January 2018 Market Snapshot

MARKET SNAPSHOT – CITY OF CHICAGO

*The City of Chicago Market Snapshot represents the residential real estate activity within the 77 officially defined Chicago community areas as provided by the Chicago Association of REALTORS®.
  • 1,427 properties were sold in the City of Chicago in January 2018. This is a 9.2 percent decrease from January 2017.
  • The median sales price in the City of Chicago for January 2018 was $265,000, up 3.9 percent from this time last year.
  • The City of Chicago saw listings average 92 days on the market until contract, a 3.2 percent decrease from 95 days in January 2017.
  • Check out the January 2018 FastStats.

STATE OF THE MARKET

  • Last year, U.S. consumers seemed to be operating with a renewed but cautious optimism. The stock market was strong, wages were edging upwards and home buying activity was extremely competitive. Not much has changed in 2018 in terms of those measures, yet there is a sort of seasoned prudence mixed into the high emotions that go with a major expense like a home purchase. We are now several years deep into a period of rising prices and low inventory. Those in the market to buy a home have caught on. As sellers attempt to take advantage of rising prices, expect buyers to be more selective.
  • Whatever external forces are placed upon residential real estate markets across the country – whether they are related to tax legislation, mortgage rates, employment situation changes, new family formations, the availability of new construction and the like – the appetite for home buying remains strong enough to drive prices upward in virtually all markets across the country. New sales are not necessarily following that trend, but monthly increases are expected until at least late summer.
  • “Based on the present trends in the housing market, we anticipate a competitive spring for buyers,” Rebecca Thomson, president of the Chicago Association of REALTORS® and vice president of agent development at @properties, said. “With decreasing market time, sellers will need to be mindful of pricing strategically. If their home is not moving quickly, a proactive price adjustment may help them protect their overall investment without risking the stigma of a longer-than-average market time. With how quickly inventory is moving, an overpriced listing could get left behind.”

INVENTORY

  • City of Chicago inventory is down 10 percent, from 7,796 homes in January 2017, to 7,020 homes in January 2018.
  •  The month’s supply of inventory is down 12.1 percent, from 3.3 in January 2017 to 2.9 in January 2018 in the city of Chicago.