Statistics about how the Chicago housing market fared in March were released from the Illinois Association of Realtors last week – and the news looks promising. Overall, there were 1,450 home sales in the city of Chicago, which is up 37.3% from February. The price for single-family homes and condos also increased in March to $191,000 (a 7.6% improvement from February).
Chicago condo prices recorded a year-over-year monthly gain in March – something we haven’t seen since October of 2008. The median price for a condo was $275,000 in March. That is 2.8% higher than what it was in March of 2010. Despite a slight uptick in year-over-year price for Chicago condos, the overall median price for attached and detached homes in the city is down 8.6% from last March. Economists quoted in the Chicago Tribune last week note that sales volume appears to be recuperating and the current trends hint at a moderate price rebound
With prices where they are and interest rates for 30-year fixed-rate mortgages still under 5 percent, home affordability is the best it’s been in four decades. The National Association of Realtors started tracking home affordability stats in 1970. Over 40 years later, affordability has never been this good. According to the latest index, the average monthly mortgage payments on a median-priced home in the U.S. are 13% of a typical household income. That means the average American home owner only spends 13 percent of their gross household earnings to pay the mortgage principal and interest each month.
March was certainly a better month than February for the Chicago housing market, but it remains to be seen whether the upward trend will continue into April. Industry analysts are keeping a watchful eye on this month’s activity and what it means for a long-term recovery.
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