Chicago Real Estate Market Update May 2020

Posted by Andreas Holder on Saturday, July 4th, 2020 at 3:11pm.

Overview

All information and statistics per Chicago Association of Realtors

(The City of Chicago market updates include the residential real estate activity within the 77 officially defined Chicago community areas as provided by the Chicago Association of Realtors)

  • In May, 1,679 residential properties were sold in Chicago. This was a 43% decrease from May 2019
  • The median sales price of all properties sold in the city was $312,500, a slight decrease of 0.8% from May 2019
  • Listings stayed on the market an average of 83 days, a 13.7% increase from May 2019

State of the Market

While the effects of COVID-19 continue to affect the economy as a whole, real estate activity is beginning to recover in most of the country and especially in Chicago. According to Freddie Mac, mortgage rates have been below 3.3% for more than four weeks and are approaching new all time lows, creating strong buyer interest. This resulted in increased showing activity across much of the country. 

As a result of favorable mortgage rates and loosening of luck down procedures, buyers have been quicker to return to the housing market than sellers. Homeowners are still reluctant to list their houses due to the uncertainty of having strangers walking through their homes. The increased showing activity and interest from buyers and the relative reluctance from sellers are creating a reduced inventory of available homes and higher demand for the houses that are for sale. Against all expectations, prices are trending up and supply is short, creating a seller's market. 

Inventory

The city of Chicago's inventory is down 22.1% from 10,022 homes in May 2019 to 7,811 homes in May 2020. The months supply of inventory declined 15.2% from 4.6 months in May 2019 to 3.9 months in May 2020. 

See the stats reports for May 2020 for Chicago neighborhoods here: 

 

 

 

 

 

 

Andreas Holder, Chicago Real Estate AgentAre you thinking about buying a home this year in Chicago? Andreas Holder can help! Let him be your guide to the downtown Chicago real estate market and help you find a home that not only matches your needs, but your lifestyle too.
Learn more about Andreas or start your home search now.

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