The Spring home buying and selling season is nearly upon us. Punxsutawney Phil predicted an early Spring. Hope his weather radar is accurate!
Chicago remains a great place to live and to raise a family. Homes in Chicago are affordable, unlike many other big American cities, and life here gets more interesting every year.
Let's take a look at some of the recent housing industry statistics for Chicago real estate.
Chicago home affordability index
The housing affordability index in January for single-family attached homes was 89, with a median sales price of $307,000. For single-family detached homes it was 115, with a median sales price of $220,000.
So what does the housing affordability index mean? For example, an index of 120 means the median household income was 120% of what is necessary to qualify for the median-priced home under prevailing interest rates. A higher number means greater affordability.
It is fair to note that although the single-family attached homes affordability index is low, it reflects the higher priced condo developments in high-priced areas close to The Loop. There are many affordable condos available throughout the city that most buyers can afford.
Inventory of Chicago homes for sale
Early signs point to an improving inventory situation as new listings enter the market. Several markets are beginning to show regular year-over-year percentage increases.
Since the beginning of the year there were 2,691 new listings of single-family attached homes, and 1,547 single-family detached homes.
Inventories of single-family attached homes for the last 3 months averaged 4,845 homes for sale, which is a 9.3% increase year-over-year. Single-family detached homes showed a 3-month average of 3,496, for a 10.5% year-over-year decrease in inventory.
It's interesting to note that at this time 10 years ago there were nearly 15,000 single-family attached homes for sale, and a little over 7,500 single-family detached homes.
Chicago homes under contract
In the past 3 weeks 949 single-family attached (down from last year) and 633 single-family detached homes (up from last year) went under contract. As expected, activity increased significantly once the holiday season was over . . . in spite of the crazy weather.
If you have questions about buying or selling real estate in Chicago, or the greater Chicagoland area, CONTACT US. Our agents speak over 30 languages, and our office has been serving Chicagoland for over 70 years. We can help you achieve your goals.
Data for this post comes from Midwest Real Estate Data reflecting activity within the 77 officially defined Chicago community areas, and is current as of February 11, 2019.