AgentMarkets & Economy

Illinois Association of Realtors predicts Chicago real estate to climb in 2016

Supply levels are motivating buyers to act quick and present competitive offers
  • Chicago's housing supply is at three months.
  • Chinese investors are the most active foreign buyers in Chicago, primarily acquiring condos.
  • A decline in distressed sales is benefitting overall home prices.

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Last year, on a year-over-year basis, the Chicago real estate market saw a nearly 8 percent rise in total home sales coupled with a 7 percent spike in median price, according to the Illinois Association of Realtors. This year all indicators--primarily inventory levels--suggest similar year-over-year gains will occur. Lowest Chicago inventory in eight years Entering 2016, the city of Chicago was coming off a month when supply levels declined by 18.4 percent year-over-year, down to roughly three months of supply. This level of inventory is the lowest since January 2008. "Inventory is driving prices," said Dan Wagner, president of the Chicago Association of Realtors, adding because of the shortage of available homes interested buyers must move quicker and make competitive offers. Wagner also pointed to the decline in distressed inventory as another driver of prices, as foreclosures where down in the city 18.4 percent year-over-year in December. If 7 percent price app...