August a Hot Month in City Housing Market as Chicagoans Seek Better Shelter-at-Home Alternatives

The temperature of the Chicago housing market could hardly have been hotter in August. Total city home sales were up 10.7% from the same month last year to 2,830 units, and the median sales price gained 15.9% to $335,000 as city residents sought out better alternatives for our shelter-at-home era.

After four months of lagging sales resulting from the initial impact of the coronavirus pandemic, July home sales slightly surpassed their 2019 level but August sales far outstripped the prior-year numbers, noted Mary Jo Nathan of the Charese Team at Compass Roscoe Village. Helping deliver that result have been a combination of ultra-low interest rates and strong demand from buyers, many now working from home, often sharing space with their children, who haven’t returned to in-person learning

“People are finding their homes are too small for their new reality, resulting in increased demand for detached homes,” explained Ms. Nathan. “That’s why detached sales in the city were up 17.3% over August of last year, and the median price shot up 23.2%. We expect the market to cool off somewhat in the fourth quarter, but it’s still a great time to sell a house.”

The sizable increase in the median sales price of a single-family home reflects the lack of inventory in that segment. Based on August sales, the there was just a 1.7- month supply on Sept. 1, compared to a 4.3-month supply of attached homes.

Average market time for Chicago detached homes sold during August was 74 days, up from 70 days a year ago.

The sales data analyzed by Ms. Nathan is compiled by Midwest Real Estate Data, the regional multiple listing service.

While the detached home market was clearly the strongest segment of the August housing market, sales of attached homes also showed improvement. Attached sales, largely of condominium apartments and townhouses, were up 6.7% to 1,696 units for the month, and the median sales prices climbed 15% to $360,000.

“We are seeing strong demand for condos in smaller buildings, especially units offering nice outdoor space,” said Ms. Nathan. “Again, we believe that a lot of current demand is being shaped by lifestyle changes forced by the pandemic, and it seems likely those forces will be with us well into 2021.”

Compass
2044 W. Roscoe St., Chicago, IL 60618
Mary Jo Nathan
773-398-3814
maryjo.nathan@compass.com

Mary Jo Nathan is affiliated with the Charese Team based in the Compass office at 2044 W. Roscoe St., Chicago. She has specialized in North Side residential real estate since 2000.

This release was published on openPR.