January 2024 Week 4

Matthew Litzenberger a third generation Realtor with Coldwell Banker Realty helps buyers and sellers understand Chicago Real Estate Market metrics. Follow along for weekly updates on all things Chicago Real Estate by clicking here.

Introduction

Welcome to week 4 in our 2024 weekly series aimed to help understand current Chicago Real Estate Market Metrics. While there are many metrics to talk about in the world of real estate, today we will look at only four: speed, demand, supply and negotiations. Let’s get started!

Speed | Healthy Market Time Range

Detached ~ 68 Days (Dec 23′)

Attached ~ 68 Days (Dec 23′)

First, market time is a metric that showcases speed. Whether a listing was priced too low, priced properly or priced too high. If a listing surpasses average days on market it is a check engine light that your listing maybe overpriced.

Demand | Under Contract

Detached Single = 167 Properties (Jan 21st – 27th)

Attached Single = 250 Properties (Jan 21st – 27th)

Secondly, under contract helps answer the question, “In our current market, how many buyers are buying?” Showcasing the heartbeat of the real estate market. Last week, Jan 14th – 20th, saw 129 detached single properties go under contract and 202 attached single properties go under contract. Interestingly, demand metrics become more insightful when compared and contrasted with supply/inventory metrics.

Supply | Inventory of Homes for Sale

Detached Single = 1,866 Properties (Jan 21st – 27th)

Attached Single = 2,532 Properties (Jan 21st – 27th)

Next, supply showcases how much inventory is avalible for buyers and how much competition sellers are up against. Additionally, Months of Inventory, Homes For Sale, New Listings and Absorption Rate are also other key metrics in the conversation of supply.

Negotiations | Percentage of Original List Price Received

Detached Single ~ 96.9% (Yearly Avg) & ~ 96.0% (Dec 23′)

Attached Single ~ 98.1% (Yearly Avg) & ~ 96.5% (Dec 23′)

Lastly, Percentage of Original List Price Received to Closed Price is a metric that showcases what the average accepted purchase price is relative to the list price. How much below asking price can an offer go while still getting accepted? How much would one have to offer above ask in order to be an above average purchase price?

The End | Have A Great Day!

Please note all of these metrics are along a spectrum as opposed to a specific number. Below is “The Weekly Market Activity Report” which is a research tool reflecting residential real estate activity within the 77 officially defined Chicago community areas provided by the Chicago Association of Realtors®. It is essential to keep in mind that real estate markets can vary across neighborhoods and property types within a city. In conclusion, economic conditions and external factors can influence market trends. Staying updated on these metrics and trends is crucial for making informed decisions.