Chicago Housing Market 2018 Year in Review & Look Ahead
Median sales prices of homes in the City of Chicago were relatively flat over the past twelve months with only a slight increase of 1.75%. As the chart below shows, the median sales prices of Single Family Homes -- including both attached (condo/townhomes) and detached homes – was $285,000 as of January 2018 and $290,000 as of December 2018 with the past 6 months being particularly flat.
Still, this is a continuation of increasing overall median sales prices since the Chicago market hit bottom in 2012. Median sales prices have not yet returned to their highest of $299,990 as of July 2008, now over 10 years ago, but are just shy of that record by 3.3% (see below).
The Year Ahead - 2019: Doom, Gloom, or Boom?
A quick google search about the 2019 Chicago Housing Market front loads the doom. Words like “weakest” “bleak” and “tough” are scattered through the headlines. It is true: mortgage interest rates are rising and some fear that this may cause a slowdown in the housing market. However, other economic indicators like the interest rates on bonds, suggest that part of the reason interest rates are rising is because of confidence in the overall health of the economy (which has become more volatile in recent weeks).
How does this affect you?
If you are considering selling your home you may be wondering how all of these predictions affect you. One of the best things you can do is arm yourself with information. Start by consulting Real Estate professionals. Don’t rely on uncertain algorithms like RedFin or Zillow that do not take into consideration factors such as the actual size of your home, recent updates you’ve made, specific benefits of your location, etc. While the overall Chicago housing market may indeed turn out to be the “slowest of the Top 100 Largest U.S. Metros” per Realtor.com’s Chief Economist Danielle Hale, Chicago is a city of neighborhood with each creating its own distinct sub-market (click here to read about the how the lower and upper ends of the market have become bifurcated in the northwest suburbs). Our Real Estate Appraisers have years of experience covering specific sub-markets of Chicago and the northwestern, southwestern, and far-western suburbs. Our appraisers analyze specific trends such as marketing time (how many days a home is usually on the market before it sells) and inventory and supply of homes available to prospective buyers.
This post was written by Stephanie Faulkner, the Appraisal Director at Rowe Appraisal Group. Stephanie lived in Chicago for many years and recently moved to Dekalb. She is a 2nd generation appraiser, and is one of the most detailed, analytical appraisers at Rowe Appraisal Group.