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January Market Update
Happy New Year! It is our sincerest hope that you usher in the new year with excitement & aspiration for what 2022 may bring.
2021 was another record-breaking year for the Chicago real estate market. Coming off of a tumultuous but productive 2020, last year returned to a more traditional, seasonal activity model. That said, we were busier than ever before. In many neighborhoods of Chicago, closed sales were up 46% over 2020, and the average sales price was up 7%. The busiest months were March and April.
Like any marketplace, Chicago’s housing market is driven by two primary forces — supply and demand. So let’s take a look at where we expect those factors to be as we head into 2022:
Demand
Conventional loan limits increased in 2021 to $647,200, increasing borrowers’ purchasing power for a traditional loan. Many interest rates remain at record lows, with a 30 year fixed rate loan below 3.5%.
Overall, people have addressed what “return to work” looks like for their given situation. A hybrid schedule may necessitate a more permanent home office solution and thus a need for more space.
The often discussed millennial buyers are now entering their peak life change years. Combine that with the significant increases in rent that are forecasted, and I believe that demand will be robust in 2022.
Supply
Chicago has an inventory challenge. In several of Chicago’s neighborhoods, we finished 2021 with a single-digit month’s supply of attached homes (condos/townhomes) and detached (single-family) homes. Both of those numbers are down over 60% compared to the end of 2020. The low supply coupled with the demand from buyers results in prices appreciating.
 Condition matters. In 20 years, we have never seen where this is more true. While buyers are ready to take action, it is essential to prepare your home to be ready. Most buyers are looking for turnkey, clean and well-maintained homes. Buyers are willing to push their budget at the top end of their budget for move-in-ready homes.
Overall, I’m incredibly optimistic about Chicagoland real estate, and I think 2022 will bring another very productive real estate market.
Best Wishes in 2022,
Kenneth Arrizola
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Charming Single Family Home - 1832 Euclid Avenue Berwyn, IL
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This adorable and bright 3 bed / 2.1 bath Georgian enjoys many fine appointments. The open floor plan is great for entertaining! The large kitchen offers plenty of counter space and has been updated with quartz countertops and breakfast bar, stainless steel appliances, and a wine fridge. Enjoy warm fires in your living room complements of a beautiful stone fireplace. All 3 beds are on the 2nd floor. Large walk-in closet in the primary bedroom. Baths are fully rehabbed with porcelain tile, glass doors, and trendy cabinets. Hardwood floors throughout the first and second floors. The finished lower level is currently utilized as an Office and Recreation Room. There is also a full bath, full laundry room, and ample size storage room as well. Newer windows, mechanicals, electric panel, and water service. Big rear yard and attractive stone patio offer enough space for your summer grilling parties. Convenient to nearby parks, shopping, and highway access. Can't go wrong here!
Learn more about this property
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What's Your Real Estate Resolution for the New Year?
The good news, for home sellers and buyers alike, is that 2022 should bring some more stability and predictability to the housing market, and a return to some normalcy as the country, and the area, recover from the lingering effects of the pandemic. Here is some insight from the Real Group team on what to expect in the new year!
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Market Conditions:
Ukrainian, Wicker Park, West Town
Currently, both the condo and detached single-family inventory in West Town sits at just above 2 months, making it a sellers market. It is worth keeping an eye on this plunging graph and it's impact on market times and home prices in the months ahead.
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5 Home Selling Myths It's Time to Ditch
When it comes time to sell your house, you’ll suddenly find that everyone around you becomes a bit of a know-it-all. And the advice isn’t just going to be coming from friends, family, and random passersby on the street. The only problem with these kernels of wisdom from all over? A lot of so-called advice is actually complete bunk, and could easily do you more harm than good as a seller! It’s time to sort out the facts from all of the fictions. Here are five common home selling myths that people like to parrot as truths – even though they could easily harm your sale.
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Market Conditions:
Douglas, Bronzeville, Prairie Shores
The months supply of inventory for condos in the Douglas/Bronzeville/Prairie Shores area currently sits between three and four months, meaning that it is a situation that is balanced for buyers and sellers, with a trend toward a seller's market. As of early 2022, we expect a single family home to sit on the market for just more than 100 days, or right around three to four months.
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