ELGIN, IL—The metro Chicago residential real estate market shook off the constraints posed by a dwindling inventory of homes for sale to post modest gains in October, RE/MAX reports. Compared to the same month last year, sales rose 2.7% to 8,931 units in the seven-county metro area, and the median sales price gained 2.3% to $224,000 despite a 9.2% decline in properties listed for sale.
The average time a home sold in October spent on the market before finding a buyer fell to 74 days from 83 days one year earlier. It is the shortest average market time for October since RE/MAX began tracking that data in 2005.
“The lack of inventory continues holding back sales, but demand for homes remains strong; that is especially true in the attached segment of the market,” says Chris Calomino, spokesperson for RE/MAX Northern Illinois. “Last year, attached homes accounted for 35.5% of October sales. This year they were 37.1% of the total. But whether a home is attached or detached, we're hearing from our brokers that properties in good condition and reasonably priced are selling quite quickly. We expect an active market right through the holiday season and into 2018.”
The decline in inventory has prospective buyers widening their searches. Last month, Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois, noted that foreclosed properties saw significant increases in sales prices, increasing by over 15% compared to 5% for regular sales.
RE/MAX analyses home sales data collected by MRED, the regional multiple listing service. It covers detached and attached homes in the IL 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.
Total home sales activity rose in all seven metro counties, with DuPage the clear leader. Sales there were up 6.9%, while the six other counties and the City of Chicago had gains of 3.7% or less.
The median sales price rose in six counties, led by gains of 9.8% in Lake and 9.7% in Kendall. Elsewhere, the median price rose 2.5% or less, except in Kane County, where it fell 1.6 percent. Average market time shortened in all seven counties and ranged from as long as 85 days in McHenry to just 51 days in Kendall.
The decline in inventory has prospective buyers widening their searches. Last month, Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois, noted that foreclosed properties saw significant increases in sales prices, increasing by over 15% compared to 5% for regular sales.
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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.
