“This is a classic case of supply and demand,” said Phil Chiles, ABR, CRS, GRI, SRES, president of the Illinois Association of REALTORS®. “The low number of homes on the market is forcing consumers, who very much want to buy, to pay a bit more. What’s important to note is that there’s still a lot of interest in purchasing a home despite the lower selection.”
Home sales for the first 11 months of 2013 were 19.5 percent ahead of 2012. Year-to-date median prices were 7.6 percent ahead of 2012 levels.
The monthly average commitment rate for a 30-year, fixed-rate mortgage for the North Central region was 4.27 percent in November 2013, up from 4.20 percent in October, according to the Federal Home Loan Mortgage Corp. In November 2012 it averaged 3.33 percent.
In the nine-county Chicago Primary Metropolitan Statistical Area (PMSA), home sales (single-family and condominiums) in November 2013 totaled 7,640 homes sold, down 1.3 percent from November 2012 sales of 7,744 homes.
The median price in November 2013 was $170,000 in the Chicago PMSA, up 9.7 percent from $155,000 in November 2012. The time it took to sell a home dropped substantially in November with listings averaging 62 days until sale, a 25.3 percent decrease compared to 83 days in November 2012.
“As with many other markets, the Chicago and Illinois housing sales dipped into the negative range after 29 months of positive growth, but prices continued to inch forward,” noted Geoffrey J.D. Hewings, Director of the Regional Economics Applications Laboratory of the University of Illinois. “One of the greatest concerns in the housing market is the shrinking inventory of lower-priced homes presenting a challenge to lower income households many of whom are paying upwards of 50 percent of their incomes on rent.”
The city of Chicago continues to see a steady increase in median home pricing to $220,500, year-to-date, versus $185,000 January through November 2012.
“This November was reflective of a typical autumn month of sales in Chicago, the real difference being the inventory of homes available, which was down 27.1 percent from this time last year,” said Matt Farrell, president of the Chicago Association of REALTORS®.
“Chicago is continuing to see buyers contemplate their future needs; however, the inventory available in 2014 will ultimately dictate the opportunities available for those looking to make a move,” Farrell added.
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