What Does The Chicagoland Real Estate Market Look Like In The Second Half Of 2021
September 06, 2021
For Buyers & Sellers
Chicago regularly finds itself atop lists of the best big cities in America, and with good reason. According to Conde Nast Traveler, which named Chicago its best big city in 2020 for the fourth year in a row, Chicago is "a world-class destination known for its impressive architecture, first-rate museums, brilliant chefs, and massive brewing scene," noting "it'll take several repeat visits to get through your list of must-dos." The city's vibrant food scene, sports teams, and arts and cultural offerings mean that there's never a shortage of answers to the question "what should we do this weekend?" and even longtime residents never stop learning new things about the city's rich history and culture.
It's no wonder that homebuyers from all over the country and the world want to consider settling in Chicago — but before doing that, there are some important things to know. Like the city itself, Chicagoland's real estate market is singular, frequently defying national trends. Here are just 5 things to look for in Chicagoland's real estate market in the second half of 2021.
1. Chicago Is A City Of Neighborhoods — And Contrasts
While all cities have distinct neighborhoods, Chicago is known as the "city of neighborhoods" for a reason. More than 200 neighborhoods make up Chicago's 77 community areas, each with a distinct history and personality. University of Chicago researchers defined Chicago's 77 community areas in the 1920s, although the boundaries of its neighborhoods are not always as well-defined. Chicago's diversity means there is a home to suit the personality of every buyer or investor. From up-and-coming neighborhoods like Logan Square and Avondale to student-friendly neighborhoods in Pilsen and Hyde Park, to suburban havens like Clarendon and Naperville, each neighborhood in Chicago has something unique to offer its residents. Buyers who are seeking to negotiate Chicago's hot real estate market are well advised to be flexible, and learn as much about each of Chicago's neighborhoods as possible to secure deals away from the hottest markets.2. Chicagoans Have Been Moving To The Suburbs
As the Covid-19 pandemic continues to upend normal life, Chicagoland residents who have been working from home have been seeking larger homes with more outdoor space - for many, that means a move to the suburbs. Away from downtown, sellers can continue to expect multiple offers on properties listed for sale. Homes that have more space for home offices, hobbies like music or art, or outdoor space for kids and pets to play have found themselves in high demand. According to Illinois REALTORSⓇ, Chicagoland's median home price in June was $319,000, part of a trend of steadily increasing prices, especially for single family homes. Inventory is down in the Chicago metro area as compared to a year ago, an indication that the seller's market the area has experienced during the past pandemic 18 months will continue.3. Chicagoland's Housing Market Is Hot, But Not Overheated
Although the Chicagoland housing market has been hot, driven in large part by low inventory and a slowed pace of new construction, the market has slowed incrementally this summer. The median home sale price in the city of Chicago was about $345,000 in July, about five percent higher than July 2020. According to data from the the Chicago association of REALTORSⓇ, that increase was smaller than the almost seven percent relative year-over-year increase in June from 2020 to 2021. Although the market is still extremely active, with the average listing staying on the market only 58 days, and inventory in the City of Chicago down 8.7%, from 9,677 homes in July 2020 to 8,834 homes in July 2021, the slight slowdown in the market may be encouraging to buyers who wanted to avoid the extraordinary seller's markets of the first half of 2021.4. Bidding Wars Are Not Uncommon
Even despite a slightly less active market, homesellers can still expect to receive multiple offers on property, particularly in desirable neighborhoods. Buyers are encouraged to make their offers stand out from the crowd by securing pre-approvals for mortgages and being prepared to waive some home sale contract contingencies. Sellers should also be mindful of the risks of selling in a hot market without having a place to live lined up - sellers who take advantage of a hot sellers market can quickly find themselves on the other end struggling to negotiate a tough buyer's market.5. Chicagoland's Real Estate Market Is Likely To Stay Active Through The End Of The Year
According to forecasts by Illinois REALTORSⓇ, a recovering economy and low interest rates are likely to continue to drive home sales throughout the remainder of 2021. Interest rates are expected to remain around three percent, motivating many investors and potential homebuyers to maximize their purchasing power by taking out mortgages before interest rates rise. Both buyers and sellers can expect a hot market that favors sellers in most of Chicagoland's neighborhoods.When Home Means More, You Need A Team With More To Offer
When you're negotiating a unique real estate market, you need a team with the right expertise. That's why your local Baird & Warner agent knows everything there is to know about Chicagoland's distinctive market conditions, and will be with you at every step of the way From finding the perfect home to connecting you with local experts in mortgage and title, your Baird & Warner agent is ready to make sure you're prepared to take on Chicago's unique market like a pro. Whether it's the beginning of a story or the end of a chapter, we're here to help.Tags:
