Chicago Housing Market Gets a Spring Boost

April 21, 2012

Chicago, one the biggest cities to take a hit due to the housing crisis, has finally had some good news come its way regarding the housing market this spring.

The third largest metropolitan city in the country, Chicago saw March home sales shoot up 24 percent over the same period last year. A total of 6,590 single-family homes and condominiums sold in the nine-county Chicago area, up 23.8 percent from the 5,323 sales posted in March 2011, the Illinois Association of Realtors said Thursday.

Chicago Skyline“There are encouraging signs in the market,” Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) at the University of Illinois, said in the Realtors’ statement.

The City of Chicago witnessed a pleasant bounce back as home sales rose 12.1 percent from March of 2011. A total of 1,626 homes sold in March compared to 1,450 in March 2011. The median price of home sales in Chicago rose 5.2 percent from a year ago to $171,750.

The median price refers to the point at which half the home are sold for more while half the homes are sold for less. Basically, the median is the middle price in a series of homes sales.

Chicago condos took in good numbers as well for the month of March. A total of 976 condos sold resulting in an increase of nearly 20 percent compared to March 2011. The median price of condos were $213,250, a 4 percent increase from the same time last year.

Investors eager to buy up the many foreclosures in the Chicago real estate market did so with vigor. Hoping to renovate and resell the distressed properties or turn them into rentals, investors have swarmed the market resulting in distressed homes accounting for 46 percent of transactions throughout Cook, DuPage, Kane, Kendall, Lake, McHenry and Will counties.

“There’s no doubt that these are strong numbers to open the spring selling season,” said Loretta Alonzo, president of the Illinois Association of Realtors. “To see such good sales numbers, coupled with a measure of price stability is encouraging news no matter what side of a real estate transaction you happen to be on.”

With the slate of foreclosures being resolved, low interest rates and attractive prices across the board, Chicago may finally be turning a corner. Hopefully these encouraging numbers can sustain for at least six months in order for a true recovery to be considered valid.

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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