It’s always a vendor’s market in Chicagoland

June 28, 2022

Montana Mortgages

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With the data compiled from late spring, one thing is clear: this is still a seller’s market. Across the state of Illinois, homes sold faster in May 2022, year over year. Although interest rates rose slightly, demand remained strong.

In May, a total of 16,194 homes were sold statewide, according to Illinois REALTORS®. And while the number reflects a 10.1% year-over-year decline, that’s mostly due to lack of inventory. Year over year, the number of homes for sale fell 24.4% to 21,718 homes. Reflecting the tight competition, the median price also rose 6.2% to $276,000.

“Now is a great time to sell your home,” Illinois REALTORS® President Ezekiel “Zeke” Morris said in a press release. “The average Illinois home spent just over three weeks on the market in May, and some properties are attracting multiple offers from potential buyers.” The average Illinois home spent 24 days on the market in May, nine days less than a year ago.

Statistics from the Chicago Association of REALTORS® (CAR) revealed that 3,335 properties were sold in the city proper in May 2022: 3.4% less than in May 2021. And although the days on the market decreased by 23.6%, at 55 days on average, the median sale price remained the same as last year: $350,000.

In the Chicago metro area, however, home sales fell at a more drastic rate of 10.6%. A total of 11,641 homes were sold in the area in May, but the price increase was slightly less pronounced – 5.5% – bringing the metro median to $327,000. The average days on market in Chicagoland also fell 19.2% to 21 days in May.

“Clearly, we’re in an extreme seller’s market with historically low inventory and strong buyer demand,” said John Gormley, CEO of the Mainstreet Association of REALTORS®, reflecting on the data from suburban Chicago. “If a seller is ready, now is the time to list.”

According to Mainstreet, the suburbs that saw the biggest declines were, in order: Vernon Hills (down 89.3%), Sugar Grove (down 89.1%), Addison (down 84 .5%), Antioch (down 79.5%), Western Springs (down 72.6%), Western Springs (down 72.6%), Hinsdale (down 70%), Lemont (down 66.7%), Homewood (down 62.1%), Mt. Prospect (down 60.7%), Oak Forest (down 56.6%). ), Naperville (-56.4%) and Schaumburg (-45.8%).

New figures from the North Shore-Barrington Association of REALTORS® (NSBAR) paint a similar picture. As inventory continued to decline in the North Shore-Barrington area — new listings fell 21% — prices rose further. The median sale price in this zone is now $565,000, reflecting a 7.6% year-over-year increase to $565,000. And, with average days on the market falling to 38 days, an NSBAR statement notes that sellers have been encouraged.

“Buyers face fierce competition and don’t have the luxury of stalling,” Mainstreet President John LeTourneau said. Especially since mortgage rates continue to rise. “The longer you wait, the more expensive it is likely to be,” Gormley added. “Over a 30-year mortgage, there are still great financial advantages to buying a home, even in this market.”

Combined with inflationary fears, home sales should now rebound over the next few months. Daniel McMillen, head of the Stuart Handler Real Estate Department (SHDRE), voiced this SHDRE prediction in the Illinois REALTORS® press release. “Foreclosures have decreased significantly since the same period last year,” he said. “Inflation continues to be a concern for consumers, particularly among high-income households, and interest rates are expected to rise this summer.”

CAR President Antje Gehrken echoed this sentiment. “Despite rising mortgage rates and a significant drop in inventory, buyer activity remains elevated, as evidenced by the continued decline in days on market and the slight rise in median selling prices,” he said. she declared. “The market continues to slowly return to pre-pandemic behavior and normalize after a breakneck pace.”