Sue Fox, @Properties. Direct 773.816.1788
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The spring of 2012 seems to mark the turning point for the Chicago housing market. We now have several months of solid data showing that home prices and sales are both on the rise, and the latest numbers from May suggest that the market is finally gaining strength.
In May, sales of single-family houses and condos soared almost 20% over the previous year, from 1,703 to 2,037 homes. It looks like buyers are snatching up mortgages with record-low interest rates (or simply paying cash) to take advantage of home prices that rival those last seen more than a decade ago. But prices, too, are now on the rise; the median sale price in May was $203,000, up 6.8% over last May.
Last week, I had a buyer getting ready to make an offer on a condo in Lakeview. She was reviewing comps I’d sent her about six weeks earlier, when we began looking in that area, and she had devised what seemed like a fair price. But wait! I ran the latest comps, which captured all the May and early June sales, and it was immediately clear that prices had already shot up. That’s how quickly this market is moving.
It’s been a relief for many sellers — those who priced their homes reasonably — to see how quickly they were able to sell this spring. Buyers are finally out in force, and they are sometimes getting into bidding wars for the most desirable places. If your home is still on the market this summer, it is likely priced too high. It’s time to take a closer look at the recent sales and adjust your price accordingly, before the inevitable fall slowdown comes.
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