Market Conditions: April 2023 Sales Fall 37.6% Year-Over-Year as Inventory Falls Again
The Illinois Association of Realtors is out with the April sales data. It remains at multi-year lows. Sales were at their lowest since April 2020 when the COVID pandemic spooked home buyers and sales ground to a halt.
From the IAR:
The city of Chicago saw a 37.6 percent year-over-year home sales decrease in April 2023 with 2,028 sales, down from 3,249 in April 2022.
The median price of a home in the city of Chicago in April 2023 was $340,000, down 8.1 percent compared to April 2022 when it was $370,000.
Here are the sales statistics for April since 2007:
- 2007: 2419 sales
- 2008: 1886 sales
- 2009: 1407 sales
- 2010: 1984 sales
- 2011: 1466 sales
- 2012: 1816 sales
- 2013: 2392 sales
- 2014: 2256 sales
- 2015: 2435 sales
- 2016: 2706 sales
- 2017: 2647 sales
- 2018: 2700 sales
- 2019: 2595 sales
- 2020: 2057 sales
- 2021: 3360 sales
- 2022: 3249 sales
- 2023: 2028 sales
Here are the median prices:
- 2007: $289,800
- 2008: $300,000
- 2009: $218,000
- 2010: $225,000
- 2011: $169,000
- 2012: $182,000
- 2013: $223,500
- 2014: $250,000
- 2015: $271,325
- 2016: $286,000
- 2017: $297,500
- 2018: $307,500
- 2019: $310,000
- 2020: $338,000
- 2021: $373,750
- 2022: $370,000
- 2023: $340,000
“The data year over year is showing a decline, which is unsurprising given the trends we’ve seen over the last few months. Low inventory, increased inflation and higher mortgage rates are affecting national real estate markets as well,” said Sarah Ware, president of the Chicago Association of REALTORS® and principal and designated managing broker for Ware Realty Group in Chicago. “However, we’re still seeing activity and opportunity for buyers and sellers who were intimidated by last year’s hectic pace.”
Inventory continues to fall.
Statewide, housing inventory fell 23.6% to 17,186 from 22,492 last year. In Chicago, it fell 25.1% to 5007 from 6687 last year.
However, days on the market were up 18.8% in Chicago to 38 days from 32 days last year.
The median sales price mix was also interesting in the quarter. Overall, it dropped 8.1%, or $30,000, to $340,000. But single family home prices were down 15.7% to $295,000 while condo median sales price was up 0.3% to $380,000.
Single family home sales fell 31% in April to 722 while condos were down 40.7% to 1306.
Reminder: median sales price is about the mix.
The average 30-year fixed rate mortgage was 6.34% in April 2023 versus 6.54% in March 2023. Last year, it averaged 4.98% after the Fed started raising rates in March 2022 and rates quickly spiked.
In the next several months, we’re going to start to loop last year’s slowdown as mortgage rates rose. We could even see rising year-over-year sales later this summer as a result.
But will that mean that the housing market is “back”?
Or is the lack of inventory the real challenge to get sales to turn around?
Illinois’ statewide home sales and available housing inventory fall during April [Illinois Association of Realtors, Press Release, by Bill Kozar, May 18, 2023]