Crib Chatter

The Chicago market remains tight, with low inventory. But June sales have now dropped to housing bust levels.

From the Illinois Association of Realtors:

The city of Chicago saw a 15.0 percent year-over-year home sales decrease in June 2024 with 2,235 sales, down from 2,630 in June 2023. The median price of a home in the city of Chicago in June 2024 was $379,925, up 6.3 percent from June 2023 when it was $357,500.

Thanks to G for the historical sales data:

• June 1997: 1,817
• June 1998:  2,214
• June 1999:  2,435
• June 2000: 2,513
• June 2001: 2,451
• June 2002: 2,590
• June 2003: 2,891
• June 2004: 3,752
• June 2005: 3,850
• June 2006: 3,557
• June 2007: 3,127
• June 2008: 2282
• June 2009: 1981
• June 2010: 2526 (tax credit sales)
• June 2011: 1841
• June 2012: 2246
• June 2013: 2729
• June 2014: 2846
• June 2015: 3202
• June 2016: 3321
• June 2017: 3380
• June 2018: 3191
• June 2019: 2850
• June 2020: 2072
• June 2021: 3908
• June 2022: 3393
• June 2023: 2630
• June 2024: 2235

Here is the monthly median price data:

• June 2008: $309,945
• June 2009: $242,050
• June 2010: $234,250
• June 2011: $207,000
• June 2012: $216,700
• June 2013: $254,900
• June 2014: $275,000
• June 2015: $288,250
• June 2016: $299,900
• June 2017: $306,750
• June 2018: $314,900
• June 2019: $319,000
• June 2020: $329,000
• June 2021: $350,500
• June 2022: $367,000
• June 2023: $357,500
• June 2024: $379,925

“Continued inventory shortages are likely impacting closed sales and the median sales price, forcing many buyers to wait to get into the market,” Erika Villegas, president of the Chicago Association of REALTORS® and broker and owner of RE/MAX In the Village said. “Both buyers and sellers should focus on having conversations with local REALTOR® experts to discuss the nuances of their market. A REALTOR® will be able to advise on options to move forward.”

Statewide, inventory finally saw a slight year-over-year gain, rising 1.9% to 19,404 properties from 19,043 last year.

Has the inventory finally found a bottom statewide?

Chicago inventory continued to fall, however, declining 8.6% to 4,826 from 5,281 last year.

Here’s the June inventory for the last couple of years:

• June 2021: 9008
• June 2022: 7883
• June 2023: 5281
• June 2024: 4826

The average 30-year fixed rate mortgage came off the recent highs at 6.92% in June 2024 from 7.06% in May. It’s still above last June, which averaged 6.71%. And it’s certainly above June 2022 where it was 5.52%.

“Prices continued to rise in June,” said Dr. Daniel McMillen, Professor of Real Estate and Associate Dean for Faculty Affairs at the University of Illinois-Chicago College of Business Administration. “Our forecasts indicate that prices will begin their typical seasonal decline over the next three months. The number of sales is forecast to decline also. Surveys indicated that consumer confidence in the economy remains at approximately the same level that it has been for the past few months.”

Number of days on the market until the sale fell 7.4% in Chicago to 25 days from 27 last year.

On the rise in median price, both single family home and condo median rose in June. Single family home median price was up 9% to $865,000 where condo median was up 4% to $390,000.

Is Chicago soon to see a $400,000 median home price?

Illinois home sales fell, median prices reached new high and inventory ticked up in June [Illinois Association of Realtors, Press Release, by Bill Kozar, July 23, 2024]