Chicago February Home Sales: Diverging Inventory Trends Create Distinct Differences Between Market Segments

CHICAGO, March 17, 2021 – Inventory, or the lack thereof, continues to be the story in Chicago’s housing market, even as February home sales activity delivered relatively strong results.
Combined sales of attached and detached homes totaled 1,636 units, an increase of 11% compared to the same month in 2020. The median sales price climbed 10.3% from the year-earlier level to $320,000, and the time that a home sold in February spent on the market before going under contract shortened by 5 days to 100 days.
The total inventory of homes for sale increased 1.7% to 6,945 units, but there was a striking difference between inventory trends in the attached and detached segments, noted Mary Jo Nathan of the Charese Team at Compass Roscoe Village, who analyzed housing market numbers compiled by Midwest Real Estate Data, the regional multiple listing service. She has specialized in North Side residential real estate since 2000.
“The attached inventory, which includes townhouses and condominium apartments, was up 31% from its year-earlier level to 5,757 units. Thus, it accounted for 82.9% of the entire city inventory,” she explained. “Meanwhile, the inventory of single-family homes (detached homes) was down -51.3% to 1,188 units. That is less than a two-month supply based on the February pace of sales, and March sales typically are 20% to 35% higher than February, so the supply is exceptionally tight.
“As a result, competition for single-family listings can be ferocious, with many homes attracting multiple offers and selling even before they are officially listed.”
February sales of detached homes in Chicago totaled 601 units, a minimal increase of 0.2% compared to the same month in 2020. The median sales price, fueled by the shortage of homes and low mortgage interest rates, bounded up 16.25% to $279,000, the highest February median price ever reported for Chicago.
Average market time fell to 89 days, the lowest number for February since 2006 at the peak of the turn-of-the-century housing boom.
Sales of attached homes benefitted from a combination of strong demand and more adequate inventory, rising 18.4% in February to 1,035 units, while the median sales price gained 5.4% to $342,500, also a record high for February.
“At first glance, the inventory of attached homes looks ample,” said Ms. Nathan, “but it varies significantly by type. High-rise buildings tend to have considerable inventory, while the supply of low-rise condos and townhouses is more limited, and they often sell quickly with multiple offers.”
The trends seen in the city were also evident across the seven-county Chicago metro area. Metro sales in February were up 16.1% to 6,959 homes, and the median sales price rose 12.5% to $270,000. Average market time was 81 days.
Detached home sales were up 14% and the median price gained 13.7% to $299,000, while attached sales rose 19.5%, and the median price increased 9% to $219,000. As was the case in the city, the detached-home inventory contracted sharply from the year-earlier figure, shrinking -65.3% to 6,339 homes.

Compass, 2044 W. Roscoe St., Chicago, IL 60618
Mary Jo Nathan
maryjo.nathan@compass.com
773-398-3814

Mary Jo Nathan is affiliated with the Charese Team based in the Compass office at 2044 W. Roscoe St., Chicago. She has specialized in North Side residential real estate since 2000.