How has the real estate market in Chicago changed over the past ten years?
Some statistics have changed dramatically, but surprisingly, some factors are very close to where they were 10 years ago.
The most dramatic change in the market has been the inventory of homes for sale. In January of 2008 there were over 15,000 single-family attached homes and over 8,000 single-family detached homes for sale in Chicago. In September 2018 homes for sale hovered at around 6,000 and 4,000, respectively, a downward trend that has become the 'new normal' since 2009.
Inventories of homes appear to be at or near their lowest level in ten years. In September 2018 there was approximately a 4-month supply of inventory, contrasting with an approximate 12-month supply in January of 2008. Historically a 6-month supply of inventory is considered a healthy real estate market.
So with this dramatic change in housing inventory, you might expect that the number of sales and sales prices would also have changed in a big way. Not really.
Median prices of single-family attached and detached homes are at about the same level they were in September 2008 . . . $323,000 and $245,000, respectively.
There were approximately 1,000 single-family attached homes under contract in both September 2008 and September 2018. However unlikely it may seem from the low inventory levels, the 2008 single-family detached statistics show 450 homes under contract, contrasted with 900 in 2018. Had to do a double-take on that one.
It's interesting to note that the under-contract rate remained steady over the 10-year period, with natural fluctuations for the time-of-year differences in number of sales. So whether the inventory was high or low, it doesn't appear to have significantly affected the actual number of sales.
However, it did affect the time on market, which decreased significantly. In September 2018 it took approximately 72 days from listing to accepted contract, contrasting with over 140 days in September 2008.
There are many factors that affect the real estate market, and every city and neighborhood has its own story to tell. There is much reporting on housing market statistics, and most of it is based on a short-term window of time. Looking ten years back gives us a bit of a different perspective.
If you have questions about the current housing market in Chicago, want to know the actual value of your home, or are looking to buy, contact us. Our McMullen Office team has been helping sellers and buyers make informed decisions for over 70 years, and we can help you.