2013 First Quarter Chicago Market Update

Posted by Helaine Cohen on Thursday, May 9th, 2013 at 8:41am.

Limited Inventory, Multiple Offers (bidding), Decreased Time on Market, Upward Pressure on home Prices

Chicago CondosFirst quarter is showing that we are experiencing higher demand than supply in housing markets across the nation. We are still experiencing historically low mortgage rates and affordable home prices which is the catalyst for buyer traffic which is 25% higher than a year ago.  According to the National Association of Realtors”  Sales have been above year –ago levels for 21 months while prices have shown 13 consecutive month of year-over year increases:”

Like the national market,Chicago is also experiencing lower levels of housing inventory and, in turn, lower market times, multiple offers and higher asking prices. Buyers are experiencing the headache of losing out in bidding wars and writing many more offers on properties.  The percent of original asking price received in March is up over last year and running around 93%. In some cases bidding wars are driving price up over asking. 

Statistics: Condos

  • The number of closed condo sales is 19.8% higher than Q1 of  last year
  • The number of listings is down by 6.9 % from Q1 last year
  • Market time decreased by 31.8% from Q1 last year
  • Inventory is down 49.5% compared to March2012
  • Median sales price is up 8.7% from  Q1 last year
  • Months’ supply of inventory is at 3.3 months which is a huge decrease from a year ago at 8.6 and our all-time high of 18 months in mid-2009. Median sales price is up 8.7%  from Q1 last year.

Statistics: Single Family Homes

  • The number of closed sales single family homes is 19.9%  higher than Q1 last year
  • The number of listings is down by 6.3% from Q1 last year
  • Inventory is down 36.8 % compared to March 2012
  • Median sales price is up 4.0% from  Q1 last year
  • Month’s supply of inventory is at 4.3 months
    Case Shiller Home price index: homes prices increased 3.3% year-over-year- from last January for Chicago.

Downtown Chicago Condo Market

The following graph examines the downtown condo market (Near North -Streeterville, River North ,Goldcoast , Lincoln Park, Lakeview, The Loop, Lake Shore East, South Loop and West Loop) and shows how a significant drop in inventory has increased our medium prices year-over-year. In condos less than 1M we are at a 2 month supply of inventory!

Chicago Condo Market Under $1 Million

 Chicago Condo Market $1M+

 

 

 

 

Note: Months’ Supply of inventory (MSI) indicates how long it would take for all the homes on the market to be sold based on current inventory and sales rate

Supply and demand in number of units year-over-year

Chicago Condo Market Under 1M

  • For sale units down 38.6%
  • Under contract units up 46.4 %
  • Sold units up 27.2%

Chicago Condo Market -1M plus

  • For sale units down 27.8%
  • Under contract units up 23.5%
  • Sold units up 40%
If you’d like more local real estate information or are thinking of buying or selling your condo or single family home in Chicago, please feel free to visit my website at ChicagoCondoFinder.com, email me at helaine@chicagocondofinder.com, or give me a call at (312) 953-0961.
Helaine Cohen, Chicago Real Estate Broker

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