Market Conditions: April Sales Up 5.5% YOY: Is the Bottom in Sales Finally In?
The April sales data is out from the Illinois Association of Realtors.
Inventory remains near record lows in Chicago. But sales appear to have bottomed for this cycle as they jumped 5.5% year-over-year in April.
The city of Chicago saw a 5.5 percent year-over-year home sales increase in April 2024 with 2,189 sales, up from 2,074 in April 2023. The median price of a home in the city of Chicago in April 2024 was $370,000, up 8.8 percent from April 2023 when it was $340,000.
Here are the sales statistics for April since 2007:
- 2007: 2419 sales
- 2008: 1886 sales
- 2009: 1407 sales
- 2010: 1984 sales
- 2011: 1466 sales
- 2012: 1816 sales
- 2013: 2392 sales
- 2014: 2256 sales
- 2015: 2435 sales
- 2016: 2706 sales
- 2017: 2647 sales
- 2018: 2700 sales
- 2019: 2595 sales
- 2020: 2057 sales
- 2021: 3360 sales
- 2022: 3249 sales
- 2023: 2074 sales
- 2024: 2189 sales
Here are the median prices:
- 2007: $289,800
- 2008: $300,000
- 2009: $218,000
- 2010: $225,000
- 2011: $169,000
- 2012: $182,000
- 2013: $223,500
- 2014: $250,000
- 2015: $271,325
- 2016: $286,000
- 2017: $297,500
- 2018: $307,500
- 2019: $310,000
- 2020: $338,000
- 2021: $373,750
- 2022: $370,000
- 2023: $340,000
- 2024: $370,000
“In April, closed sales and median sales price increased, which are signs of an active spring season and consistent with historical trends this time of year,” Erika Villegas, president of the Chicago Association of REALTORS® and broker and owner of RE/MAX In the Village said. “Sellers considering listing may want to make plans to act quickly in a pinched inventory market and buyers should talk to their REALTORS® about multiple offer scenarios in a competitive Chicago market.”
It still remains difficult to buy a single family home versus a condo. Sales of single family homes fell 1.6% to 726 while condo sales were up 9.5% to 1463.
Median price of single family homes soared 14.3% to $340,000 whereas condo median price was up just 1.3% to $385,000. But, remember, median price is about the mix.
“It is pleasing to see the increase in home sales from a year ago, but interest rates and the limited numbers of homes available for sale are still a major concern for consumers right now,” says Matt Silver, Illinois REALTORS® 2024 President and partner and senior broker for Corcoran Urban Real Estate in Chicago. “We are trying to work with elected officials at every level to provide incentives and take other steps to increase the number of affordable, available homes in Illinois.”
Statewide, inventory was at the second lowest in the last 16 years, which is when the data was first collected. 16,403 homes were available in April 2024, down 5.3% from 17,322 last year.
For comparison, statewide inventory was 56,094 homes in April 2019.
However, April 2024 was up from March 2024 when it was 15,988. March 2024 was the lowest level for statewide inventory since 2008.
In Chicago, inventory continued to decline. It fell 9.4% to 4,495 homes from 4,964 homes last year. There doesn’t appear to be a bottom yet in falling inventory.
- April 2021: 8,502
- April 2022: 6,681
- April 2023: 4,964
- April 2024: 4,495
Days on the market fell 18.4% year-over-year to 31 days from 38 days. However, last year it was the complete opposite. Days on the market jumped 18.1% to 38 days from 32 days in 2022.
Days on the market has hovered around 30 days throughout this cycle so I don’t consider April’s data to be out of the norm.
Average 30 year fixed mortgage rate rose to 6.99% in April from 6.82% in March. It’s also higher than last year when it was 6.34%.
After 2 years of mortgage rates over 6%, Chicago buyers have seemed to have adjusted.
Inventory in the GreenZone, which are among the most in-demand neighborhoods in Chicago, remains near record lows.
As of May 31, 2024:
- Lincoln Park: 201 properties
- Lakeview: 234 properties
- Bucktown: 72 properties
- Andersonville: 34 properties
- West Loop: 178 properties (includes east of the expressway per Redfin)
- River North: 371 properties
There are currently no new condo buildings under construction downtown. New buildings were always a source of more inventory but for the next several years, there isn’t going to be any.
Will Chicago home prices keep rising due to lack of inventory?
Illinois home sales rose in April despite lagging inventory [Illinois Association of Realtors, Press Release, by Bill Kozar, May 22, 2024]