What impact (if any) have rising interest rates had on the market?
Mortgage interest rates are rising, which has many buyers and sellers worried about their real estate plans. Today I’ll go over the latest data to explain how rising rates are impacting the Chicagoland market.
The median price for single-family homes has risen 8.9% since last year. Homes are also selling faster than in 2021; the median market time for homes dropped by 56.8% to just 19 days year over year. Closed sales increased by 11.1%. That’s all driven by our inventory levels, which fell 54% since last year.
For condos, the median sales price remains relatively flat, only dropping by 1.2% since last year. The median market time for condos dropped 10.3% year over year. Like the single-family market, condo sales increased by 18%, and inventory fell by 47%.
“With our lack of inventory, our market will likely remain stable or continue to slowly rise.”
Rising interest rates haven’t yet impacted the market. Though news about rate hikes does make people nervous, you need to look at it from a historical perspective. At 1:47 in the video above, you’ll see a graph that shows the average mortgage rate for each of the five previous decades. Comparatively, our rate is still low—just not as low as they were last year.
People are also scared about the prospect of a recession. At 2:17 in the video, you’ll see a chart that shows how in four of the last six recessions we’ve experienced, home prices actually increased. With our lack of inventory, our market will likely remain stable or continue to slowly rise.
If you’re looking to buy or sell, or if you have any questions about what’s happening in today’s market, give me a call or send me an email. I’d love to help you.
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