Chicago-area home sales continued to tell a tale of two rather different markets in August, according to an analysis by the RE/MAX Northern Illinois Region.
Sales totaled 11,421 homes in August, a minimal decline of -0.7% when compared to August 2017, but the results were substantially different for homes selling above or below the $500,000 mark.
The number of homes selling for less than $500,000 totaled 9,953, which was a -2.6% decline from the prior August. At the same time, the number of homes selling for $500,000 or more rose by +4.4% to 1,468 units.
“Those numbers might suggest that the more expensive segment is the stronger, but we believe the reverse is true,” said Jeff LaGrange, vp of the RE/MAX Northern Illinois Region. “Demand for entry-level and moderately priced homes is strong, and sales are being inhibited primarily by a lack of inventory. In the upper brackets, there is ample inventory, and many homes struggle to find buyers.”
At the end of August, the inventory of homes priced under $500,000 was 26,405 units, just a 2.6-month supply based on the pace of August sales. Average market time in August for homes selling in that range was 57 days. According to LaGrange, demand is especially strong for homes priced from $150,000 to $300,000.
In contrast, at $500,000 and above there was a 6.9-month supply of homes available, and the average August market time was 102 days.
Home prices, on the other hand, rose only moderately in all categories across the seven-county metropolitan Chicago market. The median sales price for all homes sold in August was $245,000, an increase of +2.1% over the same month last year.
Sales data used by RE/MAX is collected by MRED, the regional multiple listing service. It covers detached and attached homes in the Illinois counties of Cook, DuPage, Kane, Kendall, Lake, McHenry and Will. Detached homes are typically stand-alone single-family dwellings. Attached homes include condominium and cooperative apartments along with townhouses.
Sales activity in August increased in only thee counties, gaining +0.7% in Cook, +9.1% in Kendall and +2.9% in Lake. Sales were down -6.5% in DuPage, -4.3% in Kane, -1.6% in McHenry and -3.3% in Will. In Chicago, sales slipped -2.4%.
The median sales price gained ground in five counties, led by increases of +6.4% in Kendall and +4.6% in DuPage. Other gainers were Cook, up +1.6%, McHenry, up +3.7%, and Kane, up +2.6%. The median sales price fell -5.9% in Lake and -0.6% in Will, while it was unchanged in Chicago.
Average market times for homes sold in August were less than 60 days in DuPage, Kane, Kendall, McHenry and Will, with Kendall the lowest at 41 days. The averages for Cook and Lake were 65 days and 82 days respectively.
Sales of Detached Homes
Metro-area detached sales totaled 7,289 units in August, down 12 units, or -0.2%, from August 2017. The median sales price gained +3.1% to $268,000. Average market time fell to 70 days from 75 last year.
The small overall decline reflects a market where sales were higher in Kendall, up +5.6%, and Cook, up +4.9%, but fell in the other five counties: -6.5% in DuPage, -8% in Kane, -1.3% in Lake, -0.4% in McHenry and -6.2% in Will.
The median sales price rose in six counties, headed by increases of +6.4% in Kendall, +5.5% in Kane and +5% in DuPage. Only Lake declined, falling -6.6%, while Chicago delivered an +8.7% increase.
Sales of Attached Homes
Softer sales numbers from Chicago were primarily responsible for a decline of -1.7% in August sales of attached homes. Sales for the metro area totaled 4,141 units, 72 less than the prior August. Sales in Chicago fell by 111 units, a -6.5% decline, while Cook County as a whole dropped -4.1%. Attached sales gained +19.1% in Lake, +18.5% in Kendall, +9.6% in Kane and +7,8% in Will, but declined -6.5% in DuPage and -6.1% in McHenry.
The median sales price in the metro area fell -3.6% to $197,500, largely because of a -3.3% decline in Chicago to $309,350. Elsewhere, the median price rose in five counties, gaining +15.3% in Kendall, +5.6% in McHenry, +3.8% in DuPage, +2.4% in Will and +2.1% in Kane. The median price in Cook dipped -2.8%, and Lake had a drop of -3%.
