Chicago area home buyers displayed a preference for suburban homes during 2020, and the trend will probably stick around for a while. Here’s a look at what 2021 will bring for home buyers!
Suburban home buying competition. As urban events and attractions shut down and remote work and schooling kicked in, city living lost its allure. The Chicago real estate market is very uneven right now, with homes in the Loop and downtown areas taking much longer to sell than homes in the suburbs. There is a scarcity of homes for sale in Schaumburg and neighboring communities, and relentless demand is pushing up suburban home prices.
The upside: unexpected bargains in the city. For those who take the long-term view and want to live closer to Lake Michigan and world-class entertainment, this is a great time to shop for a Chicago home!
Crazy-low mortgage interest rates. Lenders are swamped with mortgage and refinance applications, and they can be very choosy about who gets the best rates. Some will not advertise their lowest rates on purpose, because they already have more business than they can handle. With rates so low, the ranks of home buyers and real estate investors have swelled, while home inventory has diminished.
The upside: your home buying dollar goes a lot further when rates are low! If you haven’t been in the market for a couple years, you might be surprised by the amount of home you can qualify for. We can refer you to excellent Chicago area lenders for your mortgage pre-approval!
An uneven economy. Chicago’s restaurants, hotels and entertainment venues are struggling. Illinois unemployment rates were as high as 14% during the spring 2020 pandemic lockdown. In recent months, unemployment levels have settled below 7%, but this isn’t great. How the economy does in 2021 comes down to how soon and how reliably the pandemic gets under control.
The upside: Chicago has been through tough economic cycles before. The Great Recession officially lasted from December of 2007 through June 2009, and the repercussions were felt for years. What’s different now is that the housing market is roaring along. This has kept a floor under the current economy, and has preserved home values.
Chicago home buyers need to be ready for anything in 2021. Fortunately, we can help you!
StartingPoint Realty – helping first-time 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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