We all know the March sales data was good, at least compared to the last few years. But there were some surprises in the data.
From the Illinois Association of Realtors:
The city of Chicago saw a 13.8 percent year-over-year home sales increase in March 2013 with 1,894 sales, up from 1,664 in March 2012.
The median price of a home in the city of Chicago in March 2013 was $187,500 up 9.0 percent compared to March 2012 when it was $172,000. Chicago condo prices also saw strong gains for the month, posting a 9.3 percent jump to $235,000.
Data since 1997 provided by G:
City of Chicago condo/TH/SFH closed totals March
year/closed/median/% REO-Short Sales
Year Closed Median %REO/SS
1997 1,226 $126,875
1998 1,540 $137,003
1999 1,766 $152,125
2000 1,793 $167,500
2001 1,800 $195,000
2002 2,112 $210,000
2003 2,261 $225,000
2004 2,772 $244,950
2005 2,822 $271,125
2006 3,000 $275,862
2007 2,399 $285,000
2008 2,098 $300,000
2009 1,219 $217,000 37%
2010 1,860 $207,750 38%
2011 1,481 $163,763 49%
2012 1,630 $170,500 44%
2013 1,894 $187,500 76%??
As anyone who is looking to buy already knows, the inventory is pathetic. It’s worse than even the winter inventory and that’s saying a lot.
“It is an excellent time for sellers to move their homes quickly, if priced well in what’s fast become a thriving market,” said REALTOR® Zeke Morris, president of the Chicago Association of REALTORS® and Operating Principal and Managing Broker, Keller Williams Realty, CCG. “The city’s housing inventory in March was down 45 percent compared to the same time last year. Data tells us that buyers are taking advantage of this period when homes are still priced attractively and interest rates are low, concerned that it might not last. This creates an urgency among buyers that is promising for sellers ready to act.”
Market times are also falling. We’ve all seen plenty of listings on this site that are selling within days.
From the Chicago Tribune:
Within the city, the market’s pace picked up more so. It took an average of 70 days to sell homes that closed last month, a decline of almost 25 percent from the 93 days in March 2012.The number of homes listed for sale in the city last month totaled 7,813 properties. That compares with 14,358 listings in March 2012.
But what about the number of distressed properties? The last few months, the percent of sales that were distressed was apparently falling.
But according to the Tribune, that wasn’t the case in March. In fact, I’ve never seen the percentage this high before. 76%???
Despite the continued improvement in pricing year-over-year, median prices remain well off their historical highs. Within the city of Chicago last month, 76 percent of the home sales that closed in March distressed sales, either foreclosures or short sales.
“The inventory in both the state and Chicago markets suggest that demand has begun to return to the housing market,” said Geoffrey J.D. Hewings, director of University of Illinois’ regional economics applications laboratory, in a statement. “However, foreclosed properties are accounting for a sizable portion of these sales. The good news is that foreclosed sales are outpacing new additions to the foreclosure inventory but at a cost of dampening median price increases.”
Could that data about the percentage of distress sales be correct?
If it is, how is this housing market “normal”?
Illinois home prices post gains; sales continue double-digit increases in March [Illinois Association of Realtors, Press Release, April 22, 2013]
Chicago housing has busiest March in 5 years [Chicago Tribune, Mary Ellen Podmolik, April 22, 2013]