31-Mar-16 – With existing home prices sharply on the rise, owners seeking to move up to bigger quarters or downsize to smaller digs better spruce up their properties now and get ready for a quick spring sale, Chicago-area Realtors advise.

“Now is the time to sell your home if you’ve been thinking about doing that,” said Dan Wagner (right), president of Chicago Association of Realtors. “Compared to last year, the median sales price for all closed sales is up about 12 percent and there is a faster turnaround time between when a home is listed and when it sells.”

The median price of a home in Chicago in February jumped 12.3 percent to $238,000 compared with February 2015, reported Illinois Association of Realtors (IAR). Unit sales in Chicago increased 2.1 percent in February with 1,528 homes sold, up from 1,497 closings in February 2015.

Experts say mortgage interest rates below four percent are having a positive impact on the resale housing market in the Chicago area. Benchmark 30-year fixed home loan rates averaged 3.71 percent in late March, compared with 3.69 percent a year ago.

The Federal Reserve’s decision to maintain the current level of the federal funds rate pushed the 10-year Treasury yield lower, said Sean Becketti, chief economist of Freddie Mac. As a result, the average 30-year fixed mortgage rate declined to 3.71 percent. “However, a June rate hike is still on the table,” Becketti (left) said.

In the nine-county Chicago metro area, single family home and condominium sales in February totaled 6,095 units, up 6.1 percent from February 2015. The median price was $187,500 in February in the Chicago metro area, up 7.1 percent from a year ago.

“Chicago’s metro housing market has been moving ahead at a steady pace,” said Jack Kreider (right), executive vice president and regional director of RE/MAX Northern Illinois. “Right now there is just a four-month supply of townhome and condominium units in the metro area, compared to a six-month supply of detached single-family homes.”

The relative shortage of attached homes is felt most strongly in Chicago, where attached units accounted for 56 percent of February sales, Kreider said.

A RE/MAX analysis of February home sales in the Chicago area is based on data collected by MRED, the regional multiple listing service covering Cook, DuPage, Kane, Kendall, Lake, McHenry, and Will counties.

Sales of detached homes in the metro area rose seven percent in February from their year-earlier level, totaling 3,862 units. The median sales price gained ten percent to $204,950.

Attached sales in the Chicago metro area climbed seven percent in February to 2,165 units. The median sales price advanced six percent to $165,000.

“Illinois continues to see sustained growth in home sales and median prices, indicating the market is poised for a strong rollout for the spring selling season,” said IAR president Mike Drews (left). “All signs point to sellers seeing intense interest from buyers who are competing in a market where there are fewer properties from which to choose.”

“The housing market in Illinois continues to record comfortable increases in both sales and prices,” said Geoffrey J.D. Hewings (right), an economist at University of Illinois. “Particularly important has been the consistent decrease in the percentage of sales accounted for by foreclosed properties in Chicago.”