The Chicago housing market continues to be plagued by a lack of inventory. The lack of places for sale, the number of condos and town homes for sale is down 16% from last year, is limiting the choices of buyers. Buyers will need to adjust their searches. The odds of finding that perfect place are slim so you will need to make some compromises. It also means that you will have to be willing to move quickly when you find the home you want. Market time has dropped from 65 to 58 days. Sellers have the upper hand in most negotiations. This is true for the city as a whole, but Chicago is a city of neighborhoods and each has its own housing market. Some neighborhoods like the West Loop and Logan Square are so hot that buyers have no power and have to jump as soon as a place hits the market. While in others the buyer has a chance to look around. You will either need to do your homework or better yet find a good real estate broker who understands the state of each neighborhood’s housing market.Inside the NumbersThe number that continues to stand out is the lack of inventory. Attached home inventory is down almost 16% year over year. Single family homes available for sale are also down but not nearly as much, 10.8%. This lack of condos for sale is finally starting to push up prices. The average price increase was a seemingly sustainable 4.6%. If interest rates remain this low and the job market stays healthy prices will probably continue to go up.
The July Chicago attached housing numbers.
The July Chicago detached housing numbers.