February Home Prices and Sales are Up Over Last Year

This morning, the Illinois Association of Realtors (IAR) reported that residential sales in the city of Chicago increased by 3.9% since last year, with 1,448 sales in February 2015 compared to 1,393 sales in February 2014.  The median sale price surged up by 21.1% ($212,000 in February 2015 compared to $174,990 in February 2014). Homes in the city of Chicago were on the market an average of 68 days in February, up 1.5% from 67 days in February 2014.

In IAR’s press release, Hugh Rider, president of the Chicago Association of REALTORS® and co-president of Realty & Mortgage Co., said, “Chicago’s spring buying season is starting strong. In a sign of buyer confidence, year-over-year city sales increased for the first time since last summer despite the low inventory. This is welcome news for potential sellers who might have been tepid about putting their home on the market. Homeowners also can be motivated by median sales prices that continue to top last year’s.”

The following charts summarize median price and sales trends:

The University of Illinois Regional Economics Applications Laboratory estimates positive increases in Chicago area* annual sales levels, with changes ranging from +8.3% to +10.6% on average compared to last year for March, April, and May of 2015. Other notes from the forecast report include:

• Annual median prices in the Chicago area are predicted to have steady gains of +9.7% in March, +10.2% in April, and +7.5% in May compared to last year’s figures.
• In February 2015, at the previous 12 month average sales rate, the Chicago area had enough housing inventory for 3.5 months (slightly down from 3.6 months one year ago).
• The latest pending home sales index available (based on signed contracts, 100=average pending sales in 2008) stands at 160.5 in the Chicago area, up 18.9% from one month ago and up 17.9% from February 2014.

The press release, city of Chicago report, and forecast report are available on the IAR website.

*Chicago PMSA: Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will counties

Note: The Illinois Association of Realtors (IAR) transitioned to a new reporting system in December 2012 that resulted in revisions to previously reported data. IAR data is subject to revision by reporting Multiple Listing Service affiliates. For more information, please refer to the IAR website.

Chaired by Mayor Rahm Emanuel, World Business Chicago is the public-private partnership leading the Plan for Economic Growth and Jobs in order to drive business development, cultivate talent, and put Chicago at the forefront of the global economy.

WBC’s “Economic Briefs” track indicators from month to month to gauge the strength of several aspects of Chicago’s economy, including unemployment, population, venture capital, job openings and new hires, home sales, tourism, etc. This data provides a clear analytic framework for specific Plan strategies and initiatives. For a summary of these and other economic indicators, refer to WBC’s monthly Chicago By The Numbers.