June 2010 Market Update

Posted on July 7th, 2010 in All Articles, Market Conditions, Neighborhoods.
Chicago June Market Data

The original tax credit deadline came and went.  It ended up getting extended, but most deals that could close by June 30th did.  I’ve pulled some market data for the whole city to see how June sales for condos and single family homes compared to May sales to see if the tax credit had an effect month to month.  All data is pulled from the MLS and is for the City of Chicago only.
Single Family Home Sales Volume and Average Sales Price – Month to Month 2010

Here is the average sales price of single family homes in May and June month to month:
May:  $240,503
June:  $251,667
Month over month increase of 4.5%
Here is the total number of single family homes sold in May and June:
May:  841
June:  999
Month over month increase of 15.9%
Condo Sales Volume and Average Sales Price – Month to Month 2010

Here is the average sales price of condos in May and June:
May:  $318,440
June:  $327,865
Month over month increase of 2.9%
Here is the total number of condos sold in May and June:
May:  1290
June:  1570
Month over month increase of 17.9%
Continued from newsletter….

Clearly the tax credit boosted the volume of sales in the City, but price increases were modest at best.  Now that we’ve looked at the month over month gains, lets take a look at the bigger picture by seeing how this year compares to last year.

Single Family Home Sales Volume and Average Sales Price – Year Over Year

Here is the average sales price for single family homes in May ’09 compared to May ’10:

May ’09: $191,915

May ’10:  $240,503

Year over year increase of  20.3%

Here is the number of sales for single family homes in May ’09 compared to May ’10:

May ’09:  691

May ’10:  841

Year over year increase of 17.9%

Here is the average sales price for single family homes in June ’09 compared to June ’10:

June ’09:  $224,888

June ’10:  $251,667

Year over year increase of 10.7%

Here is the number of sales for single family homes in June ’09 compared to June ’10:

June ’09:  812

June ’10:  999

Year over year increase of 18.8%

The single family home market has clearly seen a boost somewhat in the last year.  With year over year increases of 20.3% in May and 10.7% in June for single family average sales price.  Sales volume is up year over year too, up 17.9% in May and 18.8% in June.  Although this may paint a somewhat positive picture you have to remember that real estate is very local.  The key is to make sure you have a pro to help you navigate your way through these markets so you know what you are getting into.

Condo Sales Volume and Average Sales Price – Year Over Year

Here is the average sales price for condos in May ’09 compared to May ’10:

May ’09:  $334,343

May ’10:  $318,834

Year over year decrease -4.7%

Here is the sales volume for condos in May ’09 compared to May ’10:

May ’09:  923

May ’10:  1290

Year over year increase of 28.5%

Here is the average sales price for condos in June ’09 compared to June ’10:

June ’09:  $326,058

June ’10:  $327,865

Year over year increase of 0.6%

Here is the sales volume for condos in June ’09 compared to June ’10:

June ’09:  1303

June ’10:  1570

Year over year increase of 17.1%

The condo numbers are interesting.  The average sales price year over year is in slight decline or close to flat.  Yet we see a surge in year over year sales volume, 28.5% in May and 17.1% in June.  Given the near stoppage of new construction projects, especially condos across the city, these increases in sales volume should hopefully help eat away at the available inventory out there.  Something we may look at in a future article is to see what percentage of these sales were new construction or resale.  The worry here could be that much of the increase in sales could be from distressed property resales, therefore not eating away at the new construction inventory which can help to stabilize the condo market.

To view the charts and data for this article click here.