2025 is almost here! We’ll soon begin a new year of opportunities for Chicago home buyers and sellers. If you’re looking for insights on future conditions, here are 5 things that will affect Chicago area real estate!
1. Mortgage interest rates. As of early December 2024, the average rate on a 30-year fixed mortgage was 6.81%. Despite two modest rate cuts by the Federal Reserve, mortgage rates have remained elevated. If rates move downward in 2025, it will improve the purchase power of home buyers, and boost sales activity.
2. Home inventory levels. A limited supply of Chicago area homes for sale has been an ongoing challenge for home buyers. This is especially true in trendy neighborhoods and popular suburban locations. As long as there are more buyers than homes for sale, home prices will keep rising. However, each local market has its own supply and demand. If home inventory grows faster than sales in a given area, localized home prices could soften.
3. Overall economic conditions. The health of the economy, including job growth, stock market performance and consumer confidence, will impact home buying decisions. The health of the economy also affects home builders, and therefore home inventory.
4. Government. Changes to fiscal policies, housing regulations, taxes and so on, could affect the real estate market.
5. Demographic trends. The Boomer generation still owns much of the nation’s real estate. But Millennials and Gen Z buyers are shaping local markets, including Chicago’s. A key issue going forward is housing affordability.
All considered, will 2025 be a good year to buy or sell a home? Yes, if you are financially prepared and well-informed! You are the most important factor in your home buying or selling goals. If you’re thinking about moving in the New Year, we’re here to help!
StartingPoint Realty – serving Chicagoland since 2004!
StartingPoint Realty proudly serves home buyers and sellers throughout the entire Chicago area. We offer free, first-time home buyer seminars every month! We offer free home selling seminars too! Contact us for your free home buying or home selling consultation!
Ryan Gable Broker/CEO Starting Point Realty
Phone: 847.348.1154
Email: RyanGable@startingpointrealty.com
https://startingpointrealty.com/
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