The groundhog was right! We’re having an early spring in Chicago, no matter what the temperature is outside. Chicago area real estate began heating up in January, with early-bird home buyers looking to beat the spring rush. Last month, Chicago homes for sale spent an average of just 28 days on market, which is fast for any month in the year – but really fast for January!
Fast-moving home sales are being driven by low home inventory, which has been an ongoing issue. The inventory of homes for sale in Chicago was 27% lower in January 2024 compared to January 2023. Meanwhile, new construction is also down, with Chicago housing starts trending 24% lower than a year ago. The silver lining: mortgage interest rates are not much higher than they were a year ago, and buyers have become acclimated to them. Buyers are also using financing strategies like buydowns, points, Adjustable Rate Mortgages and larger down payments to offset higher rates.
Most economists expect mortgage interest rates to come down during 2024. If this happens, it will excite a market that already has more buyers than sellers, further boosting home prices. This is one reason buyers shouldn’t wait too long to enter the market; any savings on rates could be wiped out by fast-rising home prices and bidding wars.
This is good news for Chicago home sellers. If you own a single-family home, condo, or a multi-family property, there is a buyer for it. And while Chicago real estate is a year-around business, the spring and summer months typically bring the highest sales price averages of the year. If you are considering a move during 2024, this is a great time to talk things over and see where your home value stands. We provide free market value evaluations, by the way, and there is never any pressure to sell your home.
If you are planning to buy a home this year, start by getting a mortgage pre-approval from a reliable, local lender. Too many buyers skip this step until they are knee-deep in the home search. If you’re going up against other home buyers for the same property, you can’t afford to be the only one without a pre-approval letter! Sellers want evidence of your ability to close the deal, and a pre-approval letter shows your financial qualifications. We can refer you to excellent mortgage lenders who will walk you through the process.
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! . Contact us for your free home buying or home selling consultation!
Ryan Gable Broker/CEO Starting Point Realty
Become a StartingPoint Realty Facebook Fan
Follow StartingPoint Realty on Twitter