December Market Update

"We are now in the twelfth and final month of 2020, or as I like to refer to it, March 259th. We rolled into January of this year with high hopes, and great expectations. For many of us, however, we’re looking forward to 2020 being in the rearview mirror very soon. 

2020 wasn’t all one big dumpster fire, however. There were most certainly highlights and some silver linings. There were weddings and anniversaries, birthdays and graduations, though they may have looked a bit different this year. And as of December 1st, 26,777 Chicagoans had an opportunity to celebrate going under contract on the purchase of a new home this year. That's about 2% more home purchases to celebrate than 2019! Our office set at least three different records this year, for most sales transactions ever in May, June, and August, for example. We have consistently beat the rest of the Chicago market all year long. 

So how is the Chicago real estate market doing in general? The answer to that question is quite neighborhood dependent, but the overall outlook is quite good. As we enter the final weeks of the year, there are 4.2 months of inventory across the entire city of Chicago. That is a market that is perfectly balanced between seller supply and buyer demand. This is a number that buyers, sellers, and real estate brokers can universally celebrate.

As we dig deeper, we can see that some neighborhoods, like the Near North neighborhood, have 9.7 months of inventory - an oversupply. There are more homes for sale in the neighborhood just north of the Loop than there are interested buyers. Given the number of folks working from home, and the fact that many of the dining and entertainment options are operating at a minimum now, this isn’t a surprise. 



If we look north and west, the story is dramatically different. Portage Park, for example, has only 2.5 months of inventory. It’s a sellers market, and buyers have to move fast on homes that appeal to them, or they will lose an opportunity to other eager buyers. 

More than ever it’s important to understand your priorities and timing, and to speak to a real estate team that understands what’s happening from neighborhood to neighborhood. 

Cheers, the last 30 days of March 2020!" - Jason Finn

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