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Despite Split Personality, Metro Chicago Housing Market's Results for May Were Similar to Last Year
Overall results for May in the metropolitan Chicago housing market were something of a repeat, closely echoing the numbers recorded in May 2017, RE/MAX reports.
By: RE/MAX Northern Illinois Region
Total home sales in the seven-county region totaled 12,186 units, down -1.2% from the same month last year, while the median sales price gained +2.8% to $256,000. The May median price is the highest for any month since June 2008 and the highest for any May since RE/MAX began tracking that data in 2005.
One notable difference between last May and this May was the continued reduction in average market time, which is the period between when a home is listed and when it goes under contract. The May average fell -8% to 71 days, down from 77 days last year.
"Broadly speaking, the housing market was treading water in the Chicago area during May, but because there is a shortage of entry-level and moderately priced homes, it's really a tale of two markets," observed Jeff LaGrange, Vice President of the RE/MAX Northern Illinois Region.
He explained that among all price categories under $550,000, the current inventory of homes for sale equals a supply of four months or less based on the pace of May sales. Sales in those categories fell 314 units, compared to May of last year, a -2.4% decline. In contrast, the number of homes selling for $550,000 and above increased by 60 units, or +4.7%, while inventory in those categories now range from a 5.1-month supply to as high as a 25-month supply.
"Clearly, we have a much more balanced market above $550,000, while below that price point, the lack of inventory is a significant factor," LaGrange said.
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.
May home sales rose in three counties, Kane, McHenry and Will, with Kane registering the largest gain at +1.7%. Sales were down in the other four counties, led by a drop of -19.9% in Kendall, which tends to exhibit high volatility because it has far fewer sales than other metro counties. Sales in Cook, the sales volume leader, were off just -0.2%, which included a +0.1% increase in Chicago.
The median sales price rose in all seven counties, led by gains of +7% in Will, +5.6% in Kendall and +5.1% in Kane. Cook registered a minimal gain of +0.8%, with the Chicago median price falling -0.6%.
Sales of Detached Homes
Detached-home sales for May totaled 7,604 units in the metro area, a -0.7% decline from May of last year. The median sales price rose +3.3% to $276,750, and average market time dropped to 81 days from 90 days a year earlier.
Sales activity increased in Cook, Kane, Lake and Will counties, with Will the leader at +4.6%. Sales were off -17.6% in Kendall, -6.8% in DuPage and -2.2% in McHenry. Chicago had the largest increase, gaining +5.2%. Prices rose in all seven counties led by gains of +6.7% in Kendall and +6.3% in Will. In Chicago, the median fell -2%.
Sales of Attached Homes
A total of 4,582 attached homes sold in the metro area during May, -2% less than in the same month last year. Only two counties recorded gains for the month, with McHenry up +11.7% to 124 units and Kane up +1.8% to 217 units. Cook County, which accounted for 68.8% of all attached sales, saw its total fall -0.7% to 3,151 units, with Chicago down -2.6% to 1,907 units.
The median sales price for attached homes rose in all counties except Cook, where it slipped -0.4%. The largest increases were +14% in Kendall, +10.9% in Will and +10.3% in McHenry. Average market times were all 60 days or less, including 21 days in Kendall, 36 days in DuPage and 41 days in Will.
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 106 offices throughout the area, RE/MAX Northern Illinois has helped thousands of families with their home buying and selling needs. For more information, visit www.remax.com or download the RE/MAX mobile real estate app.