The impact of low inventory was apparent throughout the second half of 2017, and we expect it to have a similar effect going forward unless inventory expands.
CHICAGO (PRWEB) February 23, 2018
January home sales in the metropolitan Chicago area declined slightly from the prior year’s pace, as colder weather and a shrinking selection of homes for sale suppressed market activity, RE/MAX reports. Nonetheless, demand for homes remained solid, as demonstrated by rising home values and faster sales times.
Home sales in the seven-county metro area totaled 5,707units in January, 6.9% less than the same month last year. The median sales price gained 7.1% to $225,000 and the average time homes sold in January spent on the market was 95 days, four days less than in January 2017.
“January sales in 2016 and 2017 were buoyed by relatively mild weather in the Chicago area,” noted Jeff LaGrange, Vice President, RE/MAX Northern Illinois Region. “This year, we had a much more normal January temperature wise. Our experience is that especially in the first quarter of the year, home sales are strongly influenced by temperature trends, so fewer sales in January often mean more sales in February or March.”
LaGrange also pointed to the continuing decline in the inventory of listings for sale as a factor in restraining total sales, with total listings falling 8.6% compared to the year-earlier level.
“The impact of low inventory was apparent throughout the second half of 2017, and we expect it to have a similar effect going forward unless inventory expands. The number of homes for sale in the Chicago area was 20% lower at the end of January this year than at the same point in 2016,” he explained.
The home sales data used for the RE/MAX analysis is collected by MRED, the regional multiple listing service. It covers detached and attached homes in the Illinois counties of Cook, DuPage, Kane, Kendall, Lake, McHenry and Will. Detached homes are typically stand-alone, single-family dwellings. Attached homes include condominium and cooperative apartments along with townhouses.
Sales activity fell in six counties, but did gain 1% in DuPage. Sales declines were 8.3% in Cook, 8.5% in Kane, 2.4% in Kendall, 3.7% in Lake, 13.6% in McHenry and 6.4% in Will. Chicago saw sales fall 7.7%.
The situation was essentially reversed when in came to the median sales price, with six countIes and Chicago showing January gains, while Lake County had a 4.4% decline that largely reflected a change in the mix of attached and detached units sold.
The median price gained 7.1% in Cook and 3.9% in Chicago, 3.2% in DuPage, 6.9% in Kane, 16.4% in Kendall, 12.5% in McHenry and 13.5% in Will.
Average market time fell in all seven counties and in Chicago, but only Will had a double-digit decline, with homes selling 11 days more quickly this January than last.
Detached Home Sales
Despite an 11.1% decline in month-end inventory, January sales of detached homes were off just 4.2% to 3,743 units, and the median sales price gained 6.7% to $239,900 in the metro area.
Sales increased 8.9% in Kendall, 6% in DuPage and 0.1% in Chicago, but fell 9.4% in Kane, 7.1% in Lake, 6.7% in McHenry, 5.2% in Cook and 3.5% in Will.
The median sales price gained in Chicago and six counties, while falling a minimal 0.2% in Lake. The largest increase was in Cook, which had a 9.8% increase, including a 9.2% gain in Chicago. Other gains were 6.7% in Kane and Will, 6.6% in McHenry, 3.8% in DuPage and 22% in Kendall.
Attached Home Sales
The attached home market benefited from a relatively small decline in inventory, as new construction of multifamily buildings shored up the supply of condominiums. Nonetheless, January sales were off 11.6%, while the median price for the month was $197,000, a 10.4% gain compared to the same month last year. The average market time fell to 77 days in January 2018 from 84 days a year earlier.
Sales activity increased only in Lake, up 8.3%, while falling elsewhere. January sales were off 12.3% in Cook, including a 13.7% dip in Chicago. Cook County accounted for more than two-thirds of the attached home market in the metro area.
The median sales climbed in all seven counties and Chicago, led by gains of 24.1% in Kendall and 16.5% in Will. The median price gained 3.4% in Cook and 3.5% in Chicago.
RE/MAX Northern Illinois has been the leader in the northern Illinois real estate market since 1989 providing a full range of residential and commercial services. With more than 2,200 sales associates and 105 offices throughout the area, RE/MAX Northern Illinois has helped thousands of families with their home buying and selling needs. For more information, visit illinoisproperty.com or download the Illinois Property mobile real estate app.
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