AUGUST – As the summer draws to a close, multiple opposing factors and trends are competing to define the direction of the real estate market. After the Federal Reserve lowered its benchmark interest rate on July 31, 30-year mortgage rates continued to decline, approaching all-time lows last seen in 2016. Yet most experts agree these reductions are unlikely to bring sufficient relief, at least in the short term, for first- time home buyers. The lackof affordable inventory and the persistence of historically high housing prices continue to affect the housing market, leading to lower-than-expected existing home sales at the national level.
New Listings in the City of Chicago were down 5.5 percent for detached homes and 1.1 percent for attached properties. Listings Under Contract increased 13.5 percent for detached homes but remained flat for attached properties
The Median Sales Price was up 0.4 percent to $250,000 for detached homes and 3.0 percent to $314,000 for attached properties. Months Supply of Inventory decreased 10.1 percent for detached units but increased 11.3 percent for attached units.As many homeowners refinanced their homes to take advantage of declining interest rates, consumer confidence in housing was reported to be at historically high levels. Even so, real estate professionals will need to monitor the market for signs of continued imbalances. Although the inventory of affordable homes at this point remains largely stable, it is stable at historically low levels, which may continue to push prices higher and affect potential buyers across the U.S
Current as of September 14, 2019. All data from Midwest Real Estate Data reflecting activity within the 77 officially defined Chicago community areas. Report © 2019 ShowingTime.