The number of houses on the Chicago market in February was at its lowest level in 13 years.
As of Feb. 29, there were 2,806 houses on the market in the city, according to data released today by the Chicago Association of Realtors. That’s about 14 percent below the number listed a year earlier, when inventory was also at a record low.
It’s also 19 percent below the same time two years ago, when inventory was at a then-record low.
The downward slide in the first part of 2020 bucks a traditional pre-spring upward trend. Super-slow improvement of Chicago’s home prices could be to blame, as could people’s hesitation to make a big move at a time when the city’s and nation’s futures seem uncertain.
Home values aren’t what sellers “hoped to be,” said Niko Apostal, an agent at Keller Williams Chicago-Lincoln Park. Sellers “don’t feel they can get the price they need to get out” and pay off the unpaid balance on the mortgage.”
Pair that with property tax uncertainty and volatile market conditions nationally over the coronavirus outbreak, and “there’s no urgency to sell the house,” Apostal said.
The stock of houses for sale is the smallest of any time since January 2007, the earliest data available from CAR. At that time, there were about 6,000 houses on the market in the city, and in summer of both 2007 and 2008, there were nearly 10,000 houses for sale in the city.
The inventory figure is citywide and covers houses at all prices. Apostal said the shortage is most acute for entry-level homes, which range from $350,000 to $1 million, depending on the neighborhood. Above about $1.2 million, he said, “there’s too much” supply. In the $1.25 million to $1.75 million range, there is enough inventory on the market today to fuel nearly eight months of sales.
In early 2019, the inventory was only slightly above 3,000 before rising past 4,000 during the peak spring and summer selling months. This year began with 3,097 houses listed, according to CAR, and in each of the eight subsequent weeks it dropped a little lower.
A question will be whether the spring upturn dawns in coming weeks, or whether coronavirus and other worries continue to hold people back from putting their homes on the market.
These figures are for houses in the city only. The inventory of condos and townhouses in the city, while running about 3 percent below last year’s figures, has been rising along with the seasonal cycle. Figures for suburban markets are not available.
