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Low inventory still driving up Chicago housing prices

by Liz Hughes

Low inventory still driving up Chicago housing prices

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.”

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