CHICAGO, Feb. 16, 2017 /PRNewswire/ -- The Chicago area housing market began 2017 much as it ended 2016, with a limited inventory contributing to a steady rise in the median sales price. January saw 6,127 homes sales completed in the seven-county metro area, 1.8 percent more than the same month of 2016 and the most in January since 2006.
The median sales price gained 10 percent to $210,000. Average market time needed to sell those homes was 99 days, eight days less than in January 2016.
These results echoed those for the fourth quarter of 2016 when sales rose 3 percent, the median sales price gained 7.5 percent and average market time fell six days to 88 days.
There were 26,636 homes listed for sale at the end of January, 12.4 percent less than one year earlier. That represented a 4.3-month supply based on January sales activity, down from a 5-month supply a year ago.
"A 12.4 percent decline in inventory isn't ideal," said Jack Kreider, executive vice president and regional director of the RE/MAX Northern Illinois network. "I'd like to see inventory at least at last year's levels if not higher by April so we have a more balanced market. Right now, there's a real shortage of listings in some market segments, which is great for sellers but challenging for buyers."
The home sales data used for the RE/MAX analysis is collected by MRED, the regional multiple listing service. It covers detached and attached homes in the Illinois counties of Cook, DuPage, Kane, Kendall, Lake, McHenry, and Will. Detached homes are typically stand-alone single-family dwellings. Attached homes include condominium and cooperative apartments along with townhouses.
The strongest January performance among the seven counties came in Cook. Not only were sales up 5.8 percent, but the median sales price gained 10.6 percent. Much of that momentum came from Chicago, where the gains were even larger. Sales activity there climbed 10.9 percent; the median sales price rose 12.1 percent.
Kane County recorded the largest increase in sales at 8.7 percent, while DuPage suffered the largest decline at 14.2 percent. Sales rose 3.3 percent in Kendall and 2.4 in Will but fell 0.4 percent in Lake and 8.1 percent in McHenry.
The median sales price rose not just in Cook but in the six other counties as well, gaining 8 percent in DuPage, 7.4 percent in Kane and Kendall, 15.5 percent in Lake, 4.8 percent in McHenry and 5.7 percent in Will.
Sales of detached homes in the metro area dipped 0.5 percent in January compared to January 2016, with 3,906 units changing hands, but the median sales price rose 7.1 percent to $224,900. Average market time shortened by 9 days to 107.
Sales increased in three counties, gaining 8.2 percent in Kane, 4.6 percent in Will and 2.7 percent in Cook, which included a 9.4 percent increase in Chicago. Detached sales were down 16.5 percent in DuPage, 1.2 percent in Kendall, 1 percent in Lake and 11.8 percent in McHenry.
Median sales prices rose across the board, gaining 8.2 percent in Cook, 10.3 percent in DuPage, 8.1 percent in Kane, 17.4 percent in Kendall, 14.4 percent in Lake, 13.3 percent in McHenry and 4.5 percent in Will. In Chicago, the median price rose 2.7 percent.
For attached homes, January sales rose 6.2 percent to 2,221 units in the metro area and the median sales price gained 8.5 percent to $178,500. Average market time was down 7 days to 84. That strong activity helped push the month-end inventory level for attached homes down 13.7 percent compared to the year-earlier total.
Cook County, including Chicago, dominated the attached market, accounting for 69 percent of all sales. In Cook, transactions increased 10.3 percent, and the median price rose 14.4 percent to $217,500. Transactions were up 12 percent in Chicago where the median price gained 17.4 percent to $310,000.
Attached sales rose in four other counties and fell in two, while the median sales price rose in five and was unchanged in Kane. Sales increased 10.3 percent in Kane, 12.5 percent in Kendall, 1.7 percent in Lake and 6.7 percent in McHenry. Sales fell 4.4 percent in Will and 9.7 percent in DuPage.
The median price climbed 13.3 percent in DuPage, 8 percent in Kendall, 5.9 percent in Lake, 5.5 percent in McHenry and 2.4 percent in Will.
The RE/MAX Northern Illinois network, with headquarters in Elgin, Ill., consists of more than 2,250 sales associates and 105 independently owned and operated RE/MAX offices that provide a full range of residential and commercial brokerage services. The northern Illinois network is part of RE/MAX, a global real estate organization with 110,000+ sales associates in 100+ nations.
RE/MAX Northern Illinois
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SOURCE RE/MAX Northern Illinois