That’s a wrap on May, one of Chicago’s busiest months in real estate. And it was a busy month for sure. But did it stack up to the intensity levels of last May’s market? Almost, but not quite.
In May 2017, Chicago recorded the lowest median market time in the last decade: 10 days. This May, the median time it took listings to go under contract was one day longer than the year prior.
When you’re comparing to one of the craziest, most competitive months of real estate in recent memory, it’s easy to misinterpret this as a negative thing. Just so ya know, 11 days is still a really fast median market time for May, and for any month of the year, really. See for yourself:
We do have some other reasons to believe that May’s market didn’t quite top last year’s, though. Plain and simple, fewer home sales closed in May. And we might see the same thing happen in June, because there were also fewer homes that went under contract in May.
It seems like this decline in activity has more to do with a change in home buyer demand than a lack of homes on the market. As we’ve seen over the last few months, the number of homes for sale in Chicago has continued to go up. This May, there were 9% more homes for sale than there were last May.
The increase in supply this May was driven mostly by new listings hitting the market, not overpriced listings that have been sitting for a while. Seems like Chicago homeowners have finally gotten the hint that now’s a good time to sell.
But to sum it all up, we’re not worried by these numbers. Sale prices are usually one of the best market indicators we have, and this May, the median sale price increased by a healthy 3.6% over the prior year. So even though there are more homes for sale now, there’s still enough demand out there to keep the market going strong.
Hey, did you know we also have market data for each Chicago neighborhood? The market in Lakeview is different from the market in Logan Square, which is different from the market in West Loop. So check out what’s going on in your neighborhood here.