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Low inventory, seasonal factors force sales decline in Chicagoland

by Peter Thomas Ricci

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Home sales in the nine-county Chicagoland area lost some steam in October, according to the latest report from Illinois Realtors.

For the month, there were 8,762 sales, a 6.3 percent decline from Oct. 2015 and 12.91 percent drop from September. Meanwhile, the area’s median price continued to rise, climbing 8.1 percent year-over-year to $216,250.

In comments accompanying the report, Geoffrey J.D. Hewings, the director of the Regional Economics Applications Laboratory at the University of Illinois, said a few factors contributed to October’s soft sales numbers.

“No doubt that the election contributed to a decline in sales, but prices continue to grow,” Hewings said. “For the next three months, price growth is anticipated to be a little stronger. Declining supply contributes some uncertainty to sales growth.”

And October did mark yet another month of inventory declines – with only 38,342 homes on the market, supply was down 17 percent from a year ago.

Home sales across Chicagoland

Given how large and diverse Chicagoland’s market is, housing performance differed considerably across the area:

•In the city of Chicago, sales were down 8.8 percent year-over-year, while median price rose 9.2 percent to $262,000.

•Meanwhile, in the 200 suburban communities that the Mainstreet Organization of Realtors tracks, single-family detached sales were down 5.3 percent from last October; average sales price rose 7.2 percent to $230,424.

•At the county level, home sales in Kane were up 6.8 percent, while home prices in Will and Cook rose 10.3 and 10 percent, respectively.

•Finally, several suburban housing markets saw sales jump by double digits, including: Batavia (up 42.9 percent), Bloomingdale (54.6 percent), Dolton (76.5 percent), Matteson (37.5 percent), Maywood (50 percent) and South Holland (27.5 percent).

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