May 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®.
  • 3,009 properties were sold in the City of Chicago in May 2018. This is a 1.2 percent decrease from May 2017.
  • The median sales price in the City of Chicago for May 2018 was $305,000, down 0.3 percent from this time last year.
  • The City of Chicago saw listings average 69 days on the market until contract, a 1.5 percent increase from 68 days in May 2017.
  • Check out the May 2018 FastStats.

STATE OF THE MARKET

  • Just like last year at this time, prospective home buyers should expect a competitive housing market for the next several months. With payrolls trending upward and unemployment trending downward month after month in an extensive string of positive economic news, demand remains quite strong. Given the fact that gradually rising mortgage rates often infuse urgency to get into a new home before it costs more later, buyers need to remain watchful of new listings and make their offers quickly.
  • Although home sales may actually drop in year-over-year comparisons over the next few months, that has more to do with low inventory than a lack of buyer interest. As lower days on market and higher prices persist year after year, one might rationally expect a change in the outlook for residential real estate, yet the current situation has proven to be remarkably sustainable likely due to stronger fundamentals in home loan approvals than were in place a decade ago.
  • “Buyers are feeling the pressure to move quickly, with shorter market times and fewer homes to choose from,” Rebecca Thomson, president of the Chicago Association of REALTORS® and principal of Thomson Real Estate Group, said. “For sellers, it’s all about positioning. With prices holding steady, sellers need to price it right from the beginning.”

INVENTORY

  • City of Chicago inventory is down 5.3 percent, from 9,222 homes in May 2017, to 8,734 homes in May 2018.
  • The month’s supply of inventory is down 5.1 percent, from 3.9 in May 2017 to 3.7 in May 2018 in the city of Chicago.