The media has been painting a picture of doom and gloom and 15% price declines when it comes to the real estate market, but what's really happening in Chicago? Let's take a closer look at the facts.
Recent trends show that the Chicago real estate market has remained strong and stable, despite the potential challenges faced by the national market. While some areas may have experienced a slowdown in sales and an increase in inventory, many areas have continued to see strong demand and rising prices alongside lower inventory. The table below shows recent trends.
Source: InfoSparks, MRED
Specifically, the average home price for homes with 2,000 to 3,000 SF increased 9.3% yr/yr in January 2022 to $439,327 and continued to increase - although at a slower pace - in January 2023 by 3.6% yr/yr to $455,335. We note that larger homes with 3,001 SF+ increased at a faster pace of 17.2% yr/yr to $850,549 in January 2022 and up 5.3% yr/yr to $874,824 in January 2023. This happened despite rates increasing from 3.55% in January 2022 to 6.12% in January 2023.
Have any questions about what’s going on in the Chicago downtown and suburbs residential real estate market, click here to learn more.
One reason for this resilience is the strong local economy. Chicago is home to many Fortune 500 companies and a thriving start-up scene, which has helped to create jobs and drive demand for housing. Additionally, the city's diverse neighborhoods, world-class cultural institutions, and accessible transportation options make it an attractive place to live for people from all walks of life.
Another factor contributing to the stability of the Chicago real estate market is the relatively low cost of living compared to other major cities. While home prices may have increased in some areas, they remain relatively affordable when compared to cities like San Francisco, New York, and Boston. This has made it possible for many people to enter the housing market and become homeowners, even during a challenging economic period.
So, while the media may be focused on the challenges faced by the national real estate market, the story in Chicago is different. The city's strong economy and diverse neighborhoods are helping to keep the market stable and resilient.
In conclusion, if you're looking to buy or sell real estate in Chicago, don't let the negative headlines scare you. The city's real estate market is strong and stable, and there are many great opportunities available for those who are willing to do their research and make informed decisions.
Have any questions about what’s going on in the Chicago downtown and suburbs residential real estate market, click here to learn more.
Comments