Chicago’s on-market housing inventory at record low

Residential sales have bounced back, but inventory hasn’t kept up

Chicago /
Jan.January 07, 2021 02:47 PM
Chicago’s on-the-market housing inventory sunk to its lowest point in over a dozen years. (Illustration by The Real Deal)

Chicago’s on-the-market housing inventory sunk to its lowest point in over a dozen years. (Illustration by The Real Deal)

The Chicago area housing market has been a case study in extremes.

The pandemic sent sales into a tailspin in the spring and part of the summer. Now, inventory of homes on the market has plummeted, according to Crain’s.

As of December, there were enough homes listed to sustain just 1.8 months worth of sales, the lowest inventory since January 2008, Crain’s reported, citing Midwest Real Estate Data.

Generally, a four- to six-month supply of homes on the market notes a functioning market.

Sales took off beginning in August, when 13,360 homes sold across nine counties, representing nearly 20 percent year-over-year increase. In Chicago alone that month, 2,813 homes sold, up 8.2 percent from 2019.

The rise in demand — suburban luxury sales also jumped — meant that most of the decent supply on the market was soon snapped up. Sellers have not listed properties at the pace they once did and new construction, slowed by the pandemic, has not kept up, either. The diminished supply compares to a near eight-year run of inventory hovering at between three and seven months. That streak ended in October, when it dipped.

A new nationwide report in Realtor.com found the lack of inventory widespread. It showed that as of late December, Chicago had about 34 percent fewer homes on the market compared to the same period in 2019.
There are supply exceptions.

The condo market in the Loop has stalled out. Crain’s reported in December that there was two years worth of unsold condo units, after buyers decided to head for the suburbs for more space amid the Covid restrictions.

Jennifer Ames, a partner at Engel & Volkers Chicago, told Crain’s that “the market is definitely tighter on single-family homes outside downtown, where you see a lot of inventory and longer market times.” [Crain’s] — Alexi Friedman 


Related Articles

arrow_forward_ios
(iStock)
Chicago mortgage refis soared in 2020
Chicago mortgage refis soared in 2020
Michael Jordan’s 32,000-square-foot mansion in Highland Park has been on the market for nearly a decade. (Getty, Google Maps)
Michael Jordan’s $1M property tax albatross
Michael Jordan’s $1M property tax albatross
Nicholas Chabraja, above, and his wife, Eleanor, relisted their Lake Forest mansion (Redfin/Ann Lyon and Jeffrey Folker of @properties)
Lake Forest mansion relists, hoping to ride home sales wave
Lake Forest mansion relists, hoping to ride home sales wave
(Arlington Park, Google Maps)
Churchill Downs looks to sell 326-acre Arlington Park race track
Churchill Downs looks to sell 326-acre Arlington Park race track
(iStock)
Gone in no time: Chicago homes sales speed up
Gone in no time: Chicago homes sales speed up
Photo illustration of the Silver Lake Country Club (Silver Lake CC, iStock/Illustration by Kevin Rebong for TRD)
Orland Park golf club hits market as residential redevelopment
Orland Park golf club hits market as residential redevelopment
(iStock, Wikipedia Commons/Illustration by Alexis Manrodt for The Real Deal)
Chicago’s agent count jumps as home sales rise
Chicago’s agent count jumps as home sales rise
Alderman Byron Sigcho-Lopez, at left, supported the measure to limit single-family development near the 606 and parts of Pilsen, while Alderman Raymond Lopez opposed it. (Facebook via Sigcho-Lopez and Lopez respectfully)
City Council takes aim at gentrification
City Council takes aim at gentrification
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...