Factors That Influence the Chicago Real Estate Market?

Factors That Influence the Chicago Real Estate Market?

  • Choose City Living
  • 08/3/22

Predicting the future of Chicago residential real estate is practically impossible in these volatile
times. But if you want to make sound real estate investments, working with an experienced
real estate professional is essential. Chicago is vast. A high-caliber agent can help you
understand all of its local markets. Whether your goal is to invest in a Gold Coast condo or you’ve zeroed in on homes for sale in Old Town Chicago, we’re here to share details of what impacts the Chicago real estate market. This way, your investments and home sales will be more prosperous.

Everything you need to know about Chicago real estate

Chicago market introduction

The real estate market in Chicago varies depending upon the location.Market trends proclaimed
on the national news do not apply across the board to every neighborhood. For example, the
West Loop market, flush with new construction luxury condos is impacted very differently than
Ukrainian Village, which offers more modest vintage homes. Yet both of these neighborhoods
are popular among young professionals and career-driven individuals.. The neighborhood and
type of investment that you choose to make will depend upon your goals. Are you looking for
your dream home to enjoy with your family or perhaps an investment condo that will provide
some passive income? Your real estate agent can help you understand how to match your
goals with the right property.

Chicago real estate market overview

Recently,Chicago’s real estate market was flourishing for sellers. Prices were soaring due to a
shortage in inventory and high costs for new construction. The inventory of homes for sale was down 28.6% compared to last year. Even in less-expensive areas of Chicago, many serious
buyers were losing out on bidding wars. Indeed, the median price for homes in Chicago has
grown substantially in the last couple of years. This April, the median sales price was $370,000,
up from $310,000 in April 2019. However, economic uncertainty caused by inflation,fear of an
impending recession, stock market fluctuation, the war in Ukraine, and the rise of interest rates
has definitely impacted real estate sales and prices have been leveling off. What you need to
know is that these changes have been felt to a different extent in different neighborhoods.

Chicago population overview

The population of Chicago directly impacts the real estate market. It’s been steadily increasing
for the last decade. According to recent census reports, Chicago is the third-largest city in the
United States — behind only New York City and Los Angeles. Many areas of Chicago have
reported rapid growth, especially as employment rates rise and more young professionals look
to make Chicago their home.

Chicago is home to more than 2.5 million people in the city, so you can always expect bustling
city streets and well-attended events. And while it’s impossible to predict the population growth
of Chicago and how that will affect the future of real estate, it’s a safe assumption that
population rates will continue to rise as job opportunities rise. WhIle we may not see the same
surge in prices as we recently experienced, the real estate market will likely remain competitive,
and Chicago condos and homes will remain desirable.

The job market in Chicago

The job market in Chicago is crucial to understanding the city’s real estate market. If there aren’t
quality employment opportunities, then the real estate market may not be sustainable. Chicago
is one of the major financial centers in the entire world. It’s home to the second-largest central
business district in the country, and employment growth is projected to increase, adding
hundreds of thousands of jobs.

Here are some key job market stats to consider before buying Chicago real estate:
● The unemployment rate in Chicago is currently 4.1%, which is only slightly higher than
the national average.

● The key industry sectors in Chicago include but are not limited to the following: business,
professional services, transportation, healthcare, technology, manufacturing, and the
food industry.

● Some of the largest employers in Chicago include but are not limited to the following: the
U.S. Government, Chicago Public Schools, Northwestern Memorial Healthcare, and the
City of Chicago.

Chicago real estate frequently asked questions

Are home prices in Chicago increasing or decreasing?

Chicago home prices have been holding fairly steady since their rise in 2021. While metrics vary
depending on the area you’re looking at, prices are trending upwards though the rate of
increase has largely slowed.

How quickly are homes selling in Chicago?

The speed at which a home will sell largely depends upon the house, location, and often the
real estate agent you partner with throughout the sale. In the modern real estate market, it’s not
unusual for homes to close in under 60 days. Ever since the summer of 2020, homes have been
selling at record rates, so while you want to prepare and market your home strategically, it’s not
unreasonable to sell within a couple of months, if not a couple of weeks.

Keep in mind that it’s normal for market times to rise as we get later into the year. Sellers who cannot list until after the summer can expect their homes to take longer to sell. Listings that go up in winter may take even longer, whereas spring listings tend to get snatched up quickly. 

Is Chicago real estate a buyer’s or seller's market?

The market in Chicago is not dissimilar from the national market in that it is in transition. While
statistics vary from one neighborhood to another, there is still a shortage in the supply of homes,
and rental prices continue to escalate, which means that serious buyers may need to be a bit
more aggressive when finding the right property. However, sellers should understand that
rising interest rates coupled with a decline in stock market portfolios has seriously impacted the
buying power of those looking for their next home.

Why should I move to Chicago?

With its many downtown neighborhoods, proximity to Lake Michigan, and world-class cultural
institutions, Chicago is one of America’s greatest cities. Whatever your interests — sports
stadiums, nightlife, shopping, or education — Chicago has something to offer everyone. Plus,
the city is home to Northwestern University, DePaul University, University of Chicago, Loyola
University and UIC. With a diversified economy based on health care, education, finance,
technology and manufacturing, you can rest easy investing in Chicago real estate.

Is now a good time to look for homes for sale in Chicago?

With a city this vibrant and with so much to offer, we think anytime is a good time to look for
homes for sale in Chicago! You can always reach out to our team at Choose City Living if you’d
like to get a look at our current inventory. Working with a real estate agent is often the best way
to determine if now is a good time for you to buy a home. Never feel pressured to buy simply
because the market is hot. You must thoroughly examine your options to invest in a property
meet your real estate goals and that you will love.

Are you hoping to call Chicago home?

If you have any questions about Chicago real estate — whether you’re looking for condos for
sale in Gold Coast, River North or West Loop, or homes for sale in Old Town, Lincoln Park or
Bucktown— then reach out to our team at Choose City Living. We are serious about our clients
and always commit to providing them with the best service possible. We want to help you enjoy
your real estate experience and end up with a home that best fits your lifestyle and
needs.Reach out today for more information on the current Chicago real estate market.

Work With Us

Our goal is for you to enjoy your new home and the process getting there. Let us be your guides, we’ve been down that road before, we got you covered.