Spring Market is Here!

When folks in real estate in Chicago talk about “spring market”, they are referring to the property listing frenzy that commences at the beginning of the year. Typically, pre-COVID, the spring market would begin after Super Bowl Sunday (mid-February). This year, the spring market appears to have already commenced.

This could be a healthy sign that the real estate market is starting to normalize post-COVID, and that we are easing our way back into a market with healthier supply & demand dynamics. The past 2 years in real estate have showcased heightened demand from government stimulus, and record low interest rates. This was coupled with a significant decrease in supply from disruptions in the supply chain for homebuilders, given COVID shutdowns. Both of these factors resulted in a wild ride for real estate, sending prices sky high and homes flying off the shelves.

Now, power is shifting to buyers because of higher interest rates and many sitting on the sideline because affordability has diminished. Real estate agents always say, “Now is a good time to buy” as they are the ones benefitting from the transaction, but this time they may be right.