Market Conditions: Chicago January 2024 Sales Fall 3.4% as Median Price Rises 6.3%
Inventory has been near record lows in Chicago for months. This impacts home sales. You can’t buy what isn’t on the market.
January sales fell to the lowest levels since 2011, which was near the bottom of the housing bust.
From the Illinois Association of Realtors:
The city of Chicago saw a 3.4 percent year-over-year home sales decrease in January 2024 with 1,059 sales, down from 1,096 in January 2023. The median price of a home in the city of Chicago in January 2024 was $315,000, up 6.3 percent in January 2023 when it was $296,408.
Sales Data Since 2006 (thanks to G for the older data):
- January 2006: 2009 sales and median price of $258,000
- January 2007: 1850 sales and median price of $279,900
- January 2008: 1203 sales and median price of $290,000
- January 2009: 918 sales and median price of $205,000
- January 2010: 1237 sales and median price of $195,000
- January 2011: 1034 sales and median price of $150,000
- January 2012: 1123 sales and median price of $149,000
- January 2013: 1521 sales and median price of $157,000
- January 2014: 1383 sales and median price of $200,750
- January 2015: 1348 sales and median price of $220,000
- January 2016: 1398 sales and median price of $227,750
- January 2017: 1574 sales and median price of $255,000
- January 2018: 1444 sales and median price of $265,000
- January 2019: 1347 sales and median price of $255,000
- January 2020: 1462 sales and median price of $267,500
- January 2021: 1698 sales and median price of $310,000
- January 2022: 1831 sales and median price of $310,000
- January 2023: 1096 sales and median price of $296,408
- January 2024: 1059 sales and median price of $315,000
“In January, an increase in median sales price and a decrease in inventory are indicative of a steady drive in homebuyers,” said Drussy Hernandez, president of the Chicago Association of REALTORS® and vice president of brokerage services for Coldwell Banker Realty in Chicago.
“The notable surge in single family sales price in a pinched inventory market demonstrates buyers’ commitment to making homeownership a reality.”
Statewide, inventory fell another 22.1% to 15,186 from 19,501 last year. In Chicago, inventory hit a new low in January, falling another 28.1%. Here’s the 3 year statistics.
- January 2022: 6,084
- January 2023: 5,329
- January 2024: 3,829
“The housing market is continuing its long-running trend of low sales and relatively high prices,” said Dr. Daniel McMillen, professor of real estate and associate dean for faculty affairs at the University of Illinois-Chicago College of Business Administration.
“However, consumer confidence has turned up markedly, and sales traditionally increase significantly in spring. We expect the recent trends toward lower inflation rates, interest rates, and unemployment rates to lead to a rebound in the housing market in the coming months.”
Days on the market fell 12.2% in Chicago to 43 days from 49 days last year.
The 30-year average fixed rate mortgage was 6.64%, down from 6.82% in December 2023. But that is still higher than a year ago, when it averaged 6.27%.
It seems like inventory falls every month to a new low.
What will turn this trend around?
Illinois’ home sales and median prices rise as the number of available homes shrinks again [Illinois Association of Realtors, Press Release, by Bill Kozar, February 22, 2024]