LISLE – Chicagoland's multiple listing service has reported that the October 2012 supply of inventory was down to 4.3 months, while the number of properties under contract had skyrocketed to 10,364.
The supply-of-inventory figure is the lowest in the past five years, and the monthly under contract numbers are the highest ever, outside of April 2010 when impacted by the Homebuyer Tax Credit.
The supply of inventory indicates how much time in months it would take, at the current rate of houses going under contract, to sell the residential inventory in Midwest Real Estate Data MLS database.
In October 2011, the MRED supply of inventory was 12 months and the number of properties under contract was 5,818. In October 2010 those numbers were 16.6 months and 4,852, respectively. The number of properties under contract is double that of last year, and up 20 percent from the year before that.
"The October (supply of inventory) number is a clear indicator that there is pressure on prices to rise," said MRED CEO Russ Bergeron. "It is a simple matter of Economics 101 – less supply, more demand and prices move up. This helps explain why the median sold price is up nearly 3 percent year-over-year. The number of properties under contract confirms what we have been observing – that the real estate marketplace is slowly returning to some form of normalcy. All else remaining equal, I look forward to terrific numbers in 2013."