Chicago Real Estate | Weekly Market Update Week of Jan 19th 2022

Welcome to your: “Weekly Market Activity Report for the Chicago Community” brought to you by Fast Stats and the Chicago Association of Realtors. This report is for the week ending on February 19, 2022.

For an overview explained by yours truly read on. Also thank you for visiting this article. High Fives! The short answers are underlined or Italicized (depending on what device you are on) and if you want to nerd out with me you can read my thoughts after that. For any further explanations or if you would like to talk with me and interview me if you are looking for a real estate agent in Chicago, we can set up a time to talk together and see if we are a good fit to reach your real estate goals. Blessings.

Detached Single-Family

Healthy Market Time Range: ~ 52 days(avg) ~61 Days(month of Jan 22′). The insight from this is if you are a seller and you are going beyond this time range it means one of two things. One you are either an outlier (ie. a distressed or priceless property) or, two you are, respectfully, overpriced. To sell you may need to challenge what you believe the market should be with the reality of where it is. If your property was worth what the list price says it is, Why hasn’t it sold then. I can pull all the comps in the world and nothing can comp a property that is overpriced. You will do really well in market time though.

Under Contract: 247 properties (week ending in 2/19/2022) compared to last week we had 215 properties under contract. This shows in the last 7 days more buyers have said yes. Another way to say it is demand has increased. Contrast this with the inventory.

Inventory of Homes for Sale: 1,772 (New Listings during the week of 2/19/2022: 321 properties) What does this mean? This shows that the supply in the Chicago Market is 1,772 and the demand is 247. Meaning if we take 1,772 divide that by 247 we get ~ 7. The insight to take from this is that a buyer in Chicago right now has the opportunity to “look around” as it were at properties for sale with some breathing room.

Percentage of Original List Price Received: ~ 96.6% What does this mean? My clients ask me: Matt what do you think is a good deal? or How much do you think we the seller is willing to “negotiate”? Good question. Let us not guess. Let us look at the data. Based on the last week of data of the properties that sold. Those sold properties sold 96.6% of the original list price. Meaning and here is an example. Let’s say the property you like is listed at $400,000. We take $400,000 (multiply by) 96.6% ~ 386,400 (about). That is the number that is negotiated right now in the Chicago market in the last week. There are many ways to look at this. I’ve said it before, I’ll say it again: “Properly Priced Property Sells”. Look knowing the market is trading and doing deals at 96.6% of list price means that the market is about 4% overpriced; the sellers know it, the buyers know it. You are not getting a “discount” you are getting to pay 100% of 96.6% of what the market is worth. The idea that you are getting a deal is relative. The market bears what the property is worth. How do we know it is worth the correct amount, we look at comps, we look at median sales price (which I did not include in my summary and yet it is in the report because median sales price depends on other factors which we would need to find out together) resuming, we look at the comps, we look at the median sales price and other factors.

Now let’s look at condos, townhouses, duplexes, etc.

Attached Single-Family

Healthy Market Time Range:~81 days(avg)~108 Days(month of Jan 22′) Meaning if you go beyond 108 days your property is respectfully overpriced. The trading value of Attached Single Family properties in Jan 2022 is at 96% so if your listing is beyond that. The market will let you know by not seeing your property. The buying market is not afraid to hurt your feelings. The greatest feedback for a seller is the answer to the question, “Did we get any offers?” If you have an offer? Great the market said yes to you, you have found the correct price to trade your property. If you have no offers; please understand that is your feedback. Silence and no call back are also feedback. The market saw your listing, said: “Nice property, out of my budget.” Also known as overpriced. Also known as denial. Also known as increased market time. Also known as we aren’t coming back here again. If you get what I’m saying. Also as I’ve said before the insight from this is if you are a seller and you are going beyond this time range it means one of two things. One you are either an outlier (ie. a distressed or luxury priceless property) or, two you are, respectfully, overpriced. The move is to be within the price range where you trade ~(about) 96% of the original list price. “Properly Priced Property Sells”.

Under Contract: 485 properties (week ending in 2/19/2022) Compared to last week we had 444 properties under contract. This shows in the last 7 days more buyers have said yes. Another way to say it is demand has increased. Contrast this with the inventory.

Inventory of Homes for Sale: 3,862 (New Listings during the week of 2/19/2022: 805 properties) I am not even gonna get into this too much. You already see it. Supply is 3,862 properties. Demand is 485. This metric is at a weekly scale. Come on man. That means: Supply divided by Demand ~. 3,862/485~7.9 Meaning a buyer looking for a condo has 7ish properties to pick from for each buyer. The only exception I will say to this is that this is the whole city of Chicago. The narratives I am talking about here are the whole city; therefore, yes it may be different if we zoom in to a certain area; of course. For sake of the conversation we are having here, this is how the city of Chicago is doing as a whole.

Percentage of Original List Price Received: ~ 96.0% Properties are trading at this %. This is the amount that is being negotiated. 4%. Couple of ways you can look at this. The market is overpriced by 4%. 4% is being negotiated. For clarification and for practice let’s do an example. Let us say your listing you are selling or the property you are buying is listed at $500,000. Okay. Take $500,000 multiply it by 96% and that will provide an estimate. (Matthew takes out the calculator to calculate) the answer is. $500,000 x 96% ~ 480,000.

Blessings & High Fives!

There you have it. Thank you for listening to my summary. Below is the report I look at to see where the market is; take a look and see if you agree. Stay tuned for more weekly and monthly content. If you are interested click on my linktree below to follow me on socials and check out my blog for more and different topics. I hope this was helpful to you. May your day be a blessed one. High Fives!

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