Market Conditions: May Sales Jumped 5% to Highest Level in 9 Years
The Illinois Association of Realtors is out with the May housing sales data and it’s another hot month.
The city of Chicago saw a 5.0 percent year-over-year home sales increase in May 2016 with 2,887 sales, up from 2,750 in May 2015. The median price of a home in the city of Chicago in May 2016 was $291,000, up 3.6 percent compared to May 2015 when it was $281,000.
May sales:
- May 2008: 2119 sales
- May 2009: 1557 sales
- May 2010: 2057 sales
- May 2011: 1705 sales
- May 2012: 2037 sales
- May 2013: 2834 sales
- May 2014: 2453 sales
- May 2015: 2750 sales
- May 2016: 2887 sales
Median price data:
- May 2008: $319,500
- May 2009: $225,000
- May 2010: $230,000
- May 2011: $190,000
- May 2012: $203,000
- May 2013: $234,000
- May 2014: $269,250
- May 2015: $281,000
- May 2016: $291,000
“Sellers are still seeing healthy median price gains in the Chicago market, particularly in the single-family segment,” said Dan Wagner, president of the Chicago Association of REALTORS® and senior vice president for government relations at the Oakbrook-based Inland Real Estate Group of Companies, Inc. “The 40 days it’s taking to sell a home in Chicago underscores the fast-moving nature of this market and shows that the city is powerfully attractive to buyers.”
The hot market isn’t limited to Chicago. Statewide, inventory continues to drop dramatically as does market times.
“Inventories continue to be tight across the state as buyers scour the market for deals,” said Mike Drews, GRI, Illinois REALTORS® president and broker-associate with Charles B. Doss & Co. in Aurora. “The pronounced demand we have seen for more than a year appears to be setting this selling season up to be one where homes go quickly and for more money, which is a huge advantage for sellers.”
The time it took to sell a home in May averaged 59 days, down from 70 days a year ago. Available housing inventory totaled 62,445 homes for sale, a 15.3 percent decline from May 2015 when there were 73,724 homes on the market.
With these inventory numbers, why aren’t developers building more product?
Where are all the new condo towers?
There have been a few announced in recent months, but these are almost all exclusively at the luxury price point.
Will we see apartment towers converted into condos soon?
May brings strong growth to Illinois sales and prices [Illinois Association of Realtors, Press Release, June 22, 2016]
What about all the planned South Loop development? Or do you consider that luxury?
If you are a buyer and don’t buy now, you will be left out in the cold.
Prices will keep going up and you will be priced out forever. Is that what you really want?
God isn’t making any more land.
Don’t worry with mortgage rates remaining low and the fed’s reluctance to raise rates anymore (thanks Britian!) real estate is going to continue to fly to the sky!
Also Sabrina, when the market turns south will you please post a picture of Chicago’s ‘Shit Fountain’?! (is a real thing in west town)
“God isn’t making any more land.”
Your right God isn’t but Mother Nature and the Chinese are. Every so often an undersea volcano erupts and makes land; and the Chinese are building islands in the south china sea.
There are a bunch of new condo buildings in the worls
9 walton
363 wacker
808 wells
451 grand
4 erie
400 huron
403 wabash
and more
plus we still have leftovers from
legacy and ritz carlton
Mortgage rates are expected to drop to historic lows which should push up prices even further. Kinda regretting selling this spring!
I’ll refinance when the 30 year is under 3% with no points.
“9 walton
363 wacker
808 wells
451 grand
4 erie
400 huron
403 wabash
and more
plus we still have leftovers from
legacy and ritz carlton”
These are all luxury buildings. The vast majority of buyers are not buying in the luxury category.
If land prices have gotten too expensive for “average” condos to be built anywhere in the Green Zone, where does that leave buyers?
Apartment buildings are selling for record highs. $500,000+ per unit. So they would sell the condos for even more (if there were eventually conversions.) That means salaries will really have to soar, or rates have to go down to nearly zero, to make it anywhere “affordable” for most buyers.
I feel like they are overbuilding on the luxury side. The re-sales of luxury condos and SFHs appear to be slowing. When the next recession hits, a lot of developers are going to be sitting there with a lot of $1 million condos to sell. And there will be thousands of $2800 1-bedroom apartments ready to rent.
“I’ll refinance when the 30 year is under 3% with no points.”
At the rate things are going, we could get there!
Just posted my June update. Now we’re at a 10 year record. June up 3.2% but IAR will report it as 0.3%. Still have incredibly low inventory levels. http://www.chicagonow.com/getting-real/2016/07/chicago-real-estate-market-update-home-sales-hit-10-year-high/