October 2016 Home Prices and Sales

Today, the Illinois Association of Realtors (IAR) reported that year over year residential sales in the city of Chicago decreased by 8.8%, with 1,981 sales in October 2016 compared to 2,173 sales in October 2015. The median sale price increased by 9.2% ($262,000 in October 2016 compared to $240,000 in October 2015). Homes in the city of Chicago were on the market an average of 42 days, down from 49 days last October.

Matt Silver, president of the Chicago Association of REALTORS® and partner at Urban Real Estate, stated, “Although the autumn market’s pace is reduced compared to the summer months, great opportunities to buy and sell property remain. As long as the low inventory continues, strategically priced properties will continue to fly off the market at higher prices.”

The following charts summarize median price and sales trends:

The University of Illinois Regional Economics Applications Laboratory estimates positive growth in Chicago area* annual sales levels for November, December, and January with average changes expected to increase by 8.5% to 11.5% compared to last year. Other notes from the forecast report include:

• Median prices in the Chicago area are estimated to post year-over-year gains of +7.9% in November, +8.4% in December, and +8.2% in January.
• In October 2016, at the previous 12 month average sales rate, the Chicago area had enough housing inventory for 3.4 months (down from 4.3 months a year ago). Months of supply for homes in all price ranges declined in both Illinois and the Chicago area.
• The pending home sales index, a leading indicator based on contract signings, was 168.8 in October (100=average pending sales in 2008). The number of homes put under contract in the Chicago area was up 12.5% from October 2015.