Market Conditions: Chicago November Sales at 12-Year Low as Inventory Sinks
The Illinois Association of Realtors is out with the November sales data.
Inventory continues to decline in Chicago, the Chicago metro, and statewide. As inventory declines, sales have as well. But in November, sales didn’t quite sink to 2010 lows.
The city of Chicago saw a 10.2 percent year-over-year home sales decrease in November 2023 with 1,399 sales, down from 1,558 in November 2022. The median price of a home in the city of Chicago in November 2023 was $322,500, up 5.0 percent in November 2022 when it was $307,250.
Here is the November sales data for the last 15 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: 1399 sales and median price of $322,500
“The housing market is continuing its long-running trend of low sales and relatively high prices,” said Dr. Daniel McMillen, professor of real estate and associate dean for faculty affairs at the University of Illinois-Chicago College of Business Administration. “The trend toward low sales should continue through the winter, which always is a slow time for housing sales in Illinois. However, the recent trends toward lower inflation rates, interest rates, and unemployment rates can be expected to lead to a rebound in the market if the trends continue.”
Statewide inventory fell 22.2%. Here’s what the last few years have looked like in November:
- 2023: 20,568
- 2022: 24,279
- 2021: 27,692
The average number of days on the market statewide was 27 days versus 31 last year.
In Chicago, there is a similar trend. Inventory fell 25.1%.
- 2023: 5226
- 2022: 6978
- 2021: 7837
Average number of days on the market also fell to 33 days from 35 days.
“In November, steady median sales prices combined with slowing closed sales were symptoms of continued inventory shortages,” said Drussy Hernandez, president of the Chicago Association of REALTORS® and vice president of brokerage services for Coldwell Banker Realty in Chicago. “Also, the decrease in single family home sales in comparison to condo sales showed that buyers were finding more success, and inventory, in the condo market.”
In Chicago, single family homes sales fell 14.2% to 584. Condo sales fell 7.1% to 815.
Condo median price was up 6.2% to $345,000 while single family home median price rose 4.7% to $302,450.
Average 30-year fixed rate mortgage was 7.46% in the month, down from 7.62% in October but up from 6.81% in November 2022.
Number of days on the market is falling in Chicago and statewide. It’s a triple combination of low inventory, rising prices and lots of competition for new properties.
Is the spring buying season, which normally starts after the Super Bowl, going to start on January 2 this year?
A lack of available housing for sale hampered November home sales in Illinois [Crain’s Chicago Business, Press Release, by Bill Kozar, December 20, 2023]
Inventory continued to drop heading into 2024.
Currently, as of Jan 1, 2024, there were just 149 properties on the market in Lincoln Park. That is the lowest of this cycle. An incredible number to see.
In Lincoln Park, one of the densest neighborhoods in the city, there are just 141 properties. OMG.
If you have something to sell, I’d be listing it this week. Why not? There is virtually NO competition.
“If you have something to sell, I’d be listing it this week. Why not? There is virtually NO competition.”
Unless you’re paying cash and have a home under contract, you would have to be a moron to be selling (Barring a life changing event)
Can you imagine buying a home in Nov 2021 and it be worth LESS in 2 years in one of the largest run up in real estate prices in history? Buy property anywhere else but Chicago. Real estate taxes constantly go higher and will do so even more to pay for the union pensions that are bankrupting the city.
“Can you imagine buying a home in Nov 2021 and it be worth LESS in 2 years in one of the largest run up in real estate prices in history?”
Where’s that?
Chicago is one of the few markets nationwide that actually saw home prices RISE in 2023. Most other markets are contracting again, as they should. Too much, too quick. Affordability an issue in many markets with these mortgage rates. Some cities will likely see 10%+ declines in prices.
“Unless you’re paying cash and have a home under contract, you would have to be a moron to be selling (Barring a life changing event)”
People are moving all the time. Life happens. And 40% of home owners own their home outright (no mortgage). They can do whatever they want.
Again: if I were going to sell in 2024, I’d be listing right now. I have a friend who sold late last year and it went under contract in just 2 weeks because there was no other competition.
“Again: if I were going to sell in 2024, I’d be listing right now. I have a friend who sold late last year and it went under contract in just 2 weeks because there was no other competition.”
Not what you said