MRED Chicagoland Report for July, 2014
Although low supply and tight credit standards are still hurdles to recovery, prices continue to rise in most local areas. Job growth has strengthened lately, but wage growth has not kept pace with the price gains we have seen. Buoyed by stable and continuously lower interest rates, affordability is still historically high yet below its all-time peak. Rising inventory levels will lead to more choices for qualified buyers, but as the summer reaches toward fall, the prospect of more homes coming on the market begins to wane.
New Listings in Chicagoland were up 12.1 percent for detached homes and 10.3 percent for attached properties. Listings Under Contract increased 8.1 percent for detached homes and 3.5 percent for attached properties.
The Median Sales Price was up 7.1 percent to $225,000 for detached homes and 10.5 percent to $179,000 for attached properties. Months Supply of Inventory increased 1.4 percent for detached units but was down 6.8 percent for attached units.
The U.S. Department of Commerce reported that GDP grew at a 4.0 percent annual rate in the second quarter and that the first quarter was less bad than previously thought. Consumer spending in the first quarter rose 2.5 percent, which is encouragingly in tandem with savings rates. Increased consumer spending means more demand for goods and labor; increased savings rates means more resources for down payments. With rates still low, rents still rising and private job growth accelerating, it’s becoming more and more difficult to side with the housing perma-bears.
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. MRED’s July Market Statistics package will be posted on Thursday, August 21st.
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