The most fundamental concept in economics is supply and demand.  The more demand there is for a good or service, the lesser the supply will be, which results in a higher price.  If there is no demand, the price will fall until an equilibrium is restored for that good or service.  That basic lesson of Econ 101 is being taught across the Chicago real estate market, to the delight of those looking to sell at a higher price.

In an article in The Chicago Tribune by Mary Ellen Podmolik, "Better Chicago Housing Market Getting Sellers off the Fence," it was stated that the supply of homes for sales in the area were down by half.  As noted by Podmolik in a very instructive piece that should be read by all looking to buy or sell real estate in the Chicago area, "Forty percent fewer homes were available for sale in the nine-county Chicago area in April a year ago, leading to higher sales prices.  That in turn, is prompting more homeowners to slap fresh paint on their walls and list their homes for sale."

Chicago recently joined the list of the most improving housing markets, as compiled by the National Association of Home Builders.  That membership for Chicago in the highly coveted list was based on better housing sales and prices with greater job opportunities in the area.

Information from the Illinois Association Realtors certainly supports Podmolik's Tribune article, and why Chicago was recognized by the National Association of Home Builders.

Sales of previously owned homes in the Chicago area were up 31 percent in April.  The media price of $173,000 was higher by 8.1 percent from April of 2012.  In the city of Chicago, sales rose by 28 percent for April.  The media price in the city jumped by 22 percent from April 2012.  As a result of more active buyers, the time on market has fallen from an average of 101 days in April 2012 to just 77 now.

The revitalization of Chicago has certainly been documented in the media.  In just the last two weeks, the city has been the focus of the cover story for Time magazine and the New York Times magazine.  In a lengthy piece in the Financial Times by Edward Luce the weekend of June 9, Chicago and other urban areas were the subject of, "Rebirth of the American City."  Positive press such as that about Chicago can only be favorable for home sales in the area.

There are many signs that the bullish market for Chicago real estate investing should continue.  

An article in USA Today detailed why Chicago is one of the most popular cities for recent college graduates.  For that key demographic, Chicago is the city growing second the most in popularity.  As detailed in anothe article on this site, Chicago is very popular with foreign investors, too.  With so many heading to Chicago for the jobs, social activities, and cultural offerings, the real estate in the area was bound to increase in price.

About this, Roger Fox, a sales agent in the Chicago area lamented that, "There's definitely an inventory shortage.  It's a supply and demand issue."