CHICAGO, Oct. 18, 2018 /PRNewswire/ -- The
metropolitan Chicago housing
market experienced a marked decline in September home sales
activity that led to a -3% fall in total home sales during the
third quarter of 2018 when compared to the same period last year,
according to an analysis by RE/MAX Northern Illinois. Sales for the
quarter totaled 31,454 units.
"Based on our research, the September sales slowdown, with sales
off -10.9% from the year-earlier total, seems primarily to be the
result of two factors," explained Jeff
LaGrange, Vice President of the RE/MAX Northern Illinois
Region. "Housing costs have been rising in 2018. Mortgage rates are
up nationally, and in the Chicago
area we recently have seen some significant increases in property
taxes. So, although the median sales price of homes in the metro
area increased just 12% over the last three years, housing
affordability has declined this year.
"At the same time, some potential buyers are more hesitant these
days," LaGrange continued. "RE/MAX brokers are reporting that
buyers generally want homes that are move-in ready. Those homes
often attract multiple offers, but homes that need considerable
work can struggle to find a buyer."
The September slowdown was especially notable among homes
selling for less than $500,000, where
sales dropped -13% compared to September
2017. Sales of homes priced at $500,000 or more declined just 25 units or
-2.4%.
"At the higher price points, it's more a question of how much
buyers are comfortable spending," said LaGrange. "However, for
entry-level buyers, if the numbers don't work, they're likely to
keep renting."
Home prices continued to climb at a gentle pace. The
median sales price rose +3.9% in September to $240,000, while for the third quarter it was up
+2.3% to $246,500.
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.
Third-quarter sales activity fell in six of the seven counties,
with McHenry gaining +2.5%.
The largest decline was -5.9% in DuPage; the smallest was -1.2% in Kendall. Sales were down -3% in Cook and -3.8% in Chicago.
The median sales price for the quarter rose in six counties and
Chicago, led by increases of
+7.3% in Kendall and
+5.2% in DuPage. The median was up
+0.6% in Cook and +2.6% in
Chicago. Lake recorded a -2.4% decline.
Average market time for the third quarter was 63 days, five days
less than in 2017. All seven counties saw lower market times.
Sales of Detached Homes
Detached-home sales were relatively resilient during the third
quarter in the metro area, declining -2% to 19,988 units and
dropping -8.8% in September to 5,416 units. The median price rose
moderately, up +3% for the quarter to $267,900, while gaining +4% in September to
$260,000. Monthly median prices in
the Chicago area tend to peak in
June and then fall gradually.
Quarterly sales rose +4.9% in McHenry and +1.9% in Kendall but declined in the five other
counties, led by a -5.8% dip in DuPage. Chicago recorded a +1.7% increase. September
sales were lower in all counties and in Chicago. Cook
County, which accounts for about 50% of all detached sales,
had a decline of -11.2%.
Median sales prices, on the other hand, delivered quarterly
gains in six counties, topped by a +7.3% increase in Kane. Lake
had the only decline, dropping -5.3%. September results were
generally similar except that Chicago recorded the largest increase at
+7.5%.
Average market times continued to shorten. The average for
the metro area was 70 days for the quarter and 72 days in
September.
Sales of Attached Homes
The attached-home market, which showed significant strength
earlier in 2018, slowed considerably during the third quarter, with
sales falling -4.6% to 11,466 units, and the median sales price
gaining just +0.7% to $203,000. Sales
flagged notably in September, declining -14.4% to 3,050 units, with
sales in Chicago falling -16.5%,
while Cook County as a whole had a
-12.3% decline.
For the quarter, only Kane had
an increase in attached sales, and it was just +1.6%.
Average market times, however, remained relatively low through
the quarter, with all seven counties and Chicago reporting averages of 58 days or
less.
With more than 2,200 sales associates and 106 offices throughout
the area, RE/MAX Northern Illinois has helped thousands of families
with their home buying and selling needs. For more information,
visit www.remax.com or download the RE/MAX mobile real estate
app.
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SOURCE RE/MAX Network