Inventory continues to show big gains. The total number of houses, condominiums and co-ops on the market rose 25.6 percent in March from a year ago, the 11th straight month of growth. New listings also got a bump — 4,802 properties went on the market, a 16.6 percent jump from a year ago.
Despite the increase, demand is still higher. Chicago had 4.6 months of inventory in March, less than the six months that signals a balanced market.
That sky-high buyer interest is keeping price and sales growth strong. Home values rose 11.7 percent from a year ago in March, the third consecutive month of double-digit growth, and sales accelerated, notching their biggest year-over-year gain in more than a year.
The city’s median sale price reached $262,500, an increase from February, with the neighborhoods of Englewood, McKinley Park and Washington Park showing the biggest gains. Citywide, the average home sold for 95 percent of asking price, the highest sale-to-list ratio since September. More than a third of homes sold above asking price.
“Despite another frigid winter, median sales prices in Chicago have grown by double digits for the past three months,” Redfin Chief Economist Nela Richardson said. “Price growth hasn’t dampened buyer interest. With an increase in inventory and steady demand, Chicago is positioned to have a strong spring selling season.”
In some neighborhoods, buyers have considerable negotiating power. Take Hyde Park, where the median sale price was $119,000 in March, up 13.3 percent from a year ago. With a relative abundance of listings, properties frequently sell for well under their list price. Last month, when 11 homes sold, buyers on average paid less than 85 percent of asking price.
However, these bargain neighborhoods are becoming fewer in number as the year goes on.
“Inventory has been increasing, but the number of homes garnering multiple offers is becoming more frequent, resulting in a higher average sales prices over the last year,” Clayton Jirak, Redfin Real Estate Agent.
Redfin Real Estate Agent Alex Haried agrees.
“Recently, every offer I’ve submitted for clients in the West Loop has been subject to a multiple offer situation. Inventory is still low, historically speaking, and it’s causing tense market conditions. I’m seeing low inventory and competition in neighborhoods I wouldn’t think would have the issue, like McKinley Park and Canaryville.”
Source: Redfin analysis of multiple-listing service and county recorder data.
For more information, contact
Redfin Journalist Services
Phone: 206-588-6863
Email: press@redfin.com
