In this post, we look at recent home sales data and the analysis of a top Chicago real estate agency leader to determine how fast Chicago homes are selling in 2019.
If you are planning or even just starting to think about selling your home in Chicago, it’s an obvious question to ask yourself:
How fast are homes in Chicago selling?
The rate that homes are selling and the time spent on the market gives you insights into how strong the real estate market is and what the trends are.
Average days on the market in Chicago
A simple market time analysis is available through many real estate databases.
For example, Redfin provides a market trends analysis that is based on the averages of all homes sold.
As of August 2019, Redfin data shows the average number of days on the market for a house in Chicago is 57 days.
This gives you a simple trend analysis but has a couple of flaws. It looks only at averages and only looks at homes that sold.
If you are not looking at how long homes sit on the market without selling, how many get pulled from the market, and when homes are pulled off the market, you’re not seeing the entire picture.
How fast homes sell or don’t sell in Chicago
In order to get a more accurate view of the market that also includes homes that are not selling, you need to give new listings enough time frame that the market gets to play out.
Gary Lucido of Lucid Realty in Chicago performs this analysis each August, using homes that were listed in late February/ early March.
This gives a measure of the market beyond just average homes that sell. It is still imperfect because the results of this analysis will be slightly tainted by the common realtor practice of relisting properties that are not selling in order to make it appear new again and increase visibility. However, it does still give you a wider view.
To summarize these results:
- 24.5% of the listings sell within the first two weeks.
That’s pretty fast but it’s slower than in 2018 when 30% of Chicago houses sold in the first two weeks.
- 4% of the listings get pulled from the market in the first two weeks.
These numbers are comparable to 2018. Most likely many of those homes came back as new listings fairly quickly because that is a short amount of time to have a home on the market before giving up.
- At the end of 30 days 36% of homes have gone under contract and not quite 13% have been pulled from the market.
The market in this regard is definitely slower compared to 2108. Last year 41% of homes were selling within 30 days.
- At the end of the 5 1/2 month period studied, 52% of Chicago homes on the market had sold
This is a lower percentage of sales compared to 57% in 2018. Of homes pulled from the market within this period, 42% were pulled, compared to only 37% last year.
- 2018 was slower than 2 years prior when 64% sold by the end of the time period.
Home sales by age of listing
As noted in the data above, 36% of new listings sell within 30 days but only 18% of the listings that are still on the market at 30 days will sell within the next 30 days.
This is totally consistent with what most realtors realize but sellers often don’t: the longer a home sits on the market the less likely it is to sell.
The longer a home is on the market the more it will exhaust the existing pool of buyers. New buyers will enter the market of course, but it is natural for them to wonder what is wrong with a home that has been on the market for six months and not yet sold.
We hope you find this real estate market analysis interesting and useful!
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The Law Offices of Lora Fausett P.C. provides real estate law services including loan modifications, buying and selling legal assistance, short sales and deeds in lieu, mortgage foreclosure defense, and more.