You’ve heard it before, and we’re about to say it again: home sales are up, home prices are rising, and Chicago home inventory is lean. This is the real estate story of early 2017, and it might stick around for months to come. Here’s a snapshot of what’s happening, as published in the Chicago Tribune, along with our own insights!
January 2017 home prices in Chicago were 12.4% higher than January 2016. Home sales volumes increased by 9.3%. Single-family home sale prices reached a median of $256,000.
Condominium prices in Chicago stole the show. Condo prices increased 17.7% from a year ago, reaching a new median of $311,250.
In the nine-county area that consists of Chicago’s greater metropolitan turf, January 2017 home prices increased by 10.5% compared January 2016. The median home price in the Chicago Metro now stands at $210,000.
Looking at sales timelines, Chicago homes spent an average of 54 days-on-market during January 2017. In the nine-county metropolitan area, homes spent an average of 61 days-on-market. Both of these figures represent shorter timelines than a year ago, shaving off 9 days and 8 days, respectively.
Is there relief in sight for home buyers? Yes and no. New home construction looks to be picking up in the suburbs, but we’re seeing smaller developments in the planning stages. We’re also seeing new homes being built on existing lots in ones-and-twos. With prices of land remaining high, and developers keeping speculative construction in check, it’s unlikely that new construction alone will solve the inventory problem.
Until home prices reach thresholds that entice profit-taking by investors and owner-occupants, we’re not likely to see a significant influx of listings. However, homeowners who are looking to sell at peak prices typically list their properties in the spring, when buyers are out in the greatest numbers. More home inventory will be coming, but Chicago home buyers need to be well-prepared!
StartingPoint Realty – dedicated to first-time Chicago home buyers!
StartingPoint Realty proudly serves first-time home buyers throughout Chicago and the Northwest suburbs. We provide complete education and guidance during the entire home buying process!
Be sure to attend a free home buying seminar to learn about Chicago home buying! Always feel welcome to contact us for help with your Chicago home buying questions!
Ryan Gable Broker/CEO Starting Point Realty
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