CHICAGO—Chicago-area home values took another big step upwards in February, with the median sales price reaching $212,430, up 12.4% when compared to the same month last year, RE/MAX reports. That followed a 10% increase in January.
“The median sales price in February was the highest for that month since 2008, the period when Chicago-area home values were at their pre-recession peak,” says Jack Kreider, executive vice president and regional director of the RE/MAX Northern Illinois network. Still, the median price is 12.4% lower than it was in February 2008. In 2012, the February median sales price fell as low as $135,000, 44.3% down from the 2008 peak, before values began rebounding.
The metro area's sales market in general has suffered from a lack of inventory, a situation that has persisted for some time. In the second half of 2016, for example, the inventory of homes for sale continued to run at about 10% below 2015 levels. Other markets around the US have experienced a similar state of affairs.
“The fact that Chicago is one of the few major markets in the nation where prices are generally still below pre-crash levels means we have considerable room for upside movement,” Kreider adds. “With the employment picture steadily improving, interest rates at historically attractive levels and a limited inventory of homes for sale, especially those priced close to the median price or lower, we anticipate home values will do quite well this year.”
RE/MAX found that February home sales in the seven-county metro area totaled 5,795, down 3.8% from February 2016. The average market time for those homes was 108 days, five fewer than the prior February.
But sales of distressed properties, such as foreclosures and short sales, continue dwindling as a percentage of the Chicago market. In terms of market share, distressed properties peaked in 2012 at 52.7% of all February sales. Last month, that share was down to 18.9%.
Sales data used by RE/MAX is collected by MRED, the regional multiple listing service.
CHICAGO—Chicago-area home values took another big step upwards in February, with the median sales price reaching $212,430, up 12.4% when compared to the same month last year, RE/MAX reports. That followed a 10% increase in January.
“The median sales price in February was the highest for that month since 2008, the period when Chicago-area home values were at their pre-recession peak,” says Jack Kreider, executive vice president and regional director of the RE/MAX Northern Illinois network. Still, the median price is 12.4% lower than it was in February 2008. In 2012, the February median sales price fell as low as $135,000, 44.3% down from the 2008 peak, before values began rebounding.
The metro area's sales market in general has suffered from a lack of inventory, a situation that has persisted for some time. In the second half of 2016, for example, the inventory of homes for sale continued to run at about 10% below 2015 levels. Other markets around the US have experienced a similar state of affairs.
“The fact that Chicago is one of the few major markets in the nation where prices are generally still below pre-crash levels means we have considerable room for upside movement,” Kreider adds. “With the employment picture steadily improving, interest rates at historically attractive levels and a limited inventory of homes for sale, especially those priced close to the median price or lower, we anticipate home values will do quite well this year.”
RE/MAX found that February home sales in the seven-county metro area totaled 5,795, down 3.8% from February 2016. The average market time for those homes was 108 days, five fewer than the prior February.
But sales of distressed properties, such as foreclosures and short sales, continue dwindling as a percentage of the Chicago market. In terms of market share, distressed properties peaked in 2012 at 52.7% of all February sales. Last month, that share was down to 18.9%.
Sales data used by RE/MAX is collected by MRED, the regional multiple listing service.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
