Here’s a look at the latest data from the Chicagoland area market.
As interest rates continue to climb, we’ve been getting a lot of questions from clients. Are these mortgage rates going to crash the real estate market in Chicago? Should buyers wait a little longer before purchasing in case prices decrease? The best way to gain some clarity on what’s going on in the market is to look at the aggregated data pulled from the MLS. Today I’ll share what I’ve found.
In the area from Edgewater down to the South Loop, single-family home sales rose by 9.2% even though interest rates have gone up so much. The median time on the market for this same class of homes is way down, having dropped by 57.4% since April of last year.
So why is this happening even though rates are going up and affordability is declining? It’s because inventory is still very low. Single-family homes are being gobbled up right and left.
We currently only have around 2.3 months of supply in the Chicagoland area, so if no new listings hit the market, we’d sell out of what we have in 2.3 months.
“Most likely, prices will remain the same, and inventory will continue to stay low.”
In terms of condos, prices are quite flat in the Chicagoland area. Their market times are down 7.5%, which is to be expected—condo inventory is down 45%. Contracts are up by 10%, and closed sales are up by almost 30% over last year.
I don’t have a crystal ball to tell me what the future will bring, but we think the market may slow down a little. Most likely, prices will remain the same, and inventory will continue to stay low.
If you’re looking to buy or sell real estate, or if you have any questions, don’t hesitate to give us a call or send us an email. We’d love to help you.