Chicago real estate, living and neighborhood perspective

November statistics

The year over year statistics for November has been published. One common trend occurring in several market segments, including all residential and commercial properties are the lowered months supply of inventory, which all seem to be hovering over the four month mark. What the months supply of inventory (MSI) tells us is at the current rate of sales, how fast will it take for the remaining inventory to be sold off.

With residential properties all around a four month supply, the inventory could almost all be gone by spring, especially as fewer new properties are coming to the market during the winter/holiday season. Homeowners looking to purchase now are fighting over a smaller number of available properties which is helping to stabilize the market in many areas. This could potentially lead to pent up demand for spring in high demand areas.

Additional factors such as low interest rates, rental rate increases and a lower number of distressed properties coming to market are helping to further stabilize these areas. Traditionally, a four month supply of inventory would be translated into a “sellers market,” but opposing factors such as unemployment/financial concerns, credit availability and market confidence is still largely affecting the market overall to minimize potential gains.

Investors will still play a significant part of the market, especially cash purchasers who are not limited by financing and look to take advantage of increasing rental rates.


Sherwin L. Sucaldito, REALTOR®, GREEN, ABR, CRPM
@properties
The Institute of Luxury Home Marketing
Green REsource Council, GREEN
Accredited Buyer’s Representative , ABR
Certified Residential Property Manager, CRPM
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