The Illinois Association of Realtors is out with December 2015 sales data.
The city of Chicago saw a 0.4 percent year-over-year home sales increase in December 2015 with 2,029 sales, up from 2,020 in December 2014. The year-end 2015 home sales totaled 27,439, up 7.8 percent from 25,461 home sales in 2014.
The median price of a home in the city of Chicago in December 2015 was $242,500, up 6.4 percent compared to December 2014 when it was $228,000. The year-end 2015 median price reached $262,000, up 6.9 percent from $245,000 in 2014.
I’m surprised it wasn’t up more because December 2014 was a little soft. Additionally, the weather was so much better this year.
We have sales data going back 11 years.
- 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: 2029 sales and median price of $242,000
“The Chicago market continues to post strong price gains, reflecting consumer interest in being in a vibrant city and a continuing shortage of available homes from which to choose,” said Dan Wagner, president of the Chicago Association of REALTORS® and senior vice president for government relations for The Inland Real Estate Group. “All indicators are that the momentum we saw in 2015 will bridge over into the new year.”
“The housing market in December behaved in a similar way to its historical pattern,” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. “Activity in both prices and sales was modest but increases were recorded for month-over-month and compared to the same month last year. Consumer sentiment remains positive towards housing purchases with inventory levels perhaps posing problems in some submarkets.”
According to Crain’s, Chicago inventory started January at its lowest level in 9 years, or basically since they started keeping track of inventory.
As of the middle of January, inventory levels remained at 9 year lows.
We’re not yet in the spring selling/buying season. That doesn’t start until February. There’s plenty of time for sellers to begin listing.
Mortgage rates have fallen to 3 month lows and the job market remains strong.
Will the Chicago market be able to post year over year gains in 2016 after 2015’s very strong showing? Or will low inventory hamper sales?
Illinois home prices, prices higher in December; Strong gains seen in 2015 [Illinois Association of Realtors, Press Release, January 22, 2016]