Spring has sprung in Chicago, and we are all anticipating an uptick in real estate transactions. However, the traditional seasonal surge has been tempered a bit by the ongoing inventory shortage and persistently higher interest rates.
So far, it’s clear that this spring’s market activity will heat or cool in direct response to the fluctuations in interest rates.
As far as home prices go, data reveals that home prices in Chicago and surrounding suburbs are robust and continue to rise, although they are making slower gains than in recent years.
Severe low inventory results in intensified competition for available properties. It’s still a solid seller’s market, but buyers do seem to be more hesitant and price-conscious compared to the past two years.
The National Association of REALTORS® reports an average listing duration of approximately 50.5 days for Chicago homes. Yet, this figure varies significantly across different neighborhoods, with Near North properties averaging 108 days on the market versus North Center’s brisk 15 days.
Homes that are well-maintained, situated in sought-after locations, and priced competitively are selling swiftly, often above the asking price. But we are seeing others sit on the market for longer than we’ve been used to in recent years.
For prospective buyers, the message is clear: securing pre-approval and adopting a proactive stance towards making offers are crucial in this market. Also, it’s even more important to ensure that financing is secure and adequate to cover fluctuations in interest rates so that the deal doesn’t fall through at the closing table!