Sales Declined While Homes Sold Faster and at Higher Prices, RE/MAX Reports

What’s most remarkable is that the July market time of 66 days is the lowest result for any month since 2005 when we began tracking that data.

Activity in the metropolitan Chicago housing market during July reflected the impact of a dwindling supply of homes for sale. Compared to July of last year, closed sales fell 3.5 percent to 11,210 units, while the median sales price gained 4.2 percent to $250,000. Average market time for those homes fell to 66 days, RE/MAX Northern Illinois reports.

“What’s most remarkable is that the July market time of 66 days is the lowest result for any month since 2005 when we began tracking that data,” said Jack Kreider, executive vice president and regional director of RE/MAX Northern Illinois.

“The inventory of homes for sale in the metro Chicago market tends to rise through the first half of the year, peak in July and then fall gradually,” Kreider explained. “At the end of July there were 34,478 homes for sale, which is 9.6 percent fewer than a year earlier and 18.2 percent less than in July 2015. Not surprisingly, that has restrained the total number of sales even though demand for homes remains strong. Sales this July were only 10 percent lower than in July 2015, while the median sales price was 9.7 percent higher and average market time was 13 days less.”

Another factor constraining sales is the shrinking number of distressed properties, a category including foreclosures and short sales. July saw only 847 distressed sales in the metro area, the lowest monthly total since January 2009 when the surge in distressed properties created by the Great Recession was just beginning.

The decline in inventory has been most pronounced in the detached home category, where the number of listings at the end of July was 10.4 percent lower than a year earlier. In contrast, the inventory of attached homes was down only 7.4 percent, and attached sales rose 1.2 percent for the month.

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…

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