June 2020 Chicagoland Real Estate Market Update

Key Data Sets Indicate a Consistent Increase in Market Activity & a Busy Second Half of the Year

Let’s look at what's been happening in Chicagoland real estate during the month of June. At the end of last month, we saw a strong rebound with activity numbers close to where we were at this time last year. Ever since then, the activity numbers have surpassed where we were this time last year! You've probably seen me on Facebook and on my YouTube channel saying how busy it is out there and how we need more inventory. At this rate, if things keep going the way they have been, we're set to have a very busy second half of 2020.

For my data-driven people, I've got some numbers to share. The first one is homes under contract taken directly from our local MLS in Chicago. For the period of June 1-8, we are 22% above the numbers from this time last year, so houses are definitely selling.

The next data set is active versus temporarily off-the-market listings. When COVID-19 hit these numbers went really high because sellers were uncertain and didn't want people entering their homes so they temporarily took their houses off the market. This number has continually decreased over time as sellers are realizing that they can sell their houses safely and they're putting their houses back on the market. 

Now, let’s look at the data on open houses. When COVID-19 hit, we were not allowed to host open houses to the public. They all had to be done virtually but now we are allowed to host in-person open houses as long as certain guidelines are met. With this shift, we’re seeing the number of open houses increase, which is great for buyers who enjoy going to open houses to start their home searches.

As far as new listings go, inventory has increased 22% from last week. However, when you compare it to last year, the numbers are still lower and inventory is still considered low. 

In March, when COVID-19 hit home showings plummeted but have been steadily rebounding. As of June 7th, showing activity actually higher than last year at this time, which is a sign of a sellers market here in Chicagoland and throughout several parts of the country. What does that mean? How can you determine what kind of market we’re in? It all revolves around a concept called absorption rate and months supply. Let me explain.

If there are no more listings allowed to hit the market, that month supply number indicates how many months it'll take to deplete the inventory down to zero. Any time the month's supply number is above six that means more inventory and makes it a buyer's market, as there’s more for a buyer to choose from. A five to six-month supply can be considered a stable market environment. Anything below a five-month supply is considered a seller’s market, as there’s less inventory and less to choose from. 

If you're curious your area is in a buyer's or seller's market, just reach out to me and I'll gladly pull the numbers for you. In Wheaton, the month’s supply is 5.72. The list to sale price ratio shows that houses are selling just under 98% of asking prices, this data point is so important to know when you're listing your house as it show whether or not you’ll have a more or less competition. Looking at Du Page County and the Western Suburbs, the month’s supply is even lower at just under 3 indicating a very strong seller's market.

My last data point to share with you is the area market survey. I pulled the data for Wheaton over the past six months. This is another important stat for you to know if you're going to be listing your house, as it helps us strategize around pricing. Let's say you're on the fence, you're looking at pricing your home somewhere between $300,000 and $400,000. Looking at the activity in Wheaton, there were 53 houses in the past six months that sold between $300,000-$350,000. Now, let's say you were thinking about pricing your home at $365,000. The data shows that only 38 houses have sold in that price range, so it may be a better strategy to price your home in the range where most houses are selling. 

I hope this information has been helpful for you. If you have any questions, feel free to reach out to me. I'm happy to share any data that I have available with you, contact me today at jnewsom@bhhschicago.com or (773) 580-5840.