The frenzy isn’t over just yet.
June’s numbers are in, and they look a lot like May’s. Chicago is still in the midst of a hot real estate market characterized by ultra fast market times.
Last month, we predicted that a notable increase in median sale prices was looming. Many buyers we house-hunted with this spring encountered multiple bidding wars during their quest to buy the perfect home, and in order to come out on top, they had to pay up. Many of those March and April buyers closed on their homes this June, so we’re not surprised to see a noticeable median sale price increase in June’s sale data. The median sale price in Chicago this June was 4% higher than the year prior.
Don’t panic yet, homebuyers. There are some subtle signs that this crazy market could be on its way to stabilizing. Homes that closed in May were on the market for 10 days, on average, before going under contract. That was the fastest median market time recorded in our area in the last decade- so fast that even June couldn’t top it. The median market time for homes that closed in June stayed constant at 10 days.
There was also an uptick in the supply of homes for sale in Chicago. If you’ve been reading our market updates over the past year you know that’s a big deal. The number of homes for sale in Chicago began declining in spring of 2015, and the resulting shortage has been fueling the crazy fast market times and price increases that we’ve been seeing lately. Looks like more Chicago homeowners have started catching on that now is a great time to sell, because the number of homes for sale this June was 4% higher than last June’s inventory.
The extreme shortage of listings that we’ve observed over the past year could be on its way out, which could change a lot of the patterns we’ve been seeing in the market this spring. Don’t forget to check back next month to see how July stacks up!