High residential home prices here to stay
In March 2024, detached home prices in the Chicago suburbs were up 9.3% from the same time the previous year, continuing their steady climb upward with no signs of slowing down.
Median sales prices for detached homes were $338,450 in March 2023, and rose to $370,000 last month.
“People are getting used to the idea that rates are going to be stagnant, and yes, they might slowly decrease over time, but potential buyers are thinking, ‘the longer I wait, the more expensive the house is going to get,’” said Tim Ryan, president for the Mainstreet Board of Directors.
While the overall number of detached homes sold last month was below March of 2023, likely due to low inventory, time on market was also down. Last month, 2,118 detached homes sold, a decrease of 13.8% from the same time last year. Average time on market went from 63 days last year to just 49 days this year.
“The little inventory that’s out there is moving quickly because there are still buyers looking to make a move,” said Mainstreet CEO John Gormley. “People don’t need to go it alone. A Mainstreet Realtor can support in structuring successful offers, negotiating the sale, navigating the inspection process and so much more.”
In their latest homebuyers and Sellers Generational Trends report, which examines the similarities and differences among recent homebuyers and sellers across generations, the National Association of Realtors found that millennials reclaimed their position as the largest group of homebuyers. Last year, they were surpassed by baby boomers, but the latest report indicates they now make up 38% of the home buying market, a substantial increase from 28% last year.
“This gives me a lot of hope for the future. Younger generations are still aspiring to homeownership,” said Gormley.
“I agree,” added Ryan, “I think people have been sitting on the fence for long enough, and they’re ready to move forward, to find the home that’s right for them and their families and to start building equity.”
Last month, for attached homes, sales were down 7.3%, from 1,172 in March 2023 to 1,087 last month. Average time on market was down to 31 days, 10 days lower than last March. Median sale prices of attached homes increased 15.3% from $225,500 in March of last year to $260,000 last month.
The following suburbs saw increases in home prices from March 2023 to March 2024: Antioch (10.5% increase in media sale price); Arlington Heights (21.4%); Aurora (15.2%); Burbank (15.5%); Chicago Heights (14.3%); Des Plaines (8.2%); Downers Grove (31.6%); Glen Ellyn (11.3%); Hoffman Estates (10.2%); La Grange (40.4%); Lisle (38.1%); Maywood (81.2%); Palatine (16.7%); Park City — Waukegan (10.7%); Park Ridge (19.1%); Schaumburg (18.7%); St. Charles (27.4%); Streamwood (10.6%); Tinley Park (17.8%); Westmont (18.5%); and Wheaton (26.0%).