Chicago Housing Market Plagued by Inventory Shortages as Demand Rises
By Gary Lucidoi @ Chicago Now
January 17, 2018

December home sales in Chicago came in 3.9% higher than last year. That’s the highest year over year growth posted for the Chicago real estate market in 9 months and sales were higher than 8 of the previous 10 years.

Key Takeaways

  • Chicago home contract activity decreased 4.1% in December
  • Available pending homes for sale in Chicago fell to record low supply of 1.52-months
  • Attached homes (condos and townhouses) were at a 2.5-month supply
  • Detached homes were at a 3.4-month supply at the end of December

You can see the long term history in the graph below and if you look at the light blue moving average line you can see that sales aren’t really growing that fast.

Chicago Home Contract Activity – Looking at contracts written on homes gives us some idea of what the closings (sales) are going to look like for the next month or two.

Unfortunately, contract activity has also been showing slow growth and has even been negative, as was the case in December: -4.1%.

Pending Home Sales – Pending home sales is another indicator of what sort of sales volume we are likely to see down the road and it’s also flashing red.

On a months of supply basis December hit a new low of only 1.52 months, compared to 1.76 months last December.

Chicago Home Inventory – The culprit in depressing home sales continues to be a shortage of homes to buy. Both attached (condos and townhomes) and detached homes remain at very low levels.

There was only a 2.5 month supply of attached homes at the end of December, the same as last year. However, the supply of detached homes fell dramatically to a 3.4 month supply from 4.4 months last year.

View the original article at Chicago Now