Chicago, IL Real Estate Market

This chart shows you the trend of average home values in Chicago, IL. The average estimated value of a home in Chicago, IL was $281,222 in November 2008, down 0.13% from October 2008. Homeowners can use average estimated value to gauge the current equity in their home or to determine a potential sales price. Average estimated value can help indicate if purchasing a home in this area will yield a positive return.

This chart displays the trend of average sales price in Chicago, IL. The average sales price of a house in Chicago, IL was $303,018 in November 2008, down 0.15% from October 2008. Homeowners can use average sales price to help them determine a price point for their home. Conversely, home buyers can use average sales price to estimate the price they could expect to pay. Higher average sales prices may indicate better than average homes, while lower average sales prices may indicate homes in less demand (discounting special circumstances such as foreclosures).

The total number of sales is an indicator of turnover in the Chicago, IL market. Home sales in Chicago, IL for November 2008 totaled 618, which is down 64% compared to the transactions recorded in October 2008. Total number of sales can help homeowners gauge when to sell a home. Sales volume can occur during a time of prosperity or hardship. Therefore it is important to compare the sales price to the home value to determine if there is growth or contraction in the market. Home buyers can use the same information to identify areas where sales are occurring. Because home prices lag sales volume, prices typically increase as more sales occur.

Neighborhood density represents the number of homes that are inhabited, while household size tells you how many people on average live in each inhabited house. These metrics can be an indicator of how well Chicago, IL maintains its housing inventory. The population of Chicago, IL is made up of 1,038,104 households with 2.70 adults per household. On average, the median age of a home in Chicago, IL is 54 years. Comparing neighborhood density to the number of properties, vacancies, and the number of new homes or neighborhoods can help to assess growth in a particular area.

The number of sold homes is a count of sales from the last few months (varies per location). Looking at the number of homes and the average time homes are on the market (for sale) in Chicago, IL can indicate how long homeowners are willing to wait to sell their homes. It took an average of 130 days for homes in Chicago, IL to go from a listing to a ratified contract. Conversely, average and maximum days on market will help sellers set an expectation for how long it may take to sell a house. Note that many variables influence the number of days a house in on the market before it sells

The total inventory of available homes in the Chicago, IL market in November, 2008 stood at 28,017 homes. Foreclosures made up the majority of the homes for sale. This accounted for 16684 real estate properties or 59% of the Chicago, IL real estate market. The rest of the market comprised of resale homes and new homes totaling 11329 and 11329 houses respectively. These numbers do not represent all homes, as not all homes are marketed the same. The number of existing or resale homes is those found in most MLS's. New homes are a good indicator of housing growth, while foreclosures can indicate problem areas. Given recent events, foreclosures can also be good purchase opportunities given their reduced cost.

The occupancy chart shows the ratio of rentals to homes for sale in Chicago, IL. There are 38% of homeowners and 50% of renters in Chicago, IL. Home vacancy accounts for 11% of the Chicago, IL real estate market. In addition, the vacancy rate of homes helps home buyers determine if a housing market has weak or strong competition. It also highlights areas of investment opportunities.

House appreciation provides three indicators of the home value trend in Chicago, IL. The appreciation rate signifies whether the market has increased or decreased in value. Median value is the worth of a typical home in the area while average monthly rent can be used a proxy to compare with your monthly investment. The average market value for a home in Chicago, IL for in November, 2008 was $277,194.

Caveat: There are many factors that determine both the price and value of a home. AOL Real Estate cannot and does not guarantee that the trend will retain its current course. We recommend viewing the other charts to get as many perspectives on this area as possible.