A year-over-year comparison of new contracts is an encouraging sign for the Chicagoland real estate market. After bottoming out in mid-April, contract activity in the entire Chicagoland region is on the upswing based on @properties data. In fact, by Memorial Day, sales activity was exceeding 2019 levels.
The data suggests the local housing market is likely to experience more of a v-shaped recovery after activity fell significantly in the early days of Stay At Home. Meanwhile, the nation’s homebuilders are increasingly optimistic. An uptick in mortgage applications and online home-search activity also indicate more buyers have re-entered the market at a time when mortgage interest rates remain near record lows.
While we’re not back to the transaction levels we saw at the start of the 2020 spring market, the general consensus is that housing is expected to make a strong recovery and even be a driver of economic growth. And a steady increase in contract activity in recent weeks signals that recovery is already underway.