November Home Prices Up, Sales Down Over Last Year

Today, the Illinois Association of Realtors (IAR) reported that residential sales in the city of Chicago decreased by -1.4% since last year, with 1,615 sales in November 2015 compared to 1,638 sales in November 2014. The median sale price increased by 2.2% ($235,000 in November 2015 compared to $230,000 in November 2014). Homes in the city of Chicago were on the market an average of 49 days, down from 53 days last November.

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, “Median prices in the Chicago market posted a strong showing in November, boosted by a lower number of properties from which to choose. To see inventories drop more than 16 percent year over year in Chicago clearly signals that buyers want to start the new year in a new home.”

The following charts summarize median price and sales trends:

The University of Illinois Regional Economics Applications Laboratory estimates minimal increases in Chicago area* annual sales levels, with changes ranging from 1.8% to 2.5% on average compared to last year for December, January, and February. Other notes from the forecast report include:

• Median prices in the Chicago area are estimated to post year-over-year gains of +9.7% in December, +8.5% in January, and +6.4% in February.
• In November 2015, at the previous 12 month average sales rate, the Chicago area had enough housing inventory for 3.5 months (down from 4.5 months a year ago). However, the supply of homes above $700K is increasing in both Illinois and the Chicago area.
• The pending home sales index, a leading indicator based on contract signings, was 133.5 in November (100=average pending sales in 2008). The number of homes put under contract in the Chicago area was greater than last year (up 13.7% from November 2014) but less than last month (down 13.1% from October 2015).

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.

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