The Case-Shiller Chicago Condo Index for July was 146.4, up 3.9% from July 2016. The condo index was up 0.4% from the June index. July indexes are typically higher than June indexes since the market is in the busy spring and summer season.
The Chicago Condo Index has outperformed Chicago’s house index since January 2015. It is currently 3.6% 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 July was 141.3. 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 index was up 3.3% from July 2016 and up 0.7% from June. As with the condo index this index typically rises from June to July.
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 June 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 June 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.