The number of listed houses for sale in the 4th quarter was down 11.5% from 4th quarter 2012.* There were 8,123 Chicago houses for sale compared with 9,182 a year earlier. The percent of distressed sales (short sales and foreclosures) dropped from 43% of the inventory to 35%.
In October I wrote about how the inventory of Chicago houses for sale was down 11.2% in the third quarter. As shown below, the inventory in the fourth quarter was down 29% from 3 years earlier.
The median sale price of listed houses in Chicago in the fourth quarter was up 13.5%. The median sale price was $160,000. The average sale price as a percent of original sale price for homes with no price changes was 97.3% up from 95.5%. The average sale price as a percent of original sale price for homes with 1 or more price changes was 86.0% up from 82.6%
The number of Chicago houses sold in the 4th quarter was up 13.4% from a year earlier. Pending sales were up 16.8%.
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WHAT THIS MEANS FOR CHICAGO HOUSE BUYERS
Lower inventory, higher prices and higher prices as a percent of original list prices 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 CHICAGO HOUSE SELLERS
If your home is priced right when it goes on market, it should sell in less than 4 months. The average days on market was down 14.2% to 108 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, get our free home valuation.
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*Information is based on data from Midwest Real Estate Data (MRED).