced the already low number of properties which were on the market. With more properties coming on the market as consumers embrace the spring selling season, we should see inventories better able to meet significant buyer demand. Homes are selling faster than they were last year, so consumers need to act quickly if they are interested in buying.”

The following charts summarize median price and sales trends:

The University of Illinois Regional Economics Applications Laboratory estimates moderate increases in Chicago area* annual sales levels, with changes ranging from 14.5% to
18.8% on average compared to last year for April, May and June 2016. Other notes from the forecast report include:

• Median prices in the Chicago area are estimated to post year-over-year gains of +6.2% in April, +6.5% in May and +6.9% in June.
• In March 2016, at the previous 12 month average sales rate, the Chicago area had enough housing inventory for 3.2 months (down from 4.1 months a year ago). However, the supply of homes above $500K continues to increase in both Illinois and the Chicago area.
• The pending home sales index, a leading indicator based on contract signings, was 249.7 in March (100=average pending sales in 2008). The number of homes put under contract in the Chicago area was greater than last year (up 20.3% from March 2015) and significantly greater than last month (up 34.9% from February 2016).