Market Conditions: June Sales Tumble 1.7% But Still Near 10-Year High
The Illinois Association of Realtors is out with the June numbers. It was another strong month as last year, June was the strongest since 2006.
The city of Chicago saw a 1.7 percent year-over-year home sales decline in June 2017 with 3,266 sales, down from 3,321 in June 2016. The median price of a home in the city of Chicago in June 2017 was $308,000, up 2.7 percent compared to June 2016 when it was $299,900.
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: 3266
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 2071: $308,000
Inventory continues to be a problem and is likely holding back home sales from being even more vigorous.
“While the housing market continues to record gains in prices and sales, the inventory problem remains an important issue,” said Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois. “Hopefully, now that the state has a budget, a recovering state economy will encourage more investment in housing – both new construction and investment by first-time buyers.”
“In June, the market exhibited a bit of a holding pattern,” said Matt Silver, president of the Chicago Association of REALTORS® and partner at Urban Real Estate. “Inventory was a contributing factor, as once you sell your home, you’ll need to then buy another – so, sellers are being firm on their pricing, and while some buyers are willing to wait for their perfect home, other motivated buyers are driving down the time on market. As the weather continues to heat up, people will get down to business, provided the price is right.”
30-year fixed mortgage rates continue to be higher than a year ago. They averaged 3.9% in June 2017 compared with 3.57% last year.
The fall market is fast approaching.
Will we see the hot summer sales extend into the fall?
Illinois median prices climb in June while home sales hold steady [Illinois Association of Realtors, July 24, 2017, Press Release]
So this June actually ended up exceeding last June. As I’ve pointed out in the past they are comparing preliminary numbers for this June to final numbers for last June. Even now the numbers for this June are not totally final but they are already at 3348.
median price data:
June 2071: $308,000
I’m betting that’s low by at least half!
“So this June actually ended up exceeding last June.”
Yes. When the “real” numbers are in it will exceed last year. And that’s on lower inventory.
It’s not a surprise that prices are soaring.
Looks like July is really going to suck. I’ll post my update on Monday.
July sucked for autos too. Wonder if there is a bigger trend going on. Everyone who wants or qualifies for a house or a car has already bought one.
https://fred.stlouisfed.org/graph/?id=TOTALNS,SLOAS,MVLOAS,REVOLNSEC,REVOLSL,
is 6%+ credit growth per year sustainable without similar income growth?
Of course, months of inventory also declined quite a bit.
“Looks like July is really going to suck. I’ll post my update on Monday.”
Lack of inventory Gary?
It still seems like some properties are selling almost instantly but a little of the fever seems to be missing.
It’s not surprising for the market to slow some by July, though. By then, everyone moving for the new school year will have moved already. This doesn’t impact condos quite as much.
Lack of inventory almost certainly an issue. Sales are compared to last July so I’m not talking about a mere seasonal effect.
Just posted my July update. Didn’t suck nearly as badly as I thought it would but sales were still down – and probably due to low inventory. http://www.chicagonow.com/getting-real/2017/08/chicago-real-estate-market-update-weakest-july-in-5-years/