Unlocking the Market: A Seller’s Advantage in Chicago Real Estate
The latest Real Estate data insights indicate Chicago continues to be a Sellers’ Market with inventory constrained compared to 2023. As we delve into the data, it’s evident that the winds will continue to blow in favor of those looking to sell their properties. With a discernible drop in annual closed sales and a marked surge in median home prices, sellers are positioned with a notable edge in the current market climate. Both the broader Chicago Metro Area and the heart of the city itself have witnessed significant spikes in median home prices, painting a picture of a robust and appreciating market. A constraint of housing inventory is a contributing factor to the Sellers having the current advantage.
Market Momentum: An Overview
In a nutshell, the end of 2023 figures reveal a nuanced tale of supply and demand dynamics in the Illinois housing arena. According to the latest data from Illinois REALTORS®, annual closed sales in the state registered a noticeable decline, totaling 132,120 in 2023, marking an 18.3 percent decrease from the previous year’s 161,695 transactions. However, amidst this shift, the median home price showcased an upward trajectory, hitting $269,000 in 2023, a 3.5 percent increase from the preceding year’s median of $260,000.
Zooming into the Chicago Metro Area
The pulse of the market within the sprawling nine-county Chicago Metro Area echoes this narrative of change. December 2023 witnessed a dip in home sales, totaling 6,013 for both single-family homes and condominiums, a 6.8 percent decrease from the corresponding period in 2022. Concurrently, the inventory crunch intensified, with only 11,266 homes listed for sale in December 2023, marking a significant 27.1 percent decline from the previous year’s figures.
Despite this, the median home price in the Chicago Metro Area surged to $307,000 in December 2023, signaling a 7.0 percent increase from the same period in 2022. Annually, home sales in the area amounted to 89,482, indicating a substantial 20.1 percent decrease from 2022, yet the median price of a home for the year rose to $324,900, up by 4.6 percent from the previous year.
Navigating Chicago’s Urban Landscape
Turning our lens to the heart of the action, the city of Chicago tells a tale of resilience amidst fluctuating market dynamics. By the end of 2023, we saw a marginal uptick of 1.6 percent in home sales compared to the previous year, amounting to 1,470 transactions. However, the dwindling inventory remained a challenge, with only 4,171 homes available for sale, representing a stark 27.3 percent decline from December 2022.
In terms of pricing, the median home price in the city of Chicago was $310,000 in December 2023, marking a 7.8 percent increase from the previous year. Annually, home sales totaled 22,400, showcasing a 20.9 percent decrease from 2022, yet the median price for the year stood at $330,000, a slight decline of 1.5 percent from the previous year’s figures.
Final Thoughts
In essence, the current real estate landscape in Chicago is a testament to the resilience and adaptability of the market. Despite facing challenges posed by inventory constraints, the sustained demand and stable median prices underscore a market that’s not only weathering the storm but also evolving and thriving amidst adversity. For sellers, it’s a time ripe with opportunity, while buyers navigate through a landscape where strategic decisions are paramount. As we move forward, staying attuned to these market dynamics will be crucial in making informed and advantageous real estate moves in the Windy City.
Sources: Illinois REALTORS, Norada Real Estate Investements