Staying true to the hot summer season, June proved to be yet another strong month for Chicago condo sales:
The biggest sales price jump from last month’s market report occurred in Avondale, where the median price reached $350,000 in June from $260,950 in May. Other neighborhoods that increased in price month-over-month include Near North Side (River North, Old Town and Gold Coast), Lincoln Park, Lakeview, Logan Square and North Center.
Outside of cost, the Avondale condo market proved to be the tightest with an average listing time of just 11 days and merely 25 new listings throughout the month of June. Sellers there received 98.6 percent of their asking prices, on average.
Unsurprisingly, the red hot West Loop had the second lowest average market time at 32 days, but median price softened slightly in June.
Despite the slight sales price increase (up $9,000 month-over-month), Near North Side had the largest number of new listings at 570 and the second slowest market time of 67 days, giving buyers some wiggle room for negotiations.
Farther south, condos in the Loop suffered the lengthiest market time at 69 days and a median price drop of $13,000 from May. The South Loop saw the sharpest median price drop from May to June at $32,900. However, South Loop condo sellers sold above their initial asking price (101.4 percent premium), which suggests frequent bidding wars and elevated buyer competition.
Is now the time to buy or sell?
Home buying activity is flowing. This week, 30-year fixed mortgage rates dropped to 4.04 percent. With the Fed promising looming surges, many Chicago home buyers plan to lock down their mortgage loan while rates remain favorable. But, this shared mindset coupled with low housing inventory helped boost competition and home prices. Those two conditions might cause prospective home buyers to hesitate for fear of a bad buy.
Regrettable real estate decisions, whether overspending for rental building amenities or rushing through the home purchase process, are somewhat common. The many peaks and troughs of the real estate market certainly don’t help; homeowners who bought at the height of the market in 2006 are still kicking themselves.
But, there’s a lot to be confident in when buying a home in Chicago. Despite increased buying competition, Chicago home prices are moderate compared to most major cities. Out of the 10 largest metros in the nation, Chicago has the smallest share of homes that recouped to their pre-recession peaks. This helps keep housing affordability at a reasonable level.
A recent survey from Trulia shows overall attitudes toward homeownership are on the upswing. Overall, Americans tend to view homeownership more positively than negatively. Around half of Millennials ages 18 to 34 have a somewhat more positive view toward homeownership since the housing market bottom in 2012. Interestingly, the biggest regret among renters who participated in Trulia’s survey was choosing to rent instead of buy.
For Chicago home sellers, the market is prime. With strategic advertising, honest guidance and a trusted listing agent to execute the details, homes in hot neighborhoods rarely stay on the market for long.
Ready to buy or sell a home in Chicago? Our skilled team of Realtors offers comprehensive consultations to anyone eager to learn about the current market. Call us at 312-810-2295 to get started.
