CHICAGO—The state's housing market currently looks great for those who do decide to sell their homes, with closings happening faster than ever and at steadily increasing prices, but seasonally low inventory levels caused sales to slow in April, according to Illinois REALTORS®. And some housing experts say a cloud or two has appeared on the horizon, and may have a harmful impact later in the year.

Statewide home sales in April 2017 totaled 13,958 homes sold, down 3.4% from 14,453 in April 2016. The statewide median price in April was $200,000, up 7.5% from April 2016, when the median price was $186,000.

“It's clear from the relatively short average time to sell that buyers really do want to find a home,” says Doug Carpenter, Illinois REALTORS® president and managing broker of Coldwell Banker The Real Estate Group in Orland Hills. “The problem is they are having to work much harder to find one that meets their criteria due to a shortage of options.”

The time it took to sell a home in April averaged just 61 days, down from 68 days a year ago. Available housing inventory totaled 54,666 homes for sale, a 15.3% decline from April 2016 when there were 64,554 homes on the market.

In the nine-county Chicago metro area, home sales in April 2017 totaled 10,157 homes sold, down 2.3% from April 2016 sales of 10,397 homes. The median price in April 2017 was $242,000 in the Chicago region, an increase of 5.2% from $230,000 in April 2016.

But economists do see some worrisome signs.

“While sales will continue the usual early summer upward growth, there is a lot of noise in the data,” Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory at the University of Illinois, tells GlobeSt.com. “The forecasts for median price indicate continued positive changes, but the REAL Housing Price Index, which compares specific housing characteristics, suggests declines and may also be reflecting the employment losses in the state over the past two months.”

“Businesses have a great deal of flexibility about where they expand,” he adds, and many “are deciding that, at the moment, Illinois is not the best option.” Worries about the seemingly endless budget stalemate in Springfield has eroded confidence, and the state is currently growing at far less than half the rate of the US. Ultimately, that means fewer new homebuyers coming into the state.

“The picture is not a good one,” Hewings says, at least “in the short run.” Still, “it's difficult and dangerous to extrapolate from one or two months worth of data.” He believes the overall statewide trend will become clearer in a few months.

The city of Chicago saw a 4.4% year-over-year home sales decline in April 2017 with 2,586 sales, down from 2,706 in April 2016. The median price of a home in the city of Chicago in April 2017 was $297,150, up 3.9% compared to April 2016 when it was $286,000.

“With the spring market underway, buyer demand has not abated in the least,” says Matt Silver, president of the Chicago Association of REALTORS® and partner at Urban Real Estate. “Rather, increased competition for homes that are priced well and move-in ready will continue to drive prices upward. Both motivated sellers and buyers should be prepared for these conditions to continue in the coming months.”

But economists do see some worrisome signs.

Instant Insights /

IL Home Prices Increase, but Uncertainty Hovers Over 2017

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