Market Conditions: July Housing Sales Up 1.1% But is the Chicago Market Slowing?
The Illinois Association of Realtors is out with the July housing numbers.
The city of Chicago saw year-over-year home sales increase 1.1 percent with 2,728 sales in July, compared to 2,698 a year ago. The median price of a home in the city of Chicago in July was $309,000 up 3.0 percent compared to July 2017 when it was $300,000.
Here’s the July data since 1997 (thanks, once again, to G for the historic info):
- 1997: 1,694
- 1998: 2,139
- 1999: 2,186
- 2000: 2,013
- 2001: 2,410
- 2002: 2,661
- 2003: 3,105
- 2004: 3,429
- 2005: 3,487
- 2006: 3,088
- 2007: 2,819
- 2008: 2,200
- 2009: 2,040
- 2010: 1,631
- 2011: 1,666
- 2012: 2,088
- 2013: 2,902
- 2014: 2,725
- 2015: 3,082
- 2016: 2,780
- 2017: 2,698
- 2018: 2,728
“This July outpaced last year’s, with a higher number of closing sales further contributing to the shrinking pool of inventory,” said Rebecca Thomson, principal of Thomson Real Estate Group and president of the Chicago Association of REALTORS®. “The summer market has some staying power, and if July’s numbers are any indication, buyers should expect a competitive market with fewer options, limited time to make decisions and steadily increasing prices.”
The average on a 30-year fixed mortgage was 4.53% in July which was considerably higher than the prior two years which saw average rates of 3.97% in 2017 and 3.44% in 2016.
Statewide, market times continued to fall:
- 2016: 53 days
- 2017: 47 days
- 2018: 44 days
“Inventory on the market continues to fall in both Illinois and Chicago while pending sales continue to show strong increases,” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. “Longer-term consumer sentiment reflects the ongoing uncertainty about the outcome of trade negotiations although shorter-term sentiment continues to be positive.”
This is the second month in a row that they mentioned the trade negotiations.
Is it really that big of a deal to home buyers and sellers?
I realize the farmers are really being impacted, but are they putting off home buying?
Median price for July also continues to rise:
- 2016: $290,000
- 2017: $300,000
- 2018: $309,000
What’s going on with the Chicago market?
It feels like it’s slowing even though there’s still record low inventory and the job market is still great.
Is everyone renting instead?
Illinois home sales inch up in July; listings continue to sell at a quick pace [Illinois Association of Realtors, Press Release, August 22, 2018]
The rolling 12 month average of sales has been slowly drifting down for months. And contract activity has also been drifting down, indicating that more declines are coming. But because inventory is so low and market times are still fast I don’t think you can say the market is slowing. What’s more troubling is that the condo/ townhome inventory is starting to rise. Still low but rising. But buyers have trouble finding stuff.
As a July buyer and hopeful seller, there still seems to be a lot of activity. While we would have rather been on the market earlier in the year, this isn’t a bad time. One observation – buyers are looking at a lot of places it seems rather than focusing on a certain location and type of property. Here’s what we are selling:
https://www.redfin.com/IL/Chicago/2236-W-Armitage-Ave-60647/unit-404/home/12716510
Oh, please be kind as to our listing.
Thanks cribchatters!
I know better than to put my listing on here lol! Although I suspect some of you internet detectives on here already know about it. Nice place though Jon, wish I had more interior decorator gene in me. Well that and no dogs so I could buy newer furniture.
It has been slower lately though, we had a ton of showings early on and some interest but only one lowish offer so far, we aren’t in a huge hurry so thats a good feeling, but I do want to get outta this place before winter thats for sure.
Sonies – Ha! I knew it was a risk, but oh well.
Good luck with your place as well.
“interior decorator gene”
I don’t understand how you lived with the garage like that, but maybe I’m the weirdo.
what, unpainted? I never got around to it… Or just stuffed with 2 cars and a few random things? The floor is awesome though
“unpainted?”
yep. Would’ve gotten a bucket of primer and slpped that up at least.
I’m not a fancy garage (or storage room) guy, but that would make me nuts, with the fix so relatively easy. And I *know* you aren’t afraid of a little painting.
I appreciate the feedback 🙂 And by the way, that’s a wrap, not paint!
Jon
I was all set to rip on your place (Joking) until I saw the outdoor area – Absolutely killer
Seems like a decent deal compared to some of the schlock posted.
Good luck
“that’s a wrap”
On the garage walls? [confused]
And I do mean only the wallboarded sections. And my garage has no wallboard, but if it did…
ha no, nevermind… Yeah thankfully they wallboarded it… house came with some just flat out terrible 2x CFL bulb lights, so I fixed that at least with some 4′ x2 LED tube lights
Like I said, I just never did it, was totally planning on it though as it was on the list. Still might not bother as we are getting close to under contract with a buyer
Anything else you’d quick fix?
The grass in your neighbor’s front yard?
Nah, looks good, tho it’s harder to spot minor bad stuff in newer places. Your buyers will probably have a couple thing on their inspection list, and miss some thing that you would have on yours, so I think it’d be a waste to do anything unless your sitting in the same place in a month.
Were you staying, I’d 100% recommend turfing the grass areas, since it seems a challenge to get it to grow nicely.
btw, yes, I was surprised to see that you drive a Red Bull car, but I’m so conditioned by Sabrina’s admonitions, that I totally glossed over that.
“What’s more troubling is that the condo/ townhome inventory is starting to rise. Still low but rising. But buyers have trouble finding stuff.”
———————-
Why do you think that is? Sellers not being flexible in pricing? “Wrong” categories of condos/townhomes coming onto the market given current tastes?
some neighbors have turf and I think it looks horrid… Ive been watering the grass every day it looks pretty nice now, with just a few small spots lookin bad. Really needs a sod job next year for true perfection… the pics also seem a bit overexposed or something with the editing. thanks for the critique… yes neighbors yard and deck look unsightly but its a chinese famipy that keeps to themselves.
“some neighbors have turf and I think it looks horrid”
A lot of it does. The good stuff looks real until you are quite close, and even then looks pretty good.
Sonies, how come some of the homes in your community are allowed to build out their entire rooftop, while it appears your building only has 1/2 completed rooftops?
Friends of ours (with children) paid a premium for a magazine-ready 3 bedroom unit without outdoor space (though the building has a large, shared courtyard and pool) over a modern but not completely updated unit in the same building with a large, private outdoor area for the same price. In turn, they listed their modern, but not completely updated, two-bedroom unit about 15K below others in the area and it went contingent right away.
I’ve been noticing large-ish price drops on properties I’ve been following in my hood.
“Sonies, how come some of the homes in your community are allowed to build out their entire rooftop, while it appears your building only has 1/2 completed rooftops?”
everyone is allowed to build their rooftops out, I chose not to as I use my front and side yard so much more often, its stupid hot up on the roof and well it was an expensive builder and aftermarket option so I passed on it
“Why do you think that is? Sellers not being flexible in pricing? “Wrong” categories of condos/townhomes coming onto the market given current tastes?”
I’m not sure. Caught me by surprise. Clearly stuff that doesn’t move is overpriced but I don’t know if it was obvious before the fact that it was overpriced.
“and well it was an expensive builder and aftermarket option so I passed on it”
——————-
Double check re after-market flooring and with independent contractors. I hd an aunt who bought in River Edge (immediately North and West of Foster and Pulaski, behind the Jewel and “Mayfair Commons” strip mall) — (part of “North Mayfair” and note the quote marks). Developer wanted $7500 for oak hardwood for dining and living rooms. She waited 3 years (carpet instead) and got both done, with trim, matching the kitchen oak floor exactly, for under $3,000.
You may surprise yourself.
You may surprise yourself.
No point Since Sonie is selling. Would love to see the pictures but I understand the need to limit the Internet detectives.
Good luck
Yeah I’m selling so I don’t really care, especially not enough to drop $20k on something I won’t even use… btw it was a $35k builder option… which you had to pay cash for 6 months before closing… oof
I spent that money on shades, nice closets, and expensive light fixtures and well lots of other crap instead because when you buy a new house its not exactly “done”
As a Realtor, I wonder if there’s a sense of boredom/ennui/seen-that-already among buyers, that is slowing the market this year. Many “new listings” for 2018 are houses and condos that were originally put on the market in the bubble years and reflect the architectural and design fads of that time. Now that we’re through most of the downturn, and many owners are no longer “under water” with their 10-year-old houses, they are going on the market. But there are only so many 2-bed 2-bath condos with all the 2006 bells-and-whistles that a new buyer can see before they burn out and decide that “this is all that’s out there in our price range, and they all look alike, so why bother?” At least that’s the sense that I’m getting from a number of my potential clients.
I personally think the newest / latest crop of buyers is unrealistic. You buy what you can afford but people increasingly have caviar tastes on hot dog budgets. Previous waves of buyers bought fixer uppers, dated units, personalized them, put sweat equity into their homes over the years, took their time and fixed up as they could. Now people just want to press a button and it’s done for them, it’s completely unreasonable, and they have no idea the true hard costs of remodeling. Also prices do seem a little too high imho so maybe buyers are demanding more to justify these high prices. We could be looking at an epic stalemate between the NAR and media hype machine vs cold hard reality in which case I will glady go make some popcorn.
I must have been gone for a while. Sonies lives in a SFH? When did this happen. And no I won’t be looking to find your listing or who you are. Some things in life I just don’t want to know the answer to.
no just a townhouse, although its only 2 stories so it kind of lives like a SFH 😉
and come on who you crappin!
“and come on who you crappin!”
I’m serious, I got too much other stuff going on to scour redfin looking for a town home for sale, from a person I don’t know, in a neighborhood I don’t live in, for a price I can’t afford.
“As a Realtor, I wonder if there’s a sense of boredom/ennui/seen-that-already among buyers, that is slowing the market this year. Many “new listings” for 2018 are houses and condos that were originally put on the market in the bubble years and reflect the architectural and design fads of that time.”
Good points Gayle.
Additionally, many buyers of the 2/2s are already living in “luxury” apartments, some with Snaidero cabinets and quartz counter tops. Are they willing to move out of there to a condo that has the old dark cabinets with brown/black granite counter tops and bathrooms that haven’t been touched since the 2005 construction?
Doubtful.
open house I had over the weekend was one of my realtor’s “best ever” in his 12 year career, so thats good I guess? The dog days of summer are rough!
“It has been slower lately though, we had a ton of showings early on and some interest but only one lowish offer so far, we aren’t in a huge hurry so thats a good feeling”
“Still might not bother as we are getting close to under contract with a buyer”
Not entirely following this.
“open house I had over the weekend was one of my realtor’s “best ever” in his 12 year career, so thats good I guess?”
Pretty sure those were all cribchatter gawkers.
“scour redfin looking for a town home for sale, from a person I don’t know, in a neighborhood I don’t live in, for a price I can’t afford.”
Do you even understand how the chatter works? That’s virtually the mission statement.
“Pretty sure those were all cribchatter gawkers.”
that was my theory as well… lol
“Not entirely following this.”
yeah me either… we actually have a few offers now so I’m definitely not painting the garage!
“that was my theory as well… lol”
If I ever have to sell, will need to figure out a way to do it without having people in my home. Thought of having people in my place is v unpleasant (dunno how Jenny would ever allow it). Maybe I’d just have to move out and be done with it before selling. Maybe VR will be functional by then.
“Thought of having people in my place is v unpleasant”
yes it super sucks ass! Had a showing last night at 8:30pm… wtf man! Its mostly a chore for me because I have to get the dogs out of the house, not like I can really go anywhere fun or just leave for the night
“yes it super sucks ass! Had a showing last night at 8:30pm… wtf man! Its mostly a chore for me because I have to get the dogs out of the house, not like I can really go anywhere fun or just leave for the night”
and they’re almost certain to stick your toothbrush up their ass or something.
Just posted my August update. Looks like sales were down again, though there are some issues with the data posting so the numbers might improve a bit. But it looks like August sales were down 3.2% (5.8% according to the IAR). Tight inventory still, though condo inventory is rising. http://www.chicagonow.com/getting-real/2018/09/chicago-real-estate-market-update-disappointing-august-home-sales/
I’m thinking sales will continue to be soft for several more months.
“I’m thinking sales will continue to be soft for several more months.”
Thanks for the data Gary.
Something has changed. At least in the condo market. While the market usually quiets down by the summer, this year, by August, it was dead. There are buyers looking, but no one is pulling the trigger.
And I’ve heard from some agents that they have properties that are going for weeks without even a look. In the Greenzone, no less.
So bizarre. Mortgage rates aren’t that high and the job market is still very strong.