The past two years have been interesting for real estate in the Chicago metro. There is a lot to cover so we are doing a 5-part post. We will publish these reports on a weekly basis. If you wish to receive the full report right away, please reach out to a Soloma team member or click here if you have not been in contact with a team member. This is not meant to be investment advice; this is our interpretation of what has happened in the Chicago real estate market based on data and our team’s experience.
What Do These Trends Mean For You?
Many unpreceded events have happened since the start of 2020. These events have significantly changed the way we look at things from an economic perspective. For example, national used car prices have increased, national home values increased 10.4% at year end 2020 and 19.8% at 2021 compared to only 3.7% in 2019 according to the Case-Shiller Home Price Index. On top of all this labor, building material and other commodity costs continue to rise putting upward pressure on new home pricing.
We gladly work with both renters and buyers, but if you are considering continuing to rent, imagine getting a 7 to 10% rent increase on your renewal and a year later paying 10%+ more for the same home you looked at a year prior. If you are a seller, well you have captured this appreciation but if you are thinking of upsizing into a bigger home, that gap will continue to grow in dollar terms.
Below are some insights as to what the experts believe may happen.
Outlook
Here are what some experts are saying may happen in the near future on a national level. On a more local level, we believe some neighborhoods in the city and certain suburbs may have a greater move in value, while some a less pronounced move in value.
Conclusion
We generally believe that home prices will continue to trend upwards largely due to demand created from low rates, Fed stimulus and limited supply.
We expect the high-rise condo market to make a comeback in 2022 as prices have hit their lows in 2020 and reversed course in 2021 and continue to climb in 2022.
We expect Chicago suburbs to continue to be strong markets.
We've published these reports in a multi-blog post form. If you wish to have one PDF report, click here.
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