What Our 2020 Chicago Market Has in Store
Now that we’re at the beginning of another new year, I’ve been getting asked a lot lately what I think will happen for the rest of 2020 in our Chicago market. While I don’t have a crystal ball, there are a few trends to keep an eye on based on what’s happening now.
First, are we in a buyer’s or seller’s market? The answer depends. Here in the city, we’re in a seller’s market. In 2019, the market did slow a bit in terms of price growth and the number of sales, but conditions still favor sellers. This doesn’t mean every neighborhood and/or housing type is in a seller’s market, though. For example, large downtown condos face a buyer’s market. In some cases, we’re seeing about 10 months’ worth of inventory, and that’s before we get into the 2020 selling season.
This market has really been impacted by demographic trends, which is something you need to be aware of whether you’re buying or selling. Downtown condo owners, for example, when upsizing or upgrading, are choosing to move into larger homes rather than larger condos. As a result, the pool of buyers for large condos is smaller than most people think, and it’s impacting condo owners’ ability to sell their properties at the price they want.
As far as inventory goes, we saw an uptick in homes for sale in 2019, but, as previously mentioned, we saw a decline in the number of home sales. More supply and less demand means a market slowdown, but again, it varies depending on your local area. Move-in ready homes in more affordable areas, like parts of the South Side, can still attract multiple offers and sell within days. The market has slowed, but it’s not bloated to the point where we have to worry about a total shutdown.
What does this mean for your buying or selling plans? Keep in mind that we’re still seeing historically low interest rates, which plays a big role in attracting buyers to the market and keeping them interested in buying. If you’re thinking of selling, your personal circumstances will dictate the exact time to do it, but now is a great time to list because of these factors. This will help your ability to sell for a high price.
When it comes to buying, the smart buyers are either already in the market or looking to enter it before 2020 is over. With the pullback in prices, you might be able to get a better deal than you would have in the past couple of years.
Whether you’re thinking of buying or selling or have any more questions about our market, don’t hesitate to reach out to me. I’d be happy to help you understand how market trends apply to you.
