Metro Chicago November Home Sales Slip Slightly as Slowing of Entry-Level Activity Continues, RE/MAX Reports
CHICAGO, Dec. 19, 2018 /PRNewswire/ -- Home sales activity in the Metro Chicago area slowed slightly in November, according to a RE/MAX regional analysis, due largely to continuing weakness in the entry-level segment. November sales totaled 7,927 units, down -1.3% from the same month last year. Sales of homes selling for less than $300,000 fell -5.8%, and all other sales rose by +7%.
"When seen in historic context, metro Chicago November sales were excellent," said Jeff LaGrange, Vice President of the RE/MAX Northern Illinois Region. "November 2017 sales were the highest for that month since 2005, the housing boom peak. So, the slight decline this year isn't a huge concern.
"We continue to see two factors restraining entry-level sales activity," he explained. "The first is listing shortage. There is currently only a 2.9-month supply of homes for sale priced under $300,000. That compares to a nearly six-month supply in the rest of the market. Looking more closely, the real imbalance between supply and demand is for entry-level attached homes, with just a 2.8-month supply on hand at prices under $300,000. That shortage of entry-level units is certainly impacting many would-be buyers in the Millennial Generation.
"The second factor is affordability. Because entry-level buyers usually lack a substantial financial cushion, they are especially sensitive to things like rising interest rates and increased property taxes, both of which are affecting the Chicago market this year," LaGrange noted. "Housing values are rising but at a moderate pace, with the median sales price for November up just +4.4% over the prior November."
The average time a home sold in November spent on the market before going under contract was 79 days, one day less than in November 2017.
"The Chicago area housing market has been remarkably steady this year, buoyed by positive trends in job creation and GDP growth," said LaGrange.
Sales data used by RE/MAX 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.
November home sales rose in three counties, led by a +14.3% increase in McHenry, with sales also rising +7% in Lake and +0.4% in Kane. Sales were lower by -13.1% in Kendall, -3.6% in Cook, -1.8% in DuPage and -0.6% in Will, while Chicago sales fell -6.4%.
The median sales price increased in six counties, gaining +11.3% in McHenry, +10.5% in Kane, +9% in Kendall, +7.4% in Will, +3.1% in Cook and +2.3% in DuPage, while falling -2.1% in Lake. Chicago had an increase of +1.7%.
Sales of Detached Homes
Sales of detached single-family homes registered a minimal November increase, rising +0.1% to 5,131 units in the metro area, while the median sales price gained +3.5% to $252,000. Average market time was 85 days, four days less than the prior November. McHenry and Kane counties had especially positive results for the month.
Sales rose in four counties, led by a +16.6% increase in McHenry. Other gains were +6.9% in Kane, +5.9% in Lake and +1.5% in Will. Sales activity declined -6% in Kendall, -1.4% in DuPage and -3.9% in Cook, including a dip of -4.6% in Chicago.
The median sales price rose in all seven counties: +9.8% in Kane, +9.2% in McHenry, + 8.1% in Kendall, +6.3% in DuPage, +4% in Lake, +2.3% in Will and +4.2% in Cook, including a gain of +2.3% in Chicago.
Sales of Attached Homes
The attached-home market segment, which attracts many first-time buyers to city condos and suburban townhouses, continued to face inventory constraints and saw metro-area sales fall -3.7% to 2,796 units, while the median sales price gained +3.7% to $196,000.
Sales were up +11.2% in Lake and +6% in McHenry but fell elsewhere. Sales fell -3.2% in Cook, which accounted for two-thirds of attached sales, and included a -7.7% decline in Chicago. Elsewhere, sales were off -29.3% in Kendall, -18.7% in Kane, -7.7% in Will and -2.4% in DuPage.
Median sales prices delivered more upbeat results, rising +9% in Kendall, +7.7% in Will, +6.9% in McHenry, +5.3% in Lake, +3.5% in Cook and +3% in DuPage, while Chicago gained +0.5%. Kane had the only decline at -2.9%.
With more than 2,200 sales associates and 106 offices throughout the area, RE/MAX Northern Illinois has helped thousands of families with their home buying and selling needs. For more information, visit www.remax.com or download the RE/MAX mobile real estate app.
SOURCE RE/MAX Network
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