Market Conditions: Chicago Sales Up Just 1.7% in December 2017 as Statewide Inventory Shrank

Lincoln statute in Lincoln Park 2011

The Illinois Association of Realtors (which has a new website for 2018 – exciting) is finally out with the December 2017 sales numbers:

The city of Chicago saw a 1.7 percent year-over-year home sales increase in December 2017 with 2,008 sales, up from 1,974 in December 2016. Year-end home sales totaled 28,621, a 1.8 percent increase compared to 28,104 in 2016.

The median price of a home in the city of Chicago in December 2017 was $267,500, up 2.9 percent compared to December 2016 when it was $260,000. The year-end 2017 median price reached $285,000, up 4.8 percent from $272,000 in 2016.

December is usually not a real busy month in real estate. There’s too much emphasis on the holidays.

  • December 2004: 3,719 sales and median price of $267,000
  • December 2005: 2,847 sales and median price of $283,000
  • December 2006: 2,241 sales and median price of $279,000
  • December 2007: 1,629 sales and median price of $287,000
  • December 2008: 1,263 sales and median price of $235,000
  • December 2009: 1,820 sales and median price of $208,000 (34% short/REO sales)
  • December 2010: 1,475 sales and median price of $166,000 (43% short/REO sales)
  • December 2011: 1,536 sales and median price of $156,000 (44% short/REO sales)
  • December 2012: 1806 sales and median price of $185,000 (39.7% short/REO sales- according to Gary Lucido’s data)
  • December 2013: 2137 sales and median price of $210,000
  • December 2014: 2020 sales and median price of $228,000
  • December 2015: 2077 sales and median price of $242,000
  • December 2016: 1974 sales and median price of $260,000
  • December 2017: 2008 sales and median price of $267,500

The time it took to sell a property fell to 60 days from 67 days in December 2016.

Statewide inventory fell 12.3% to 45,825 year-over-year.

“Overall, we saw an active and healthy market in 2017, and are positioned well for the forthcoming spring market,” said Rebecca Thomson, president of the Chicago Association of REALTORS® and vice president of agent development at @properties. “Buyers should expect to see expanded options on the market in the months ahead, but competition will also remain strong as demand outpaces supply and rates remain low.”

30-year fixed-rate mortgages averaged 3.95% versus 4.2% in December 2016. Mortgage rates were stable throughout 2017 and mostly trended under 4%.

Still, everyone in the real estate industry is wondering what will happen with the changes to mortgage and properties tax deductions.

“The forecasts for prices and sales for the first quarter of 2018 remain positive. After adjusting for inflation, prices are now 7 percent higher than pre-recession levels statewide and 9 percent higher in the Chicago PMSA.” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. “A major uncertainty in 2018 is the net impact limitations on state and local tax deductibility and the mortgage interest will have on one hand, with the reduction in tax rates that should increase consumer disposable income on the other.”

Historically, the spring market begins after the Super Bowl but has it already begun in Chicago this year?

December home sales fluctuate, but 2017 Illinois housing market outpaces previous year [Illinois Association of Realtors, Press Release, January 24, 2018]

 

5 Responses to “Market Conditions: Chicago Sales Up Just 1.7% in December 2017 as Statewide Inventory Shrank”

  1. Some more data would be nice (Condo Vs SFH, % New Construction, etc)

    With the chatterati mantra that buyers want “new”, I wonder how much of the gains are due to the Owners spending money on new kitchens/baths/etc

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  2. https://www.illinoisrealtors.org/marketstats/

    They don’t break out new vs. existing homes. Condo prices were up 3.7% but sales were down 5.3%. SFH sales were up 11.9% and prices were up 10%.

    Inventory is down 10.5% from last year and average days on the market for 2017 was 41.

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  3. With the chatterati mantra that buyers want “new”, I wonder how much of the gains are due to the Owners spending money on new kitchens/baths/etc

    I think the mantra is properly described as at a particular price point, buyers expect new. Otherwise you have adjust your asking price accordingly.

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  4. Just posted my January update. Sales declined by the biggest percentage in 18 months. I say 7.5% but IAR will say 10.1%. I’m sure inventory is a big part of the problem. http://www.chicagonow.com/getting-real/2018/02/chicago-real-estate-market-january-worst-sales-decline-in-18-months/

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  5. “Just posted my January update. Sales declined by the biggest percentage in 18 months. I say 7.5% but IAR will say 10.1%. I’m sure inventory is a big part of the problem.”

    Thanks for posting the January update Gary.

    Yes- it’s still super tight inventory. We’ll see if more comes on now that the Super Bowl is over.

    I wonder if more buyers are rushing to get something with the rates rising?

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