Chicago's median sales price jumped 22 percent YoY this past winter
Understanding the Chicago real estate market is important for anyone who plans to buy or sell a home right now. Many home buyers are often worried about whether or not they are making a good financial decision. In other cases, individuals who are selling their homes have wanted to know when to sell, considering factors such as how long it will take to sell the home and how much they will get for it. The best way to understand the market is to look at data over a few years. Doing this before you buy or sell is critically important.
Median Chicago Home Sales Price
One of the key components of buying or selling is the price. Chicago home prices are improving. For example, the median sales price for homes in December of 2012 was $153,000 in the area. A year later, the median home sales price is $179,000. That is a significant jump in home sales price. The 22 percent rise is good news for home sellers ready to put their home on the market. Homes are worth more today than they were just a year ago. That also means that, with home prices trending upward, buying now is a wise decision instead of waiting until rates climb higher.
Total Inventory of Chicago Homes for Sale
Also important to consider after Chicago home prices is the inventory. Inventory refers to the number of homes on the market at any given time. In December of 2012, 39,988 homes were listed for sale. In December of 2013, this number dropped by 25 percent to 29,884. For the home seller, this means there is less competition on the market. For the home buyer, it means less choice and the potential for home prices to rise as this number falls. Keep in mind that total inventory numbers also represent confidence in the market.
Median Days on Market
The length of time that property is on the market is also an important factor in buying and selling decisions. In short, if you list your home on the market, you want it to sell quickly. In December of 2012, it took an average of 48 days for a home to sell in Chicago. In December of 2013, this number had dropped to 35 days, a 27 percent drop. People are buying. If you are a seller, that means that you can count on selling your home faster and getting into your new home sooner.
Buying in the Chicago Real Estate Market
Now that you can see that the Chicago housing market is one that you want to be purchasing into, you may be asking where to buy. Some of the most popular neighborhoods to buy into now include Lincoln Park, Loop, DePaul, and Uptown. Uptown home prices are around $250,000 and up whereas many homes for sale in Lincoln Park stand at around $1 million and up. Whereas, home prices in North Lawndale are moving up with a number listing prices of $200,000+ emerging. Other areas to consider for those on a lower budget include Fuller Park, Austin, and Avalon Park.
Overall, the Chicago real estate market is one with plenty of opportunities available for home buyers. In many ways, this real estate market is one to pay attention to closely, both as a buyer and as a seller. It provides an opportunity for home buyers to get real estate that's priced well, and likely to rise in value, and selling quickly.