A new report from the experts at Metrostudy confirm that the road to recovery is still on track, as Chicago real estate has enjoyed another strong quarter of growth in the third quarter of 2013. While the numbers speak strongly toward recovery, it is a slow and steady process rather than instant spikes of activity.
All told, Metrostudy shows that there were 1,649 units of Chicago new homes started in the third quarter of 2013, which is an increase of 55.9 percent over second quarter 2013. In addition, the number of homes sold in the third quarter of 2013 was up some 25.9 percent over second quarter 2013. As both of these are key indicators of economic recovery and improved health of real estate in Chicago, these numbers point toward a stronger pulse.
Even better, the supply of finished and vacant inventory fell to three months for single-family detached and attached homes in the third quarter. These are the lowest levels of new home inventories in over six years in the Chicago market; and these levels continue to fuel the desire for more new starts. These low levels of vacant resale homes will continue to drive up demand for new homes, and new starts are working to satisfy that demand.
Still, the supply of lots available for new starts is at its lowest level since 2009, which will prove a limiting factor to the number of new starts as the recovery continues. Of course, the number of these lots is one concern – another is the prime real estate maxim of “location, location, location.”
In their report, Metrostudy suggests that 5,000 to 5,500 new starts is an attainable goal for 2013, a number that has been predicted as a hope before. Do you think this new data is enough to move that number from a hope to a real goal for 2014? Let us know in the comments!