July in Chicago was another popular condo buying period, with houses in the city selling faster than they have in a decade at an average market time of 74 days. Thanks to lack of for-sale inventory, the number of homes sold in July dipped 6 percent between June and July. Still, the median sales price for Chicago condos reached $325,000 in July – up 1.6 percent compared to July 2016 (Illinois REALTORS®).
Leading in month-over-month median condo price increases was the Loop, where home prices swelled an impressive 4.7 percent since June. The median price on Lakeview and West Loop condos also boosted 2.8 and 2.2 percent, respectively. Similarly, West Town saw a sizable monthly surge in median condo sales price at 2.6 percent. All other neighborhoods faced slight drops in median sales price compared to June’s market report, including the new real estate hotspot Avondale. However, Avondale’s median sales price – currently $320,000, down from $350,000 in June – preserves its considerable increase since the late spring. In May, the median price for Avondale condos came in at just $260,950.
Pushed primarily by fewer homes for sale and (still) low interest rates, condo buyers in Chicago moved swiftly. Average market time decreased by 10 days in the River North/Gold Coast/Old Town area. Similarly, North Center condos went off-market nine days faster than they did in June. Condos in the Loop sold one day faster last month compared the month prior. All other neighborhoods saw average market time grow anywhere between 2 and 21 days, the latter of which occurred in the South Loop.
For the most part, July’s Chicago home sellers received a similar percentage of asking price as their predecessors. Homeowners in South Loop and Logan Square closed above asking. Lakeview condo owners led in list price shortcomings, still receiving an average 97.4 percent of original asking price.
There were fewer home sales in July than June in almost every Chicago neighborhood aside from Avondale. With the exception of Lakeview, where the number of new listings remained unchanged at 338 between June and July, all neighborhoods saw a drop in fresh inventory as well.
It’s still a great time to get a buy a home in Chicago, especially if you need a mortgage. Today’s 30-year fixed mortgage rate is at a tempting 3.95 percent. That’s up slightly from late August (3.82 percent) but down from July’s 4.04 percent.
Looking forward: buying a home this fall
Summer is nearing its end, but Chicago home buying is projected to increase drastically over the next few months. Right now, Chicago-area homeowners are twice as likely to purchase a home compared to homeowners nationwide, according to a new study released by ATTOM Data Solutions. These projections are based on mortgage applications and preapprovals from April through June, which jumped considerably during the second quarter of this year.
“We expect the Chicago area to be one of the hottest in the nation in the third quarter,” said Daren Blomquist, ATTOM’s senior vice president, in a statement emailed to Crain’s Chicago Business.
Increased home buying interest in Chicago is driven by affordability, especially when compared to hot real estate markets out West, like San Francisco. Plus, the new wave of home sellers is likely encouraged by increases in Chicago home equity. Chicago ranked second in active housing market activity behind Colorado Springs.
