May 21, 2014
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The public has finally grown used to talk of a real estate market in recovery. With prices going up, people are starting to wonder if a new bubble is forming. Most metropolitan markets are somewhere between recovery and normalization. Supply is still tight but improving in some areas. What housing really needs is further job and wage growth to support healthy demand levels fueled by new household formations.
New Listings in Chicagoland were up 11.7 percent for detached homes and 9.6 percent for attached properties. Listings Under Contract increased 10.1 percent for detached homes and 4.5 percent for attached properties.
The Median Sales Price was up 5.6 percent to $190,000 for detached homes and 20.8 percent to $167,250 for attached properties. Months Supply of Inventory decreased 16.5 percent for detached units and 25.8 percent for attached units.
April’s job growth was above expectations. Growth is likely to accelerate through the year, but the types of jobs being created is also important. We’re producing more low-wage jobs as opposed to high-wage jobs. That’s not conducive to increasing the number of potential buyers. It also means less disposable income sloshing around. Even so, some local markets may pause but are unlikely to falter thanks to suppressed supply levels and an improving sales mix. Don’t confuse temporarily weak demand indicators for stagnation.
MRED real estate professionals can log into MREDLLC.com and click on the Statistics tab to get the latest Lender Mediated and Monthly Market Indicators Reports.
Any questions? Please contact MRED’s Help Desk at 630-955-2755 or mailto:help.desk@MREDLLC.com.