Good news for home buyers in Chicago: a slower-moving market may help keep price increases in check this year.
Let’s look at the amount of time it takes to sell a house in Chicago – currently about 145 days. Days on market (DOM) is an important measure when trying to understand how much demand there is from buyers. According to Altos Research data, homes in Chicago are spending more days on the market than last year.
And if we look at the percent of properties that are getting relisted (off and then back on the market), the market also looks a tad bit cooler than last year. Relisting happens when sellers can’t find their price or when contracts fall through. More relistings implies a weaker market.
With these trends, it looks like Chicago home buyers may have a bit more leverage on pricing than they did last year. Though home prices will still climb broadly in Chicago as with most of the rest of the country. In fact, based on current demand trends for 2015, we’re looking at about an 8% price increase for Single Family Homes this year in Chicago, down from a solid 10% last year.
So while buyers in red-hot markets like San Francisco and Los Angeles are struggling with low inventory and steep price increases, the outlook for home buyers in Chicago appears to be a touch more sunny. Encouraging news for people braving the cold every weekend to find a home in the Windy City.
Want more insights into the Chicago housing market? Check out Altos Research data for Realtors and Brokers.