The local housing market has been resilient in the face of the coronavirus and the resulting economic turmoil, as indicated both by housing prices and market activity. In June of this year, 45.4 percent more detached single-family homes went under contract than in the same month last year, according to new MORe data. The median sale price remained steady, at $287,000 in June 2020 compared to $286,900 in June 2019.
Attached housing also showed growth, with 28.9% more homes going under contract this June than last June. The median sale price of attached properties rose 1.7 percent, from $175,000 in June 2019 to $178,000 in June 2020. These numbers suggest that, while the pandemic may have driven many people to seek detached homes where they have more options for socially distancing, the demand for condos and townhomes also remains high.
“Based on this data, we expect to see many of these contracts from May and June convert to finalized sales in July and August,” MORe CEO John Gormley said. “The time it takes for a house to go from contract to closing has remained relatively stable, because our industry was quick to introduce virtual closings and other workarounds to allow business to continue safely during the pandemic.”
Even after the pandemic ends, it is likely that innovations like virtual closings will continue, as buyers and sellers alike have found them to be a streamlined, effective way to do business. In today’s sellers market, however, buyers may need to work a little harder to get to that closing. Help your clients take proactive steps like getting a mortgage pre-approval and researching homes they are interested in ahead of showings to streamline the buying process.
Though the coronavirus is still active in Illinois, real estate transactions are unlikely to slow significantly even if other businesses in the state are partially shut down again.
“Even if Illinois’ coronavirus numbers increase, we understand the virus much better now and have policies in place to protect buyers, sellers and REALTORS®,” Kwilosz said. “We expect to see homes continue to go on the market and sell throughout the summer.”
Suburbs with significant growth in the number of detached homes going under contract include:
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Addison (60.0 percent increase in number of homes under contract)
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Alsip (62.5%)
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Batavia (84.4%)
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Bloomingdale (77.8%)
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Blue Island (60.0%)
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Brookfield (61.5%)
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Carol Stream (83.9%)
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Chicago Heights (138.1%)
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Country Club Hills (94.4%)
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Evergreen Park (61.5%)
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Glendale Heights (84.2%)
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Green Oaks-Libertyville (81.8%)
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Hainesville-Grayslake (117.8%)
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Hinsdale (88.0%)
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Hoffman Estates (76.5%)
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Ingleside (77.8%)
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La Grange (133.3%)
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Lemont (83.3%)
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Lisle (105.3%)
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Mt. Prospect (76.6%)
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Orland Park (68.6%)
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Oswego (62.7%)
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Park Forest (73.1%)
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Tinley Park (63.5%)
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West Chicago (69.2%)
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Westchester (111.5%)
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Wheeling (114.3%)
Based on the market now, buyers should be prepared to make an offer as soon as soon as they see a home they like. As a Mainstreet REALTOR®, you can help your clients navigate the process. Encourage buyers to have all their paperwork in line before touring homes, and to get all the information they can online ahead of time. Work to answer any questions they may have about a property as quickly as possible. And, help them understand what sort of offer will be needed to maximize their chances of getting the home they want.
