Market inventory levels are approaching the lows we saw back in 2005, which tells us that, in certain parts of the city at least, the housing market in Chicago is experiencing a significant recovery. What is market inventory? First we look at all the properties currently for sale in a given neighborhood, and then we calculate how many months it would take to sell off that inventory at current levels. Two years ago, in downtown Chicago, that number was around 35 months. Now, in the same area (downtown city neighborhoods close to the Loop,) the monthly supply of inventory is approaching one month.
We’re seeing this here at The Apostal Group. For the last two months, the number of pending sales in our offices has exceeded the number of new listings. This is the first time in five years that this has happened. Although there is still some softness in certain areas of the city, it appears that the market in the downtown direct center has already hit bottom and the buyers are coming back to take advantage of it. As long as current economic conditions continue the way they are, this trend should see an appreciation in prices as early as next year.
Because our inventory of listings is low for the first time in years, we have begun calling clients who couldn’t sell in the past to see if they are ready to try again. We’re very, very encouraged by the numbers we’re seeing. Are you in this situation? Contact us! We’d love to talk about the market further with you and evaluate if now might be the perfect time to sell your property.