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Metro Chicago Real Estate Market Saw Faster Sales of Fewer Homes in August, Median Price Increased
August home sales in the metropolitan Chicago real estate market continued to show the impact of a limited supply of property listings.
The most obvious result of the limited inventory has been the rapid pace at which homes are selling. Residences sold in August were on the market for an average of 66 days before finding a buyer, down from 76 days a year earlier. The August average matched that recorded in July, which was the lowest average market time for any month since RE/MAX began tracking that data in 2005.
"The inventory situation doesn't appear to be improving yet," noted Jack Kreider, executive vice president and regional director of RE/MAX Northern Illinois. "As was the case in July, the August inventory decline was most pronounced among detached homes. Those listings dropped 8.7 percent, while listing of attached homes fell 5.1 percent."
However, he also pointed out that a declining inventory doesn't necessarily mean fewer sales.
"One example of that was in Kane County where August sales were up 2.5 percent although the inventory there declined 12.7 percent and represented less than a three-month supply of homes. In contrast, sales fell 2 percent in Chicago, but the inventory rose 3.4 percent from last August, and there was a 3.2-month supply of homes," Kreider reported.
Sales data used by RE/MAX 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.
August sales were lower in five of the seven metro counties and in Chicago, with McHenry joining Kane in recording a modest increase. The median sales price advanced in five counties and Chicago, led by increases of 12.3 percent in Lake and 10.3 percent in Kane. Other gains were 4.7 percent in Cook, 1.9 percent in DuPage, 6 percent in Will and 4.1 percent in Chicago. The median was unchanged in McHenry and fell 2.7 percent in Kendall.
Average market time was under 70 days in six counties and Chicago, with the 83-day average in Lake being the one exception. Kendall had the lowest overall average at just 49 days.
Sales of distressed properties, including foreclosures and short sales, continued to dwindle as a factor in the metro market, accounting for only 7.5 percent of all August sales compared to 12.2 percent a year earlier.
Sales of attached homes were only slightly slower in August than they had been a year earlier, falling 1.7 percent to 4,213 units. The median sales price rose 7.8 percent to $204,900 and average market time fell to a speedy 51 days.
"Demand for attached units appears especially brisk in some suburban areas," said Kreider. "Sales volume rose 20 percent in McHenry and 19 percent in Will. Average market times were under 50 days in five of the suburban counties, including an average of just 19 days in Kendall."
The median sales price rose in six of the seven counties and in Chicago, but was unchanged in Kendall. The sharpest increases were 8.7 percent in Will, 8.3 percent in Kane and 7.9 percent in Cook.
"Attached homes, whether condos or townhouses, are often a moderately priced alternative for those who want to buy but are frustrated by the limited supply of affordable listings in the detached market," noted Kreider.
RE/MAX agents consistently rank among the most productive in the industry. In 2016, RE/MAX Northern Illinois agents averaged 18 transaction sides. RE/MAX has been the leader in the northern Illinois real estate market since 1989 and is continually growing. The RE/MAX Northern Illinois network, with headquarters in Elgin, Ill., consists of more than 2,250 sales associates and 103 independently owned and operated RE/MAX offices that provide a full range of residential and commercial brokerage services. Its mobile real estate app, available for download at www.illinoisproperty.com, provides comprehensive information about residential and commercial property for sale in the region. The northern Illinois network is part of RE/MAX, a global real estate organization with 110,000+ sales associates in 100+ nations.
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