Market Conditions: Chicago Sales up 6.7% in February 2024 as Inventory Falls Again
The February data is out from the Illinois Association of Realtors. Spring buying season appeared to start early this year due to the mild winter weather.
Sales were up from last year, even with mortgage rates over 6%, as median price was at a 27-year high.
From the Illinois Association of Realtors:
The city of Chicago saw a 6.7 percent year-over-year home sales increase in February 2024 with 1,321 sales, up from 1,238 in February 2023. The median price of a home in the city of Chicago in February 2024 was $330,000, up 6.5 percent in February 2023 when it was $310,000.
Here is the sales data for February going back to 1997 (courtesy of G):
- 1997: 881 sales
- 1998: 991
- 2000: 1383
- 2001: 1151
- 2002: 1677
- 2003: 1566
- 2004: 1814
- 2005: 2228
- 2006: 1855
- 2007: 1703
- 2008: 1454
- 2009: 870
- 2010: 1257
- 2011: 1092
- 2012: 1250
- 2013: 1411
- 2014: 1361
- 2015: 1497
- 2016: 1567
- 2017: 1529
- 2018: 1535
- 2019: 1449
- 2020: 1496
- 2021: 1658
- 2022: 1924
- 2023: 1238
- 2024: 1321
Here is the Median Price Data also going back to 1997 (thanks G!):
- 1997: $117,000
- 1998: $132,000
- 1999: $143,750
- 2000: $161,500
- 2001: $180,200
- 2002: $212,000
- 2003: $215,000
- 2004: $229,900
- 2005: $268,900
- 2006: $267,500
- 2007: $270,000
- 2008: $290,000
- 2009: $218,125 (with 31% being REO/Short Sales)
- 2010: $176,000 (with 46% being REO/Short Sales)
- 2011: $150,250 (with 50% being REO/Short Sales)
- 2012: $140,300 (with 52% being REO/Short Sales)
- 2013: $158,000
- 2014 $175,000
- 2015: $212,000
- 2016: $236,000
- 2017: $246,000
- 2018: $272,000
- 2019: $272,500
- 2020: $290,000
- 2021: $320,000
- 2022: $320,000
- 2023: $310,000
- 2024: $330,000
Just a reminder that 2022 was the highest February for sales in 17 years in Chicago. The Federal Reserve started its rate increases in March 2022 so February was the last hurrah at the lower rates.
“Sellers drove the market in February, as seen in the increase in both closed sales and median sales price,” said Drussy Hernandez, president of the Chicago Association of REALTORS® and vice president of brokerage services for Coldwell Banker Realty in Chicago. “Competitively priced homes are moving quickly, and multiple offer scenarios are commonplace due to strained inventory and buyer demand.”
Single family home sales jumped year-over-year, rising 17% to 524. Condo sales were also up 0.9% to 797.
Inventory continued to slide.
Statewide, inventory fell 14.4% to 15,502 homes from 18,107 in 2023. That’s the lowest number of homes on the market since the IAR began tracking it in 2008.
In Chicago, inventory fell 20.3% to 4,111 homes from 5,155 last year.
Days on the market in Chicago was down a day, to 46 days from 47 days last year.
The 30-year average fixed rate mortgage was 6.78% in February, up from 6.64% in January and also higher than February of last year, when it was 6.26%.
“Even though February home sales were down slightly, I feel confident a growing number of consumers are feeling better about the economy and are anticipating more positive news on reduced interest rates,” says Matt Silver, Illinois REALTORS® 2024 President and partner and senior broker for Corcoran Urban Real Estate in Chicago. “And to improve our woeful housing shortage, we’re working diligently with state lawmakers on several legislative measures that will create housing that is more affordable around the state.”
There appears to be a lot more buyers than properties which is leading to multiple bid scenarios.
Is inventory bottoming out this spring or will it fall even further?
With housing inventory reaching lowest mark since 2008, Illinois’ February home sales dip [Illinois Association of Realtors Press Release, by Bill Kozar, March 21, 2024]