The Case-Shiller Chicago Condo Index for April was 147.8 up 3.4% from April 2017. The condo index was up 1.4% from March. The index typically rises from March to April as part of its annual cycle.
This is the first time the condo index has been above 147 since November 2008. It hit a low of 97.3 in March 2012.
The Case-Shiller Condo Index for Chicago is based on resales of condos in the Chicago Metro Area. It’s published with a 2 month lag.
The Chicago Case-Shiller Index for April was 141.8. The index was up 3.0% from April 2017.
The Case-Shiller Index for Chicago is based on resales of single-family homes (houses) in the Chicago Metro Area. It’s also published with a 2 month lag.
The house index was up 1.2% from March. The house index also typically rises from March to April as part of its annual cycle. However, this is the largest month to month increase since May 2016.
The Chicago Condo Index has outperformed Chicago’s house index for 3 1/2 years now. It rose above the house index in November 2014 and has stayed above every month since. It’s currently 4.2% above the index for houses.
The Case-Shiller Chicago Indices reported here are part of the Standard & Poors Corelogic Case-Shiller Chicago Home Price NSA Index. Instead of calculating a median sale price the indices use a repeat sales method. It analyzes sales data for properties with 2 or more recorded sales transactions. Sales between family members, properties with significant physical changes and sales data that appear to be erroneous are eliminated.
One of the benefits of the repeat sales method is that large new condo development closings have no impact as they do for the median sale price statistic. When a large condo development starts closing the sale of their units there might be several in the same month. In the past few years new condo developments in Chicago have also tended to cater to higher price markets. Thus, when these developments start closing the sale of their units it pushes the median sale price higher which might not reflect the overall condo market.
WHAT THIS MEANS FOR BUYERS
You need to be ready to buy when you find a home you want as there might be competing offers. This will be especially true for condo buyers. If you will be getting a mortgage, get your mortgage pre-approval before you start seeing homes. If you’re paying cash, get a proof of funds letter from your accountant or banker ready.
WHAT THIS MEANS FOR SELLERS
If your home is priced right when it goes on market, it should sell within a few months. Luxury homes do take longer. House sellers should resist the urge to price aggressively in the summer market. Most buyers have to 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 for the past 6 months. If you’re considering selling your home, contact me for a free market analysis