The Truth About Our Changing Chicagoland Market
If you’re thinking of buying or selling right now, what do recent changes in our market mean for you? Let’s find out.
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The tide might be turning.
After several years of continuous price gains, the real estate market seems to be reaching its price cap.
In June, the last month for which we have complete numbers, 14% of all listings saw a price cut. That's up from a low of 11.7% at the end of 2016.
Several other statistics support the idea of an emerging buyer’s market.
In the same month, housing demand fell 9.6%, the largest decline in over two years.
Unsurprisingly, the number of people requesting home tours has fallen by 6.1%. Mortgage applications to purchase a home has decreased as well.
A few things are at play here. One is rising mortgage rates, which have been steadily climbing for much of this year. Another is an overall decrease in affordability, resulting from a combination of the growth in home prices and mortgage rates.
There’s another important thing I should point out: If this is the start of a buyer's market, it's unlikely to be just a momentary blip.
One sign of this is that homebuilder sentiment has recently fallen to the lowest point in almost a year. In other words, homebuilders are losing confidence in their business, due to the aforementioned affordability concerns.
So what does this mean for you?
Well, it's certainly good news if you're looking to buy, because it means you will have more choices at more affordable prices.
To some extent, this is already visible in the Chicagoland market. Several great homes have recently come up for sale at very reasonable prices. If you want to get a full picture, take a look at the following complete listing of all Chicagoland homes for sale:
On the other hand, if you've been thinking of selling, this might mean that it’s time to act. Listing your home now would give you the best odds of achieving a top price before a change in the market occurs.
If you want to get an idea of what your home is currently worth based on recent Chicagoland sales, try out the following home value calculator:
And remember that all real estate is local. There are big differences even within Chicagoland, and prices can change from block to block.
If you want more specific information about the Chicagoland market, or you're mulling over the idea of buying or selling a home, give me a call at (847) 877-9881. I'm here to help.