June Home Prices and Sales
The Illinois Association of Realtors (IAR) reported that residential sales in the city of Chicago held mostly steady, with 3,210 sales in June 2016 compared to 3,202 sales in June 2015 (+0.2%). The median sale price increased by 4.1% ($300,000 in June 2016 compared to $288,250 in June 2015). Homes in the City of Chicago were on the market an average of 37 days, down from 41 days last June. In related news, the Tribune reported earlier this month that 110 of the 406 Wanda Vista Tower condominiums are under contract. Condos reportedly range from $900,000 for a single bedroom unit up to $10 million.
In IAR’s press release, Dan Wagner, president of the Chicago Association of REALTORS® and senior vice president for government relations for the Inland Real Estate Group, said, “A combination of low mortgage rates and a limited number of properties on the market is pushing median prices higher, a continuation of a trend we have seen for much of the warm-weather selling season.”
The following charts summarize median price and sales trends:
<img class="alignnone size-full wp-image-667858" src="http://www.worldbusinesschicago.com/wp-content/uploads/2016/07/HomeTwoYearAvg-722161.png" alt="HomeTwoYearAvg 72216" width="806" height="444" srcset="http://www.worldbusinesschicago Recommended Site.com/wp-content/uploads/2016/07/HomeTwoYearAvg-722161.png 806w, http://www.worldbusinesschicago.com/wp-content/uploads/2016/07/HomeTwoYearAvg-722161-300×165.png 300w” sizes=”(max-width: 806px) 100vw, 806px” />
The University of Illinois Regional Economics Applications Laboratory estimates increases in Chicago area* annual sales levels for July, August, and September 2016, with average changes ranging from 8.2%-11.1% compared to last year. Other notes from the forecast report include:
- Median prices in the Chicago area are estimated to post year-over-year gains of +6.3% in July, +7.1% in August, and +5.2% in September.
- In June 2016, at the previous 12 month average sales rate, the Chicago area had enough housing inventory for 3.5 months (down from 4.6 months a year ago). However, months of supply for homes in all price ranges except $700K+ declined in both Illinois and the Chicago area.
- The pending home sales index, a leading indicator based on contract signings, was 240.1 in June (100=average pending sales in 2008). The number of homes put under contract in the Chicago area was greater than last year (up 19.8% from June 2015) and greater than last month (up 2.2% from May 2016).
*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.
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.
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