May Home Prices and Sales Up Over Last Year

Today, the Illinois Association of Realtors (IAR) reported that residential sales in the city of Chicago increased by 5.0% since last year, with 2,887 sales in May 2016 compared to 2,750 sales in May 2015. The median sale price increased by 3.6% ($291,000 in May 2016 compared to $281,000 in May 2015). Homes in the City of Chicago were on the market an average of 40 days, down from 46 days last May.

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, “Sellers are still seeing healthy median price gains in the Chicago market, particularly in the single-family segment. The 40 days it’s taking to sell a home in Chicago underscores the fast-moving nature of this market and shows that the city is powerfully attractive to buyers.”

The following charts summarize median price and sales trends:

The University of Illinois Regional Economics Applications Laboratory estimates moderate increases in Chicago area* annual sales levels, with changes ranging from 6.8% to 9.1% on average compared to last year for June, July and August 2016. Other notes from the forecast report include:

• Median prices in the Chicago area are estimated to post year-over-year gains of +8.4% in June, +10.2% in July and +11.1% in August.
• In May 2016, at the previous 12 month average sales rate, the Chicago area had enough housing inventory for 3.4 months (down from 4.5 months a year ago). However, the months of supply for homes above $700,000 continued to increase in both Illinois and the Chicago area.
• The pending home sales index, a leading indicator based on contract signings, was 255.1 in May (100=average pending sales in 2008). The number of homes put under contract in the Chicago area was greater than last year (up 18.5% from May 2015) and greater than last month (up 4.1% from April 2016).