Did My Predictions for the 2019 Market Come True?
At the beginning of this year, I made some predictions about how the first six months of 2019 would go. Now that we’re past that point and are over halfway to 2020, I want to circle back to those predictions and discuss what actually happened. More importantly, I’d like to talk about how these things will impact you and your real estate goals.
My first prediction was that buyers would have more homes to choose from in our Downtown Chicago market. And given that there is 16% more inventory available right now compared to this time last year, I’d say this prediction definitely came true.
One prediction that didn’t come to be, however, was my assumption that we would remain in a seller’s market. In the Downtown market, we have shifted into a buyer’s market. This doesn’t mean that sellers can’t find success in our market, however; it simply means that homes are taking longer to sell and that strategic pricing is critical.
It is worth noting, though, that the west and south sides of the city are experiencing different market conditions than in our Downtown area. In those neighborhoods, inventory is low and multiple-offer situations are common. There’s a lot of buyer demand for move-in ready homes in these areas, and the relative affordability there has given me a lot of work this year. So this is certainly something to keep in mind if you’re looking to move.
Finally, my last prediction was that interest rates and property taxes would both rise. This prediction actually only came to be partially true: Interest rates have decreased throughout 2019 so far, but property taxes have, unfortunately, gone up.
This means that buying a home has become more affordable, but the rise in property taxes will certainly eat into homeowners’ monthly housing budgets.
Again, though, conditions vary in the west and south sides of Chicago. Property taxes are lower in these areas. So, again, if you’ve been thinking of moving to either of these areas, this point may serve as one more incentive to do so.
With all of that said, I’d be happy to sit down and speak with you about your real estate goals. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.
