Enjoy Chicago

The Illinois Association of Realtors is out with the December 2018 numbers.

Sales were down big year-over-year.

In the city of Chicago, home sales (single-family and condominiums) in December 2018 totaled 1,698 homes sold, down 17.5 percent from December 2017 sales of 2,058 homes.

The median price of a home in the city of Chicago in December 2018 was $246,500, down 7.1 percent compared to December 2017 when it was $265,250.

All the data:

• December 2004: 3,719 sales and median price of $267,000
• December 2005: 2,847 sales and median price of $283,000
• December 2006: 2,241 sales and median price of $279,000
• December 2007: 1,629 sales and median price of $287,000
• December 2008: 1,263 sales and median price of $235,000
• December 2009: 1,820 sales and median price of $208,000 (34% short/REO sales)
• December 2010: 1,475 sales and median price of $166,000 (43% short/REO sales)
• December 2011: 1,536 sales and median price of $156,000 (44% short/REO sales)
• December 2012: 1806 sales and median price of $185,000 (39.7% short/REO sales- according to Gary Lucido’s data)
• December 2013: 2137 sales and median price of $210,000
• December 2014: 2020 sales and median price of $228,000
• December 2015: 2077 sales and median price of $242,000
• December 2016: 1974 sales and median price of $260,000
• December 2017: 2,058 sales and median price of $265,500
• December 2018: 1,698 sales and median price of $246,500

December 2018 was a reversal of several trends.

It was the first time since 2011 that median price actually declined.  We know the median doesn’t tell you much because it’s so dependent on the mix but it’s still a reversal of a significant trend.

It was also the lowest level of total sales since 2011. And no month wants to be compared to 2011 given that that was the dark times of the housing bust.

“The current atmosphere presents some opportunities for both buyers and sellers, despite the historically slow time of year for the market,” said Tommy Choi, president of the Chicago Association of REALTORS® and broker at Keller Williams Chicago – Lincoln Park. “With the December rate increase and the start of the government shutdown, consumers were more measured in their approach to buying a home – although the continued decline in market time illustrates that, despite these factors, when they found the right home, at the right price, they were willing to act quickly.”

The average 30-year fixed mortgage was 4.64% in the month, down from 4.9% the prior month but still higher than December 2017 which averaged 3.95%.

December’s statewide market time was 59 days, down from 60 days in December 2017. Inventory declined again, but just 2.4% to 47,048 from 48,196 a year ago.

“Once again consumer sentiment indices are pointing in different directions,” said Geoffrey J.D. Hewings, director emeritus of the Regional Economics Applications Laboratory at the University of Illinois. “Clearly, the uncertainty in the market exacerbated by the partial government shutdown has generated some additional caution among potential home buyers. The outlook for the next three months suggests a continuation of this trend, dampening price increases in Illinois and Chicago.”

Other than one snowstorm in November, weather doesn’t appear to have been an issue for those buyers who went under contract and closed in December.

So what caused the big drop in sales?

Was this a one off?

Or will January be equally as slow?

Illinois home sales lower in December; market closes out a largely stable 2018 (Illinois Association of Realtors, Press Release, January 23, 2019)