The past two years have been interesting for real estate in the Chicago metro. There is a lot to cover so we are doing a 5-part post. We will publish these reports on a weekly basis. If you wish to receive the full report right away, please reach out to a Soloma team member or click here if you have not been in contact with a team member. This is not meant to be investment advice; this is our interpretation of what has happened in the Chicago real estate market based on data and our team’s experience.
Chicago Suburbs Single Family Homes
The Chicago suburbs were significant beneficiaries of world events in 2020 and 2021. As mentioned earlier, we believe that many buyers who were originally interested in the city, shifted their preferences towards less dense neighborhoods within the city or the suburbs. The data seems to backup this idea up as we saw transaction volume increase 14.0% yr/yr to a whopping 70,093 units sold and average sale price increased 9.0% yr/yr to $346,483. During this period, days on market declined 3.5% yr/yr to 82 days.
The following year in 2021, transaction volume increased again, this time by 7.8% yr/yr to 75,571 units and average sale price increased a material 14.1% yr/yr to $392,200 while days on market declined 47.6% yr/yr to only 43 days. In most cases there are multiple offers on homes within days of being on the market and buyers would find creative ways to get their offer more attention (i.e., writing personal letters, etc.).
Chicago Suburbs Condos & Townhomes
Condos and townhomes also performed well in the suburbs, but not nearly as well as single family homes in the suburbs. Specifically, 2020 transaction volume increase 5.1% yr/yr to 25,468 units sold and average sale price increased 4.4% yr/yr to $204,946. During this period, days on market remained relatively flat at 64 days.
The following year in 2021, transaction volume increased again, this time by a much higher amount of 21.4% yr/yr to 30,911 units sold and average sale price increased 9.7% yr/yr to $224,806. Days on market declined by 35.9% yr/yr to only 41 days. As with single family homes, there were typically multiple offers within days of being on the market.
We will be posting part 5 next week in which we discuss what all these trends mean for you and what the expected outlook is from some of the largest financial institutions. We will also provide a conclusion. If you don’t want to wait, reach out to a team member via the contact form or click here if you want it emailed directly to you automatically.
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