Are We in a Housing Bubble? Escalating home prices have both buyers & sellers worried that the market is just “too good to be true,” and agents across the U.S. are getting bombarded with the ultimate question: “Are we in a housing bubble?”.
Illinois home sales and median prices remained positive for the eighth straight month while available housing inventory dropped again, according to data released by Illinois REALTORS®.
Statewide home sales (including single-family homes and condominiums) in February 2021 totaled 9,934 homes sold, up 11.9% from 8,880 in February 2020.
The statewide median price in February was $226,983, up 14.1% from $198,900 in February 2020. The median is a typical market price where half the homes sold for more and half sold for less.
Buyer demand remains strong and with available inventory low statewide, it is a great time for sellers to list and sell their homes!
It took an average of 53 days to sell a home in February, down from 67 days a year ago. Homes for sale totaled 24,358, a 49.9% decline from February 2020 when there were 48,636 homes on the market.
The monthly average commitment rate for a 30-year, fixed-rate mortgage was 2.81% in February 2021, an increase from 2.74% the previous month, according to the Federal Home Loan Mortgage Corp. In February 2020, it averaged 3.47%.
Last month, 7,052 homes (single-family and condominiums) were sold in the nine-county Chicago Metro Area, a 14.7% increase from the 6,150 homes sold in February 2020.
The median home sale price in February 2021 was $270,000 in the Chicago Metro Area, an increase of 12.5% from $240,000 in February 2020.
“While February’s bitter weather dampened that month’s housing sales compared to January, sales were up almost 15 percent from a year ago in Chicago and 12 percent in Illinois,” said Geoffrey J.D. Hewings, emeritus director of the Regional Economics Applications Laboratory at the University of Illinois. “Price appreciation also continued with median prices up over 12% from a year ago in Chicago and 14% in Illinois. Further, these positive trends in sales and prices are expected to continue for March, April and May.”
Sales and price information are generated by Multiple Listing Service closed sales reported by 23 participating Illinois REALTOR® local boards and associations including Midwest Real Estate Data LLC data as of March 7, 2021 for the period Feb. 1 through Feb. 28, 2021. The Chicago Metro Area, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will. Information from Illinois REALTORS®.
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