Chicago Real Estate Market Update: July Home Sales Fall Off Cliff
Up until the Chicago real estate market update for June there were signs on the horizon of the market slowing down but closings were still looking pretty good. We knew it couldn’t last and, sure enough, the market cratered in July. Closings were down 25.9% from last year. Once again, that was the biggest drop in 2 years but, since the last 2 years were distorted by Covid culture, let’s compare it to 2019. July was down 8.6% from then and, as you can see in the graph below, it was also the lowest sales level in 10 years.
In a couple of weeks the Illinois Association of Realtors will report that closings were down 27.6% because they insist on doing things differently than I do.
Chicago Home Contract Activity
For four months now contract activity has been signaling to us that sales were about to take a hit. If you’re writing fewer contracts you will be closing fewer sales. It’s that simple. The plunge in July contracts was even bigger than we had in June, falling 29.1% from last year which means we have more very slow sales months in store for us. Contracts are down on both condos/ townhomes and single family homes but clearly the condo/ townhome market is taking a bigger hit. However, read on because that doesn’t necessarily mean what you think it does.
Pending Chicago Home Sales
Future closings also look pretty grim because pending homes sales are also down, hitting a new record low since I’ve been tracking the data. They were down 1359 units from last year and 788 from last month. Both numbers are extremely large for this metric, which you can get a really good sense of from the graph below. In the simplest terms this means that the current sales pipeline is pretty thin.
Distressed Chicago Home Sales
For the first time in recent history the percentage of home sales that are distressed actually went up by a noticeable amount. 2.3% of July’s sales were distressed compared to 1.3% last year. But this is nothing more than a return to more normal distressed property sales after they were depressed by the pandemic foreclosure moratorium. As I’ve been reporting, there are no signs of a resurgence of foreclosures so I don’t expect these percentages to rise much higher.
Chicago Home Inventory
July marked a significant change in Chicago’s home inventory situation. For the first time in a few years the months of supply actually increased. Attached inventory rose from a 3.8 month supply last year to 3.9 months this year while detached inventory went up by a much larger amount – from 2.9 months to 3.5 months. Both of those numbers are still on the low side but it definitely demonstrates how the market has changed.
Chicago Home Sale Market Times
With all the data pointing to a slow down in the market I was surprised to see that homes are still selling…not just fast but faster. Attached homes that sold in July went under contract in only 48 days, down from 66 days last year, while detached homes sold in only 40 days, down slightly from 42 days last year. This may seem a bit inconsistent with the higher inventory levels but keep in mind that these went under contract when inventory was still lower than last year.
#RealEstate #ChicagoRealEstate
Gary Lucido is the President of Lucid Realty, the Chicago area’s full service real estate brokerage that offers home buyer rebates and discount commissions. If you want to keep up to date on the Chicago real estate market or get an insider’s view of the seamy underbelly of the real estate industry you can Subscribe to Getting Real by Email using the form below. Please be sure to verify your email address when you receive the verification notice.
Getting Real On Facebook
Subscribe To Getting Real
Meet The Blogger
Gary Lucido
After 20 years in the corporate world and running an Internet company, Gary started Lucid Realty with his partner, Sari. The company provides full service, while discounting commissions for sellers and giving buyers rebates.
Recent posts
Chicago Real Estate Market Update: July Home Sales Fall Off Cliff »
Case Shiller: Chicago Area Home Prices Still Rising »
No Sign Of A Surge In Chicago Foreclosure Activity »
Chicago Real Estate Market Update: June Sales Finally Take A Hit »
Case Shiller: Chicago Area Home Prices Not Yet Affected By Higher Mortgage Rates »
Featured Posts
How Realtor’s Lie To Get Your Business
The #1 Myth About Selling Your Home
The #2 Myth About Selling Your Home
Tags
market conditions (594)
Chicago home prices (242)
Case Shiller index (155)
Chicago foreclosures (140)
Chicago monthly real estate market update (94)
industry issues (92)
real estate agents (66)
Chicago real estate market (64)
foreclosures (60)
Neighborhood news (59)
Monthly Archives
August 2022
July 2022
June 2022
May 2022
April 2022
March 2022
February 2022
January 2022
December 2021
November 2021
October 2021
September 2021
August 2021
July 2021
June 2021
May 2021
April 2021
March 2021
February 2021
January 2021
December 2020
November 2020
October 2020
September 2020
August 2020
July 2020
June 2020
May 2020
April 2020
March 2020
February 2020
January 2020
December 2019
November 2019
October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
Blogroll
Crib Chatter
Real Estate Decoded
Smart Mortgage Advice
The Real Deal – Chicago
Latest on ChicagoNow
Chicago Real Estate Market Update: July Home Sales Fall Off Cliff
Thinking about a lost summer
ChicagoNow’s Best Posts for July 2022
Beat the Baby Blues: Herbs May Help Manage Postpartum Depression
Ave Atque Vale, Chicago Now
Posts from related blogs
Real Estate Royalty
Most recent post: A Gold Coast Masterpiece, the Architect George Maher, and the Joffrey Ballet!
North Shore Real Estate Chatter
Most recent post: Top North Shore Luxury Home Sales in 2021
MCwriting
Most recent post: Travel in a “Post-Covid-19” World and How Businesses are Preparing for it
More from Lifestyle: Real Estate
Read these ChicagoNow blogs
Cubs Den
Pets in need of homes
Hammervision
Read these ChicagoNow Bloggers
Carole Kuhrt Brewer
Dennis Byrne
LeaGrover
About ChicagoNow
•
FAQs
•
Advertise
•
Recent posts RSS
•
Privacy policy (Updated)
•
Comment policy
•
Terms of service
•
Chicago Tribune Archives
•
Do not sell my personal info
©2022 CTMG – A Chicago Tribune website –
Crafted by the News Apps team