If you’ve been following real estate prices nationwide, you know they’ve been increasing year after year for over a decade. These rising prices are actually a key factor in the high level of inflation that economists are becoming increasingly concerned about. When it comes to these real estate prices, Chicago is no different.
- The median home price in the Chicagoland area was $288,000 in December 2021, up 8.5% from $265,000 in December 2020. That rate of growth means a home would double in price in about eight and a half years.
- The median price of a home in the city of Chicago proper in December 2021 was $315,000, up 3.3 percent compared to December 2020 when it was $305,000.
So far, the 2022 real estate market looks no different. After years of delaying, the Federal Reserve is now quite serious about raising interest rates. As a reminder, rates have been at or near record lows for about five years now. Higher interest rates affect mortgage rates, and should have a cooling effect on home purchases. The first increase came in March, when rates went up .25%. More increases are in line.
According to a report published by the Illinois Association of Realtors, in 2022, median prices are expected to grow continuously within a narrower and lower range than in 2021.
With all that in mind, is this a good time to sell your condo in Chicago? As good a time as any, really. With rates headed upwards, and other economic uncertainty on the horizon, this may be the best the Chicagoland real estate market will be for a while.
The other important thing to consider is that, unless your condo is an investment property, you will need to buy or rent another place to live, at equally high prices, and with less optimal mortgage rate than you would have gotten in the past 5 years.
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