Chicagoland’s large, and incredibly diverse housing market is constantly evolving. We, of all people, know how difficult it is to stay ahead of the ever-changing trends. The good news? We can help! Each month, we give our readers market updates with the most up-to-date information on how the Chicagoland area is doing. Want to know how Chicagoland fared over the past month? Then just keep on reading.
With this market update we close out 2021—a year absolutely full of frenzied market activity. Did the Chicago area end on a high note?
Since the strong market activity of summer 2021, the Chicagoland market has seen a steady decline in some areas, but more recently, has seen some positive trends coming back. Despite the normal chill that winter brings to the real estate market, we have seen positive trends in the amount of closed sales and average sales price compared to November 2021.
New Listings Continue to Shrink, While Closed Sales Still Grow
The number of new listings for December 2021 clearly shows just how tight the market has gotten. Chicagoland had 4,368 new listings in December compared to 6,664 new listings in November. This represents a decrease of 34.4% in the number of new listings between November 2021 and December 2021.
However, the number of closed sales has actually shown improvement compared to November 2021—which had a downward trend itself compared to October 2021. In December 2021, there were 6,738 closed listings, compared to the 6,550 closed listings of November 2021. This is a very small increase, only 2.9%, but it could show where the market is heading in terms of closed sales for 2022. We could see this number increase as the market and competition tighten amongst buyers.
Average Sales Prices Improve, While Market Time Increases Slightly
In 2021, we saw the average sales price increase greatly in terms of year-over-year comparison, and stay steadily high throughout the year. More recently, we have seen the average sales price fall slightly, likely due to the market cooling after the hot activity of summer, but as of the past few months, we have actually seen this figure steadily climb back up.
In December 2021, the average sales price in the Chicagoland area was $401,376, while in November 2021 it was $393,434. This is an increase of $7,942, or an increase of 2.0%. Earlier in 2021, we saw the average sales price fall below $400,000 in September, when it went down to $395,855, but now we are seeing it climb back over the $400k threshold in December 2021. This indicates strong market activity, likely driven by the market shrinking for buyers, and driving average sales prices up.
The average market time in December 2021 was 47 days, compared to 42 days in November. This is an increase of just five days. We have seen this figure increase by five or four days each month since summer ended, but these figures are still much better than their 2020 counterparts. For example, December 2020 had an average market time of 64 days, compared to December 2021’s 47 days.
Overall…
What a year! 2021 has been a flurry of market activity compared to the COVID-19 impacted market of 2020. To close out the year, we have some tips for buyers and sellers for what they should expect out of 2022.
Buyers should really consider moving fast when it comes to their plans. Interest rates are currently rising and are expected to go above 4%. Buyers who act fast can lock in lower interest rates and save big in the long run.
For sellers, we predict that 2022 will be another great year for you. Demand is still very high amongst buyers, which has only fueled buyer competition and has driven up the prices of homes because of the market shrinking.
So there you have it! We’re proud to close 2021 on a high note and are greatly looking forward to seeing what 2022 brings. As always, we’ll be here to give you all the current data on the Chicagoland market. Check back next month for January’s market update!
Just a quick note for readers: our Market Updates are based on the results at the rear of a month and therefore, we receive our data on the 14th of the next month. So, that means January’s Market Update will be released in mid-February.
But, if you just can’t wait until next month to learn more, I am always available to answer any questions that you may have about the Chicagoland market. Looking to buy? Or sell? Maybe you’re just trying to plan ahead? Regardless of your specific situation, I will always be here to answer questions, provide information, and give guidance when it comes to your real estate investments. Schedule an appointment with me today! I am available for phone, video, and in-person meetings.
If you want to contact me directly, my phone number is: 630.460.7953.
About Gerardo Zavala, Realtor
There is a true passion for connecting people with real estate that makes me fall in love with my career over and over again. While my title says, REALTOR® I think I am much more than that. For example, I am present and actively listening to my client’s needs, on the spot when things are urgent, and by your side to say “congratulations.” Most of my clients will say that I am a connection away from support no matter the situation, day, or time. In my opinion, customer service, educating the client on progress and next steps, and overall satisfaction are my top priorities. How can I help you?
