Inventory shortages continue to make the homebuying market competitive as supply is unable to keep up with demand.
Median home sale prices in February rose more than 14% from last year, the largest increase since July 2013, according to a new Redfin report.
The report found 36% of homes sold last month went for above the asking price. At the same time, median-home sale prices, nationally, rose 14.4% year over year to $336,200 in February.
The median sale price of a home in Chicago was $275,000, a 1.5% increase month over month and a 12.7% increase over last year. In February, 6,144 homes sold in the Chicago area, up 14.6% from last year.
A decline in homes for sale hit a record low in February. While both closings and pending sales increased from last year, 5% and 21%, respectively, a decline in homes for sale hit a record low last month, as they fell by 16% — the second largest decline since 2012. New Chicago listings fell 27.2% from last year.
Time on market also dropped last month as the report found a typical home sold in February went under contract in 32 days — 23 fewer than last year.
“This is the strongest seller’s market since at least 2006,” Redfin Chief Economist Daryl Fairweather said in a press release. “Buyers outnumber sellers by such a huge margin that many homeowners are staying put because they know how hard it would be to find a place to move to.”