Chicago: State of the Real Estate Market

Spring market is finally here, and it is shaping up to be a more balanced market compared to the last 2 years. With more inventory coming on market due to buyers back out from high interest rates, we are likely to see a softer market where the average American isn’t completely priced out.

According to Redfin, Chicago home prices were down 6.6% in November 2022 compared to the previous year, with homes sitting for 71 days vs. 31 days last year. That is a huge indicator of the change in the market and the power finally starting to shift to buyers.

The one thing holding back a lot of sellers still is that they would be selling their home with a 3-4% mortgage rate, only to buy a home with a 6-7% rate, which increases their cost of living for the same home. So, most of these folks are waiting it out for as long as they until they really have to move.

It’s been a cooky ride since the beginning of COVID in the housing market, but there appears to be light at the end of the tunnel and hopefully a return to normalcy within 12-24 months. Time will only tell, but supply and demand appear to be settling down, which is good for your average Joe and the overall health of the economy and society at large.