January Real Estate Market Update In Chicago
Today we’ve got a quick market forecast for the first quarter of 2018 here in the Chicago market. According to Joe Kirchner, the chief economist at Realtor.com: consumer confidence is at a 15-year high. Existing home sales are up also 12%, while inventory is down significantly (its lowest point in history). Ultimately this means that the market is extremely hot for sellers. To give you some perspective, we haven’t seen this much activity at our open-houses (this early in the year) in over a decade! With significantly less inventory, there’s far less competition out there.
“…existing home sales are up 12%, while inventory is down significantly (its lowest point in history).”
On the other hand, we are seeing downward pressure on prices in the high-end of the market. This means there is an oversupply of new-construction homes in the luxury space (for our market, these are usually homes priced at 1 million and up.) We call this difference in supply an “inventory diversion.”
And finally, downtown Chicago is experiencing an unprecedented population boom, even surpassing New York City in its ratio of urban vs. suburban movers. Not only is Chicago already a uniquely sought-after destination, we are also seeing new zoning policies which have unlocked new neighborhoods for development. All in all, it’s an extremely exciting time to be buying or selling a house in Chicago! Hopefully this gives you a better perspective of what’s going on in our market. Thanks for tuning in!