The numbers are in, and Chicago area home sales ended 2018 at a slower pace. According to Illinois REALTORS®, December home sales declined 16.5% in the Chicago Metro Area, compared to December 2017. This is a broad statistic that includes transaction volumes for single-family homes, condominiums, and townhomes in the nine-county metro. The median home sales price was $225,000 in December 2018, which was the same as December 2017.
Home sales also dropped within Chicago city limits. December 2018 transaction volume declined 17.5%, compared to December 2017. Median home prices in the city dropped 7.1% to $246,500. In December 2017, the median home price was $265,250.
- Higher mortgage interest rates during October and November
- Higher home prices
- Stock market volatility in the final months of 2018
- Political uncertainty with looming D.C. budget battles
- Buyer uncertainty over income tax law impacts
We’re willing to bet that the first two items carried the most influence on Chicago home buyers in the waning months of 2018. Since then, mortgage interest rates have fallen from their 2018 highs, and have held steady for several weeks. At the same time, Chicago home prices aren’t rising as fast as they were a year ago.
Another positive is the increase in home inventory we began to see a few months ago. With more Chicagoland homes on the market, homes are taking longer to sell, which takes some pressure off home buyers. Altogether, the early months of 2019 will offer some of the best home buying opportunities we’ve seen in some time.
There’s one big caveat: affordable homes remain in high demand. While home inventory has improved, the supply of entry-level homes is still limited. First-time home buyers won’t have the market in the palm of their hand, but if they are financially prepared, we can help them get an even shake.
StartingPoint Realty – serving first-time home buyers since 2004!
StartingPoint Realty proudly serves first-time home buyers throughout Chicago and the Northwest suburbs. Get an introduction to home buying by attending our free home buying seminar! There’s no sales pressure and no obligation. Space is limited, so please register your choice of location and date to reserve your seat!
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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