by Dan Cuckovic, Enterprise Realty Brokers
Chicagoland Real Estate Market is hot. In evaluating the market performance in the first 60 days of the year, conclusive with March 1st 2017, I noticed the sellers are definitely in charge of the market. I analyzed data obtained by Midwest Real Estate Data (MRED), which compiles real estate data from the northern Illinois, parts of northwest Indiana as well as southern Wisconsin.
Below is the analysis of the most important points regarding the real estate market in the first 60 days of 2017:
In the first 60 days the level of market activity was 14,418 closed transactions. In comparison to the 14,630 closed transactions in the same period of 2016 this is a 1.47% decline in activity. In comparison with 2015, when 13,378 transactions were closed in the same period, this is more than 7.7% increase. The slight decline in activity in 2017 versus 2016 is mainly the result of the relatively low supply of real estate, which is below the 2016 and 2015 levels.
The average selling price continues to rise. In the first 60 days the average sales price in the MRED territory rose by 6.00%. While this increase is at the slower pace than the increase of 2016 in comparison to the increase in 2015 (7.61%), the increase is still solid. In my opinion the increase will continue to happen as long as there is a solid market demand and the supply remains low to moderate.
Average Market Time
Average market time at the end of February was 107 days which is 7 days less than the same period in 2016 and 11 days less than 2015. As stated, the low supply and good demand are causing the properties to be sold quickly.
In summary, the real estate market in Chicago remains strong and I anticipate that 2017 will be a solid real estate year. While there are many unknowns ahead of us (new President, likely increase in interest rates, etc.), I am confident that the homeowners have much to look forward to.