The last few years have proved to be a windfall for many sellers in the Chicago area as the real estate market finally and fully rebounded from the long recession which devastated the economy and housing market. However, after a solid couple of years of increasing prices and quick home sales, some things are expected to change for next year. According to predictions from the Illinois Association of Realtors and University of Illinois professor Dr. Geoffrey J. D. Hewings, home prices in Chicago and throughout Illinois are expected to continue rising, but the low mortgage interest rates that buyers have been getting in the last couple of years may finally start climbing.
If the median home prices in Illinois do continue to rise next year, it’ll make four straight years of price gains, the report indicates. The median price change for the Chicago area is expected to climb anywhere between 3.8% to 8.4%, which is a bit higher than the estimated 2.1% to 6.9% growth for Illinois as a whole. However, home sales are expected to start off slow next year then continue rising as the year progresses. And with the winter off to an already frigid start, this predicted trend would be no big surprise.
However, two other things to keep in mind are how the rising mortgage interest rates and the continued low inventory may affect the real estate market moving into 2017. Buyers are rushing to close on homes right now to try and take advantage of the low interest rates, but could be deterred by higher rates that could take effect in the coming months. Meanwhile, available inventory actually continues to decrease, offering buyers less options and more competition.
- 2017 housing infographic highlights higher median prices, sales and more [Illinois Association of Realtors]
- Chicago real estate market reports [Curbed Chicago]