The city of Chicago posted stronger housing numbers than the surrounding metro area in June, according to new analysis.
Home sales in the city of Chicago rose 1.2 percent in June from last year to 2,761 sales, while median sales price roe 8.9 percent to $275,000, according to the Illinois Association of Realtors.
That was a better outcome than the Chicagoland metro area, which saw home sales decline 1.2 percent in the same period, though median sales price did ride 7.3 percent to $220,000.
The Secret of the City’s Success
Matt Farrell, the president of the Chicago Association of Realtors, said that the summer homebuying season propelled Chicago’s housing market into positive territory.
“Home sales traditionally pick up in the summer months, and June was no exception,” Farrell said. “Chicago buyers helped reverse a year-over-year sales trend by buying more homes than last June. Demand continues to outpace home supply, and buyers are finding the home they want in a shorter amount of time. That continued to push median prices higher, putting sellers in a strong position.”
Also benefiting Chicago’s housing market is a radically declining stock of foreclosures. According to analysis by Geoffrey J.D. Hewings, the director of the Regional Economics Applications Laboratory of the University of Illinois, foreclosure inventory in Chicago is down 8.2 percent in the last two years, but in the last year, the rate of decline has increased to 14.3 percent – and in the last six months, it’s increased further to 24.2 percent.
Price Growth Remains Strong in Suburban Markets
Market activity was a bit muted in the suburbs by comparison, but prices did rise 8.6 percent, according to the Mainstreet Organization of Realtors (MORe).
Michael Parent, the president of MORe, said that prices will continue increase in the future, albeit at a slower rate.
“Home prices are going to continue to increase, but we are seeing that growth start to slow and stabilize,” Parent said. “We’re not seeing the big spikes that we did earlier this year.”
The future is certainly not bleak, though – pending sales in June were up 12.2 percent, hinting at positive sales numbers in August and September. And it’s like some areas did not see strong sales growth; in River Grove and Wood Dale, for instance, sales were up 200 and 100 percent, respectively.
Stay tuned later today for our breakdown on the top-selling suburbs in Chicagoland.