Chicago's Housing Market to Face 'Tight' Competition This Year
A surge in home sales in December has brought buyers and sellers into a frenzy, with experts warning that the city's already strained housing market may become even more challenging this year. According to Grigory Pekarsky, co-owner of Vesta Preferred Realty, his business has seen a flurry of activity since last winter, with over 70 homes sold in January alone.
The national forecast suggests that home sales will continue to rise, with economists predicting a 4.3% increase in the US housing market this year. However, Chicago is likely to diverge from these trends due to its unique inventory situation and regional demand factors.
Inventory levels remain alarmingly low across the city, with Illinois Realtors reporting nearly 89,000 homes sold last year, yet only about 6,650 listings available for sale in December. This dwindling supply has driven up prices, making it a buyer's market – particularly for those who don't have substantial cash reserves.
First-time buyers face significant hurdles as they compete with all-cash bidders, resulting in increased rent pressures and an unaffordable housing landscape for many individuals and families. Experts say the median home price rose over 5% last year to $375,000, a stark contrast to six years ago when prices were around $265,000.
Pekarsky believes that the shortage of homes will exacerbate affordability issues, as cash buyers continue to dominate transactions. The situation is especially dire for first-time buyers, who often struggle to secure financing at competitive rates due to high demand and limited supply.
Several factors may contribute to a more favorable market in Chicago this year: increased construction projects aimed at boosting housing production, modest price growth predicted by economists, and potential drops in mortgage rates. According to Redfin's chief economist, Daryl Fairweather, lower mortgage rates could free up both available inventory homes for sale and demand.
Illinois Realtors predict another tight year for the market, emphasizing the need for policymakers to implement effective solutions to address housing affordability and production issues. Housing advocacy teams are urging action at the state and local level to boost housing supply and ease constraints on the market.
As prospective buyers navigate this challenging landscape, several key points must be kept in mind:
1. Pre-approval is crucial for securing financing.
2. Considering alternative options like townhomes or duplexes can help stay within budget.
3. Be prepared for a competitive market with higher mortgage rates, and don't rush into the buying process.
Experts stress that while the current housing market may seem daunting, patience and persistence are key to finding an affordable home in Chicago this year.
A surge in home sales in December has brought buyers and sellers into a frenzy, with experts warning that the city's already strained housing market may become even more challenging this year. According to Grigory Pekarsky, co-owner of Vesta Preferred Realty, his business has seen a flurry of activity since last winter, with over 70 homes sold in January alone.
The national forecast suggests that home sales will continue to rise, with economists predicting a 4.3% increase in the US housing market this year. However, Chicago is likely to diverge from these trends due to its unique inventory situation and regional demand factors.
Inventory levels remain alarmingly low across the city, with Illinois Realtors reporting nearly 89,000 homes sold last year, yet only about 6,650 listings available for sale in December. This dwindling supply has driven up prices, making it a buyer's market – particularly for those who don't have substantial cash reserves.
First-time buyers face significant hurdles as they compete with all-cash bidders, resulting in increased rent pressures and an unaffordable housing landscape for many individuals and families. Experts say the median home price rose over 5% last year to $375,000, a stark contrast to six years ago when prices were around $265,000.
Pekarsky believes that the shortage of homes will exacerbate affordability issues, as cash buyers continue to dominate transactions. The situation is especially dire for first-time buyers, who often struggle to secure financing at competitive rates due to high demand and limited supply.
Several factors may contribute to a more favorable market in Chicago this year: increased construction projects aimed at boosting housing production, modest price growth predicted by economists, and potential drops in mortgage rates. According to Redfin's chief economist, Daryl Fairweather, lower mortgage rates could free up both available inventory homes for sale and demand.
Illinois Realtors predict another tight year for the market, emphasizing the need for policymakers to implement effective solutions to address housing affordability and production issues. Housing advocacy teams are urging action at the state and local level to boost housing supply and ease constraints on the market.
As prospective buyers navigate this challenging landscape, several key points must be kept in mind:
1. Pre-approval is crucial for securing financing.
2. Considering alternative options like townhomes or duplexes can help stay within budget.
3. Be prepared for a competitive market with higher mortgage rates, and don't rush into the buying process.
Experts stress that while the current housing market may seem daunting, patience and persistence are key to finding an affordable home in Chicago this year.
I think it's crazy how tough the housing market is gonna be in Chi-town this year 
with like, super low inventory & crazy prices 
. First-time buyers gotta be super patient & persistent if they wanna snag a place that fits their budget 
. The experts say we might see some more construction projects popping up to help boost supply, but it's still gonna be tough out there 
. Can't wait to hear how things shake out this year! 
! like, who even has cash to afford a home anymore? 
first-time buyers are getting crushed by all-cash bidders, it's so not fair 
and the prices are just getting crazy, 5% increase in median price last year and it was like $265k six years ago?!?! what is happening to affordability in this city?!?!
. how are people supposed to find a home when there's basically nothing out there? and those construction projects that are supposedly gonna boost housing production? lol what even is the timeline on that? it's been years since we've seen any real progress.
but like, how long will that take to kick in? and what about all the ppl who can't even get financing at competitive rates due to high demand and limited supply? 
this whole thing is just so frustrating 
. housing advocacy teams need to step up their game ASAP 
. like, ilinois realtors said only 6,650 listings were available for sale in december, that's not even close to enough. and dont even get me started on first-time buyers, they're getting crushed by all-cash bidders 
.
. And if mortgage rates do drop, that could be a total game-changer for buyers! Fingers crossed 
WITH ALL THOSE PEOPLE TRYING TO BUY HOMES AND NOT ENOUGH ON THE MARKET, PRICES ARE JUST GOING TO KEEP RISING AND IT'S GOING TO GET EVEN WORSE FOR FIRST-TIME Buyers. THEY'RE GOING TO BE SQUASHED BY ALL-CASH BIDDERS AND IT'S JUST NOT FAIR. BUT I HEAR THAT SOME NEW CONSTRUCTION PROJECTS ARE COMING IN, WHICH COULD HELP OUT A BIT. FINGERS CROSSED THOUGH! 
. First-time buyers are really getting left behind 
, and the idea that cash buyers are dominating transactions is just not fair 
. I'm all for increased construction projects, but we also need to make sure policymakers are taking action to boost housing production 
, it's like buyers are being priced out of their own homes. i know some ppl are saying its all about supply & demand but honestly, how can that be true when theres barely any homes on the market to begin with? 
, especially when ur trying to start a family or just wanna have some stability in life. and dont even get me started on all cash bidders 
. It feels like the system is just rigged against people who don't have deep pockets or connections. Ugh, I just wanna scream 
. Can't we just get some affordable options around here?! 
The Chicago housing market is getting super competitive 
this year! With prices already sky-high, adding 4.3% more growth by experts seems like a no-brainer... for sellers 
what's crazy is that inventory levels are still super low 
I'm living this! 
it's crazy how prices can jump up so fast 
but at the same time, can we talk about how frustrating it is for first-time buyers 
anyway, i'm keeping my fingers crossed that those construction projects kick in and help increase inventory levels 
like, even with pre-approval, it feels so competitive out there 
! Maybe we'll see some price growth and more homes become available for sale 
.
. We can't keep expecting that market magic to happen just because we want it to 
. We need concrete solutions and not just empty promises 
. and lower mortgage rates could also help free up some of the available inventory homes on the market 
. it's not just about first-time buyers, but about making sure that everyone has access to a safe and affordable place to call home 
.
. The prices are insane and their credit scores aren't as strong as the all-cash bidders, making it super hard for them to secure financing.