Spring Has Sprung
Unseasonably warm doesn’t just describe the weather in Chicago the past few months. With transaction activity much stronger than it tends to be at this time of year, the real estate market has gotten off to a hot start in 2017. Let’s take a closer look at some key performance indicators:
- Transactions Up – January home sales in Chicago jumped 12% year over year, indicating the market hit its stride earlier than usual. Meanwhile, pending home sales, which are based on signed contracts, rose 16% in January and 12% in February on a year-over-year basis. Rising mortgage rates may be motivating some buyers to make their home purchase sooner.
- Inventory Down – While demand is high, the supply of homes for sale in the city continues to diminish. In February, Months’ Supply of Inventory stood at just 2.5 months, down 24% vs. the year earlier period. As a general rule of thumb, a balanced market (where supply and demand are in equilibrium) has about 4 to 6 months’ worth of inventory.
- Market Times Down – With supply tight, it’s no surprise that desirable properties are flying off the shelf in many neighborhoods. The average market time in the overall Chicago market decreased to 97 days year to date, compared with 101 days for the same period last year.
Higher sales numbers and shorter market times signify a strong transaction climate. So if you’re thinking about making a move, spring is looking like an opportune time to do so.
Of course, buyers and sellers should always keep in mind that real estate is local, which means every neighborhood, price point and housing type is subject to a unique set of circumstances.
For an in-depth analysis of your local market, contact your @properties broker.