Outlook 2023

For the week ending January 28 here are some numbers on both condos and homes IN the city.

For CONDOS IN CHICAGO

• New Listings decreased 3.3% to 265

• Under Contract Sales decreased 12.6% to 195

• Inventory increased 15.4% to 2,372 For the month of December: • Median Sales Price decreased 6.6% to $275,500

• Market Time increased 24.5% to 66

• Percent of Original List Price Received decreased 2.5% to 95.1%

• Months Supply increased 27.3% to 2.8

For SINGLE FAMILY HOMES IN CHICAGO'

For the week ending January 28: • New Listings decreased 35.2% to 403

• Under Contract Sales decreased 26.4% to 323

• Inventory decreased 22.3% to 3,167 For the month of December: • Median Sales Price decreased 13.0% to $298,500

• Market Time decreased 13.8% to 81 •

Percent of Original List Price Received decreased 0.2% to 96.0% •

Months Supply decreased 4.3% to 2.2 U.S. housing starts declined in 2022, as homebuilders scaled back production due to high construction costs, affordability challenges, and a pullback in buyer demand. According to the U.S. Census Bureau, 1.55 million homes were started last year, a 3% drop from the previous year, and the first annual decline since 2009. However, housing completions increased, with 1.39 million homes completed in 2022, a 3.8% increase from the previous year, when 1.34 million homes were completed.

Given all that, the number of homes for sale is still low. This low inventory is keeping prices from dropping too much further because the sales rate, due to the high costs of borrowing, has “matched” the drop in homes for sale. As long as a huge number of sellers hit the market in April-June the pricing should generally stay stable.

Here is the graphic to emphasize.

Chicago condos for sale in orange. Homes in blue.