Metro Chicago Real Estate Market Saw Faster Sales of Fewer Homes in August, While Median Price Continued to Climb, RE/MAX Reports

Attached homes, whether condos or townhouses, are often a moderately priced alternative for those who want to buy but are frustrated by the limited supply of affordable listings in the detached market.

August home sales in the metropolitan Chicago real estate market continued to show the impact of a limited supply of property listings. Compared to August 2016, total sales fell 2.5 percent to 11,505 units, the median sales price climbed 3.5 percent to $240,000, and the inventory of homes for sale was down 7.8 percent to 34,619 units.

The most obvious result of the limited inventory has been the rapid pace at which homes are selling. Residences sold in August were on the market for an average of 66 days before finding a buyer, down from 76 days a year earlier. The August average matched that recorded in July, which was the lowest average market time for any month since RE/MAX began tracking that data in 2005.

“The inventory situation doesn’t appear to be improving yet,” noted Jack Kreider, executive vice president and regional director of RE/MAX Northern Illinois. “As was the case in July, the August inventory decline was most pronounced among detached homes. Those listings dropped 8.7 percent, while listing of attached homes fell 5.1 percent.”

However, he also pointed out that a declining inventory doesn’t necessarily mean fewer sales.

“One example of that was in Kane County where August sales were up 2.5 percent although the inventory there declined 12.7 percent and represented less than a three-month supply of homes. In contrast, sales fell 2 percent in Chicago, but the inventory rose 3.4 percent from last August, and there was a 3.2-month supply of homes,” Kreider reported.

Sales data used by RE/MAX is collected by MRED, the regional multiple listing service. It covers detached and attached homes in the Illinois counties of Cook, DuPage, Kane, Kendall, Lake, McHenry and Will. Detached homes are typically stand-alone single-family dwellings. Attached homes include condominium and cooperative apartments along with townhouses.

August sales were lower in five of the seven metro counties and in Chicago, with McHenry joining Kane in recording a modest increase. The median sales price advanced in five…

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