Chicago area real estate didn’t stop for anything this summer. Despite a season of negative headlines and economic uncertainty, we have busy transaction volumes and higher home prices. This is great for Chicagoland homeowners, but it keeps things challenging for buyers! Let’s dive right in.
Taking the broad view first, the entire state of IL saw improved real estate activity during July 2020. Statewide, the median home price jumped 7.3% from a year ago, posting a new median of $234,900. “Median” means half of the homes sold for a higher amount than this, and half of them sold for less.
In the nine-county Chicago Metropolitan Statistical Area, July 2020 home prices increased by 6.9% over July 2019, putting the median home price at $277,000.
Within the city of Chicago itself, July home prices increased by 7.5% on a year-over-year basis, reaching a median price of $330,000.
Overall, we are seeing more home demand in the suburbs than in the city itself, even in higher price ranges. The pandemic has driven work-from-home and school-from-home trends that have buyers thinking about square footage – which is generally more expensive in the city. Also, with work-from-home options showing signs of sticking around, home searches are going further away from the workplace.
The big question is: will this upward trend last? It’s hard to say! While interest rates are crazy cheap, we still have an election year on our hands, and the pandemic could cause economic headaches down the road. But, if home demand stays consistent – and home inventory remains lean – then the Chicago real estate market will continue its positive run.
StartingPoint Realty – helping first-time Chicago home buyers since 2004!
StartingPoint Realty proudly serves first-time home buyers throughout the entire Chicago area. Get an introduction to home buying by attending our free home buying webinar! There’s no sales pressure and no obligation. Always feel welcome to contact us for help with your Chicago home buying questions!
Ryan Gable Broker/CEO Starting Point Realty
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