Chicago real estate had a pretty good year during 2019! On a year-over-year basis, median single-family home prices increased by 4.0% as of November 2019. Homes spent an average of 43 days on market, setting a brisk pace for sales in entry-level price ranges. But despite lean home inventories in certain price ranges and markets, home buyers saw fewer bidding wars. This was a welcome change from 2018.
Things won’t be exactly the same during 2020 for a few reasons. First, we have the impact of recent property tax increases, which could dampen high-end home sales. We also have a host of new laws in effect, from legalized recreational marijuana, to surchages on ride-sharing services like Uber. On a broader level, 2020 is a major election year, and anything that triggers consumer uncertainty can make home buyers tap the brakes.
Here are a few things we can be reasonably sure of:
1. Low mortgage interest rates. We already have lower rates in 2020 than we did in the early months of 2019. The Federal Reserve is not expected to make any significant changes to its current monetary policy.
2. Low home inventory in entry-level price ranges, and growing inventory in upper-level price ranges. Luxury home buyers will be empowered by low interest rates and the recent hike in conforming loan limits. They are likely to encounter motivated sellers in tax-expensive communities, too! However, the market for first-time home buyers will remain challenging.
3. Highly-localized markets with changing conditions. In many neighborhoods, we are likely to see rising home prices, but home buyers should not make any assumptions. Before making an offer on any home, take a look at recent sales comparisons for similar properties in the neighborhood. Be aware of the sales trends for homes in your price range.
For the best advantage, work closely with our local market experts at StartingPoint Realty! We’ve been helping first-time home buyers succeed in all market conditions, since 2004!
StartingPoint Realty – your first-time home buyer specialists!
StartingPoint Realty proudly serves first-time home buyers throughout the Chicago area. Get an introduction to home buying by attending our free home buying seminar! There’s no sales pressure and no obligation. Space is limited, so please register your choice of location and date to reserve your seat!
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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