The Illinois Association of Realtors (IAR) reported that year over year residential sales in the city of Chicago declined by 11.9%, with 2,714 sales in July 2016 compared to 3,082 sales in July 2015. The median sale price increased by 1.8% ($290,000 in July 2016 compared to $285,000 in July 2015). Homes in the city of Chicago were on the market an average of 38 days, down from 41 days last July.

IAR’s press release explains that a lack of inventory has resulted in lower sales and higher prices. Dan Wagner, president of the Chicago Association of REALTORS® and senior vice president for government relations at Inland Real Estate, affirmed the current seller’s market. “If you have a home on the market, it’s selling at an incredible pace. In Chicago, the time to sell was just 38 days, and when you pair that number with double-digit annual decreases in inventory, it’s a market where sellers are reaping a premium.”

The following charts summarize median price and sales trends:

The University of Illinois Regional Economics Applications Laboratory estimates negative growth in Chicago area* annual sales levels for August, September, and October 2016, with average changes expected to decrease by 3.4%-4.7% compared to last year. Other notes from the forecast report include:

• Median prices in the Chicago area are estimated to post year-over-year gains of +6.5% in August, +4.7% in September, and +4.0% in October.
• In July 2016, at the previous 12 month average sales rate, the Chicago area had enough housing inventory for 3.6 months (down from 4.6 months a year ago). Months of supply for homes in all price ranges except $700K+ declined in both Illinois and the Chicago area.
• The pending home sales index, a leading indicator based on contract signings, was 207.0 in July (100=average pending sales in 2008). The number of homes put under contract in the Chicago area was greater than last year (up 9.7% from July 2015), but lower than last month (down 5.2% from June 2016).

Chaired by Mayor Rahm Emanuel, World Business Chicago is the public-private partnership leading the Plan for Economic Growth and Jobs in order to drive business development, cultivate talent, and put Chicago at the forefront of the global economy.

WBC’s “Economic Briefs” track indicators from month to month to gauge the strength of several aspects of Chicago’s economy, including unemployment, population, venture capital, job openings and new hires, home sales, tourism, etc. This data provides a clear analytic framework for specific Plan strategies and initiatives. For a summary of these and other economic indicators, refer to WBC’s monthly Chicago By The Numbers.