If you haven’t noticed, declining inventory has been a fairly significant problem facing the housing market, not only in the Chicago area but also all around the country as well.
Last month, a shortage of homes for sale continued to impact home sales nationwide, according to recently released numbers from the National Association of Realtors (NAR). The good news, however, is that available inventory is finally starting to grow, although at a much slower pace than many active home buyers would like.
At the end of April, supply was up 7.2% overall and reached 1.93 million existing homes for sale, but given the median days on market dropped to just 29 days—a new low—it’s clear even a 7 percent jump in inventory still isn’t keeping pace with demand.
There’s also no doubt that a lack of supply is negatively impacting home sales across the U.S., which dropped by 2.3% in April from just one month prior. Fewer homes on the market of course means fewer options for buyers to consider, and it’s also a primary catalyst that continues to drive up existing home prices. At the end of April, median existing home prices jumped a whopping 6% compared to last year, increasing from $230,900 in April of 2016 to $244,800 in April of 2017.