Market Conditions: Chicago April Sales Fall 7.6% But Median Price Jumps 12%
Sales have been slowing for several months in Chicago. After the surge in 2013, it’s not surprising that year over year numbers show a decline.
Remember, it wasn’t until May of 2013 that mortgage rates spiked.
From the Illinois Association of Realtors:
The city of Chicago saw a 7.6 percent year-over-year home sales decline in April 2014 with 2,210 sales, down from 2,392 in April 2013. The median price rose to $250,000 versus $223,250 in April 2013, an annual increase of 12.0 percent.
Here are the sales statistics for April since 2007:
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- 2007: 2419 sales
- 2008: 1886 sales
- 2009: 1407 sales
- 2010: 1984 sales
- 2011: 1466 sales
- 2012: 1750 sales (I have 1750 from last year’s data- not 1816 as IAR says it was)
- 2013: 2392 sales
- 2014: 2210 sales
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Here are the median prices:
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- 2007: $289,800
- 2008: $300,000
- 2009: $218,000
- 2010: $225,000
- 2011: $169,000
- 2012: $184,400 (IAR says it was $182,000 but I have $184,400 from last year’s data)
- 2013: $223,500
- 2014: $250,000
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“Inventory remains at a low across the city of Chicago, creating lower market times and increased sales prices during a time of year when many traditionally are looking to buy or sell,” said Matt Farrell, president of the Chicago Association of REALTORS® and managing partner of Urban Real Estate.
“As buyers navigate their way through the home buying process, it can’t be stated enough that if you see something you like, it won’t likely be available a few days later. Work with your REALTOR® to ensure you have your ducks in a row, and be ready to pull the trigger and make an offer, as the same home will likely be under contract the next time you get back to it,” Farrell added.
Low inventory is still feeding the bidding frenzy in many neighborhoods. But for some properties, such as 1 and 2-bedroom condos in some north side neighborhoods, the market is not so hot.
I’ve been watching quite a few properties sitting there for weeks.
Price still matters for condos.
For single family homes, inventory is almost non-existent in the GZ neighborhoods making bidding wars more common.
Mortgage rates have fallen to 6 month lows but sales are still lackluster. Mortgage applications remain at 19-year lows.
Is the spring/summer buying season already a bust?
Illinois median home prices increase 7.6 percent in April. home sales decrease 7.8% amid tight inventories [Illinois Association of Realtors, Press Release, May 22, 2014]
The downtown market is still hot for condos. There are still investors buying there. I know someone who just sold to a Chinese investor. But the north side neighborhoods aren’t seeing as much of that. That $400,000+ condo is still a tough market.
Single family homes under $1 million in the good school districts on the North Side are a hot commodity though.
Sabrina,
Whats your opinion on Pilsen?
I’ve heard a ton of chatter about it and heard of many investors buying up brick 3-4 flats and tear-down wood houses there.
And the East Pilsen part exploded with “Hipster” types as of late.
“Whats your opinion on Pilsen?”
Pilsen is like Uptown. It’s been “up and coming” for forever. It’s better than it used to be 15 years ago when you still heard gunshots standing on Halsted and 18th though.
But most of East Pilsen is owned by the Podmajersky family which means there won’t be much development there (and those are all loft apartments.) Most of the development pre-bust was happening in West Pilsen which isn’t as desirable.
I believe convenient location of the El. Damen stop specifically on the west Pilsen neighborhood, along with the Walgreen located around there, makes it a prime neighborhood for take over. Rent vs own ratios are ridiculous there.
Commute to DT is 15-20 min long (Shorter then from LP).
I believe there will be many young professionals looking to relocate there soon, because of the high rent prices through out the city.
One thing is missing, is a Starbucks, and maybe a few more bars.
But when they build a SB there, then you know that EVERYONE will flock to it for sure.
Realistically you could be getting 80 -100% ROI in that neighborhood, with half a decent property, but it takes time and skill to find one.
Did they filter the data between distressed sales vs non-distressed sales. I know last month, non-distressed sales were up year over year I believe.