CHICAGO—The metropolitan Chicago housing market found firmer footing in July, posting modest gains in both sales activity and median sales price, RE/MAX reports. That followed two months of declining sales activity compared to the same months in 2017, even as the median sales price continued to rise.
Total July home sales in the seven-county region totaled 11,370 units, up 1.4% from July of last year. Sales had fallen 1.2% in May and 5.8% in June. The July median sales price gained 2% to $255,000, the highest median price for July since 2008. But the market also seems to have split into two, with one portion exhibiting more strength.
“After the spring rush, things seem to settle down, but now anything below $350,000 seems to be moving,” Tim Binning. owner of RE/MAX All Pro., tells GlobeSt.com.
July sales of homes priced from $100,000 to $349,999 totaled 7,488 units in the metro area, 4.2% more than sold in July last year. Sales of homes priced between $350,000 and $999,999 were essentially unchanged, declining by five units. “It’s definitely more of a buyer’s market for homes in the upper range.”
Binning’s company has offices in suburban Bloomingdale, St. Charles and Sugar Grove, and he says the heightened interest in more affordable properties has also benefitted some suburban markets.
July home sales rose in five counties, with Kendall gaining 9.2%, McHenry and Will each up 7.1%, Kane up 4.1% and Cook gaining 1.4%. But sales fell 3.5% in DuPage and 3.4% in Lake.
Last month also saw the continuation of the trend toward quicker sales. The July average shrank to just 61 days from 66 days a year earlier, the lowest market time for any month since RE/MAX began tracking that data in 2005.
“It has a lot to do with inventory,” Binning says. With so few homes hitting the market, buyers are snapping up what is out there faster than ever. And he does not expect the situation to change until prices increase even further. Eventually, prices will increase enough to spark new construction and replenish the region’s inventory.
That may take a while. Binning says it’s not unusual to see homes that once sold for $700,000 still trading for $500,000. Still, if someone wants to sell a more affordable home, “now is a great time to do it.”