Crib Chatter

The Illinois Association of Realtors is out with the November 2024 sales update for the state, suburbs and city of Chicago.

Sales remain near housing bust lows thanks to low inventory.

From the IAR:

The city of Chicago saw a 3.7 percent year-over-year home sales increase in November 2024 with 1,481 sales, up from 1,428 in November 2023. The median price of a home in the city of Chicago in November 2024 was $365,000, an increase of 13.0 percent from November 2023 when the median price was $323,000.

Here is the November sales data for the last 17 years (thanks to G for some of the data):

• 2007: 1859 sales and median price of $290,000
• 2008: 1093 sales and median price of $222,500 (16% short/REO sales)
• 2009: 1905 sales and median price of $215,000 (29% short/REO sales)
• 2010: 1144 sales and median price of $182,500 (39% short/REO sales)
• 2011: 1429 sales and median price of $157,000 (43% short/REO sales)
• 2012: 1750 sales and median price of $180,000
• 2013: 1844 sales and median price of $200,000
• 2014: 1638 sales and median price of $230,000
• 2015: 1661 sales and median price of $233,500
• 2016: 1937 sales and median price of $260,000
• 2017: 1959 sales and median price of $256,000
• 2018: 1852 sales and median price of $261.745
• 2019: 1671 sales and median price of $270,000
• 2020: 2018 sales and median price of $295,000
• 2021: 2396 sales and median price of $327,000
• 2022: 1558 sales and median price of $307,250
• 2023: 1428 sales and median price of $323,000
• 2024: 1481 sales and median price of $365,000

“In November, closed sales increased slightly, while inventory continued to decrease and median sales price increased,” Erika Villegas, president of the Chicago Association of REALTORS® and broker and owner of RE/MAX In the Village said. “Lower interest rates over the last few months expanded buyers’ purchasing power, so anyone looking to list their home should take a critical look to ensure it’s ready for sale.”

Statewide inventory rose 2.3% to 20,863 properties from 20,401 properties in 2023.

Here’s what the last few years have looked like in November:

• 2021: 27,692
• 2022: 24,279
• 2023: 20,401
• 2024:20,863

In Chicago, the inventory decline hasn’t yet abated. Inventory plunged another 12.3% to 4,557 properties from 5,198 properties last year.

• 2021: 7,837
• 2022: 6,978
• 2023:5,198
• 2024: 4,557

Market time in Chicago fell a day to 32 days from 33 last year.

Average 30-year fixed mortgage rates rose in November from October 2024 to an average of 6.81% from 6.43%. This November was still well under the average rate last year in November which was 7.44%.

Housing analysts are bullish about single family home price appreciation in Illinois to start 2025.

“Our three-month forecast expects statewide closed sales activity through February to be on par with levels seen through February 2024, while house price growth is expected to remain strong with prices of single-family homes anticipated to increase by nearly 10 percent through February 2025 compared to the previous year,” said Geoff Smith, Executive Director, Institute for Housing Studies at DePaul University in Chicago.

“Looking at broader market conditions, despite tight inventories, continued high mortgage interest rates, and general affordability concerns, consumer housing sentiment is improving. Fannie Mae’s most recent national housing survey shows increasingly positive perceptions of the housing market largely driven by a growing share of consumers who believe mortgage interest rates will decline over the next year.”

In Chicago, condo median price was up 15.9% to $400,000 in November while single family home median price rose 12.6% to $339,951. That averaged out to $365,000 for the month, the highest for November since I began this blog in 2007.

Just a reminder that median prices reflect the mix.

Will Chicago’s housing market remain tight in 2025?

November Illinois home sales, median prices and available homes all go up for second straight month [Illinois Association of Realtors, Press Release, December 19, 2024]