Chicago’s real estate market has had an amazing year. Real estate prices grew by 7.5%, which is considered very good after the real estate bubble popped. As the market heated up last year and inventory dwindled, the prices went up. However, the latest projections forecast that Chicago real estate prices will actually be coming down slightly, by about .3% over the next year (according to Zillow estimates).
What does that mean for potential buyers? That it might not be too late for you to enter the Chicago real estate market this year, for these reasons:
- Mortgage rates ticked up slightly from last year, but are still tremendously low compared to the historical average.
- A whopping 25% of properties that go on the market have at least one significant price decrease before they’re purchased.
- Meanwhile, Chicago rent prices have been on a steady climb, making buying (or, renting your condo out) more lucrative.
- Roughly 8.5% of Chicago homes are delinquent on their mortgage (as compared to a national average of 7.2%) and might turn into foreclosures, offering buyers good deals.
If you’re looking to enter the market soon, don’t wait. Sales activity in Chicago usually heats up around April-May every year and peaks in the middle of summer. If you can afford to wait, the Fall/Winter season, when the market slows a little, might give you more opportunities to bargain with sellers.