3 trends that defined Chicago’s housing market in January

by James F. McClister

family new house

In its monthly market report, Redfin dissected dozens of markets across the nation and found that in January, buyers typically faced three challenges: rising prices, low inventory and a fast market.

That was certainly true in Chicago.

Prices continue climbing

The city’s median home price hit $208,200 after rising 9.7 percent year over year and despite falling almost three percent from Dec. 2016.

City Median Sale Price Month Other Month % Change Year Over Year % Change
Chicago $208,200 -2.70% 9.70%

Sales were also up…from last year

There was a 9-percent decline in sales in Chicago from Dec. 2016 to January. But the decrease is less a reflection of how the market is currently moving and more a sort of reverse rebound from the sales spike the market saw at the end of last year. Looking at the more consistent year-over-year change, sales actually increased a 7.6 percent.

City Homes Sold Month Over Month % Change Year Over Year % Change
Chicago 8,145 -9.30% 7.60%

Inventory is down, new listings are down

A trend that spanned the country in January was a drop in for-sale homes, and it was no different in Chicago. From Jan. 2016 to Jan. 2017, the number of homes up for sale in the city fell 14 percent. However, even though Chicago’s inventory dropped 14 percent, compared to many other major metros, the drop was moderate. In Boston, for-sale homes dropped more than 27 percent, in Denver 28 percent, and in Seattle the market lost 30 percent of its for-sale inventory year-over-year.

City All Homes for Sale Month Over Month % Change Year Over Year % Change
Chicago 33,892 -0.20% -14%

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