March and April were impressively busy months for the Chicago real estate market, with both single-family homes and Chicago condos selling in record numbers. In fact, it was the busiest month on record since 2008.
In addition to an uptick in overall sales, prices of Chicago condos and homes also increased. The median price climbed 9% during the month of March and 10.4% in April versus one year earlier according to the Illinois Association of Realtors. This marks the seventh consecutive month that median home prices rose on a year-over-year basis in Chicago. This news is just the latest bright spot for the Chicago condo market that continues to recover in the wake of the housing crisis.
Inventory issues remain an issue for upper-crust Chicago condos and single-family homes, as supply is having a hard time keeping up with demand. In both March and April, inventory levels were 43% lower than the previous year, and days on the market dropped from 97 days in 2012 to just 78 days this year.
Geoffrey J.D. Hewings, director of University of Illinois' regional economics applications laboratory, said, “The inventory in both the state and Chicago markets suggest that demand has begun to return to the housing market. However, foreclosed properties are accounting for a sizable portion of these sales. The good news is that foreclosed sales are outpacing new additions to the foreclosure inventory but at a cost of dampening median price increases.”
With interest rates remaining favorable at approximately 3.62% for a 30-year, fixed-rate in March (according to the Federal Home Loan Mortgage Corp.), it’s no wonder why so many people are interested in the Chicago real estate market. There has never been a better time to buy, but now, the issue is finding that perfect home.