Average Market Time for Home Sales Dropped Below 100 Days in July as Metro Chicago Real Estate Market Accelerated, RE/MAX Reports
Chicago, IL, August 22, 2013 --(PR.com
)-- Eager home buyers reduced the average market time for homes sold during July to only 97 days in the seven-county metropolitan Chicago real estate market. It is the first time the monthly average has dropped below 100 days since September 2006, the height of the housing boom, RE/MAX reports.
The faster pace of July sales was accompanied by robust residential sales totals and strong growth in home values. The RE/MAX analysis compared July sales this year to those of July 2012.
Home sales in the metro area totaled 11,739 units, up 36 percent from the prior July, while the median sales price climbed 19 percent to $204,975. The July results yielded the largest percentage increase in both transactions and median sales price of any month this year.
The supply of homes for sale expanded in July, rising to 34,472 detached and attached properties, which was the largest inventory number for any month this year. Based on the July sales pace, there is currently a 2.9 month supply of homes on the market. A year ago, there was a 5.6 month supply.
Sales of distressed properties (foreclosures and short sales) represented 29 percent of all July home sales, compared to 36 percent a year earlier and just 28 percent in June of this year.
The faster pace of sales was seen in all seven metro counties during July, as were increases in the number of homes sold and the median sales price.
Average market time was less than 110 days in six of the seven counties, most importantly in Cook County where it was just 90 days, including an average of 78 days in the City of Chicago. Cook County accounted for 55 percent of July home sales in the metro area.
The median sales price climbed at least 7 percent in all seven counties when compared to July of last year, led by a 23 percent increase in Cook County to a median of $208,900. The median price increases in the other counties were: 10 percent in DuPage to $241,000, 19 percent in Kane to $173,000, 18 percent in Kendall to $184,500, 15 percent in Lake to $220,000, 7 percent in McHenry to $165,000 and 16 percent in Will to $185,000. The median price in Chicago jumped 25 percent to $247,000.
The number of homes sold in July climbed at least 15 percent year-over-year in all seven counties and Chicago. Sales rose 54 percent in McHenry County to 525 units while they were up 46 percent in DuPage to 1,527 units, 43 percent in Kane to 821 units, 40 percent in Lake to 1,202 units, 36 percent in Will to 1,006 units, 33 percent in Cook to 6,441 units and 15 percent in Kendall to 216 units. Sales in Chicago rose 32 percent to 2,890 units.
Strong demand for attached homes, primarily condominium apartments and townhouses, pushed sales up 39 percent in July when compared to the same month last year, with 4,270 units changing hands. Average market time was reduced to 93 days compared to 148 days in July 2012.
The sharp rebound in this segment of the housing market was reflected in the median sales price of $164,125, which was 23 percent higher than a year earlier.
Sales of detached homes turned in another strong month in July across the metro area. Average market time decreased to 99 days from 102 days in June and 136 days in July 2012. Sales transactions totaled 7,469, which was 35 percent more than in July of last year, and on the same basis, the median sales price rose 15 percent to $225,000.