Marc J. Blumenthal now offers video conferencing for initial estate-planning meetings. Click here to schedule


I’m ready to get started

Chicago Sees Record Number of Real Estate Closings

Chicago Sees Record Number of Real Estate Closings

Signning a home sale contract, house key chain

The Chicago Real estate market managed a powerful start in 2021, with January recording the highest number of closings in 14 years. January 2021 reported a 17.1 percent higher closing than January last year, as the market strives to compensate for lost home sales during the early months of the pandemic.

A huge chunk of the increase in sales came from condos that have been falling behind until January 2021. Condo sales increased by 21.4 percent while sales of single-family homes rose by 6.0 percent. Shortage of single-family homes could be putting the sale of these homes on hold. What’s more, condos are still popular among some buyers.

An Overview of Chicago Real Estate market

Increase in Chicago Home Contracts

A substantial surge in home purchase contracts is a clear indication of an increase in closings. Chicago has reported 8 consecutive months of a substantial increase in home purchase contracts. In January 2021, for instance, contracts were 15.8 percent higher than the same month last year, meaning that closings are likely to increase for the following one or two months.

January set a 13-year record high for Chicago home contract activity. The closing average is currently running higher compared to late 2019 and early 2020.

Pending Home Sales

The Chicago real estate market has also seen an increase in the Pending Home Sales Index (PHSI). The number of homes awaiting closure recorded a 4-year high towards the end of January. Pending home sales increased by 462 units compared to last year. That increase will impact this year’s closing. Apart from leading to more current closings, the new contracts are also adding more future closings to the pipeline.

Distressed Home Sales

Thanks to the foreclosure moratorium in force, the percentage of distressed home sales has continued to drop. It was 9.1 percent in 2020, but this year, it’s just 3.2 percent.

Investing in Chicago Real Estate Market

Chicago’s housing units are occupied by both owners and renters. The most common housing units in this city are one and two-bedroom huge apartment complexes. Other common kinds of housing include rowhouses, single-family detached homes, and duplexes.

In the past decade, Chicago’s real estate market has recorded a 4.40 percent appreciation rate. Buying a rental property in this third-most-populous city in the nation could, therefore, be a worthwhile investment.

    Get Help Today!

    Simply fill out the our online form, and one of our attorneys or staff members will contact you to schedule your appointment.

    We value your privacy. Your information will not be shared without your permission.

    The use of the internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

    I have read and understand the disclaimer

    Memberships & Associations

    • logo
    • logo
    • logo
    • logo
    • logo
    • logo