The Chicago Case-Shiller Condo Index for June was 145.7, up 3.7% from June 2016. The condo index was up 0.9% from the May 2017 index. June indexes are typically higher than May indexes since the market is in the busy spring season.
The Chicago condo index has outperformed the house index (see below) since January 2015. In June it widened the gap even more reaching 3.9% above the index for houses.
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 June was 140.3. The Case-Shiller Index for Chicago is based on resales of houses in the Chicago Metro Area. It’s also published with a 2 month lag.
The index was up 3.3% from June 2016 and up 0.9% from May. As with the condo index this index typically rises from May to June.
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 may 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 may 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 you may encounter competing offers. If you will be financing your purchase, get your mortgage pre-approval before you start touring 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. 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. If you’re considering selling your home, contact me for a free market analysis.