The Case-Shiller Chicago Condo Index for November was 146.1 up 4.9% from November 2016. This is the highest annual increase since February.
The condo index was up 0.3% from the October index showing unexpected strength. Last year the November index was down 0.5% from the October index. The index typically falls from October to November as part of its annual cycle.
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 November was 139.5. 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 3.6% from November 2016 and down 0.4% from October. It was down 0.1% from October to November last year. It too typically falls from October to November as part of its annual cycle.
The Chicago Condo Index has outperformed Chicago’s house index for over 3 years now. It rose above the house index in November 2014 and has stayed above every month since. It’s currently 4.7% 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 October 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 October not reflect the overall condo market.
WHAT THIS MEANS FOR BUYERS
Even though we’re in the slower winter season you still need to be ready to buy when you find a home you want as you may encounter competing offers. This will be especially true for condo buyers. 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. House sellers should price less aggressively at this time. 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.