The inventory of listed downtown Chicago homes for sale continued to drop in the 4th quarter. There were 8.4% less such homes for sale compared to 4th quarter 2012.* There were 2,105 downtown Chicago homes for sale vs. 2,298 a year earlier. The percent of distressed sales (short sales and foreclosures) on the market dropped from 12% of the inventory to 6%.
The drop in inventory was slightly less than in the thrid quarter when the inventory fell 9.5% from a year earlier. As shown below, the inventory drop over the past 3 years has been dramatic. The inventory in the fourth quarter was down over 53% from fourth quarter 2010.
The median sale price was up 9.8%. The average sale price as a percent of original sale price for homes with no price changes was 96.7% up from 95.2%. The average sale price as a percent of original sale price for homes with 1 or more price changes was 89.0% up from 87.4%.
The number of units sold was down 6.4%. Pending sales were down 10.1%
WHAT THIS MEANS FOR DOWNTOWN CHICAGO HOME BUYERS
Lower inventory, rising prices and rising average sale price as a percent of original sale price confirm that it’s no longer a buyers market. You need to be ready to buy when you find a home you want. If you will be financing your purchase, get your mortgage pre-approval before you start touring homes. Contact me for recommended mortgage consultants. If you’re paying cash, get a proof of funds letter from your accountant or banker ready to go. Contact me to get started.
WHAT THIS MEANS FOR DOWNTOWN CHICAGO HOME SELLERS
If your home is priced right when it goes on market, it should sell in less than 3 months. The average days on market was down 42.2% to 84 days. With the drop in inventory slowing you definitely shouldn’t price your home above market. Most buyers finance their purchase. Your home will need to appraise for at least sale price for financing to be approved. The appraised value is primarily determined by recent comparable sales. If you’re considering selling your home, contact me for a free market analysis.
DOWNTOWN CHICAGO HOMES FOR SALE
Click below to see the downtown Chicago homes for sale in your desired price range.
|$3M & Above||$2M to $3M||$1.5M to $2M||$1M to $1.5M|
|$900K to $1M||$800K to $900K||$700K to $800K||$600K to $700K|
|$500K to $600K||$400K to $500K||$300K to $400K||$200K to $300K|
Call us at 773-793-4516 or email us.
*Information is based on data from Midwest Real Estate Data (MRED).