Don't Let Rising Prices Get in the Way of Your New Chicago Home

Home Prices PostIf you are starting to look for a new Chicago home or condo, now is the time buy. There is an abundance of Chicago homes for sale and many great areas in town to choose from.
There are many reasons why looking for your dream home in this market is a good idea. Today’s market can actually be beneficial for both the seller and the buyer. Currently, sales and median home prices in Chicago are higher than a year ago. What does this mean? It means that the number of single-family homes and condominiums around the Chicago area has increased by 9.6 percent or 12,400 properties from this time last year, with a steady increase over the last six months.
The median price during the month of July for a home in Chicago is $266,700. That is a 9.2 percent increase since last year, but for the month of July there was a more moderate growth of 4 percent. For the first two quarters of 2015 there were more buyers, but fewer homes to choose from. The start of the third quarter saw a decrease in buyers, which caused home prices to balance out. This shifted the market in the buyer’s favor, which prompted sellers to adjust home prices to accommodate the change. Currently there have been about 3,000 properties sold, which is a 9.7 percent increase from last July. Additionally, the median home price has increased by 5.2 percent for an average of $285,000.
Unfortunately, condos in the Chicago area have not seen a significant price increase. The median selling price only increased by 0.8 percent from last July, while single-family homes were up 11.9 percent to an average price of $230,000. Even though these numbers do not reflect a positive trend, the number of condos sold increased to 1,950 units which is an 11.9 percent increase. Even though prices are reasonable, buyers are frustrated due to the limited number of possibilities. There are times that the buyer will find the perfect Chicago condo, but might be out bid by another buyer. Of course, prices are still fantastic overall for condos, so don’t get discouraged!
There are fewer available Chicago homes than a year ago. This is true for the surrounding nine counties as well, where the number of available homes have decreased by 8.5 percent.
If your home is ready and appealing to the buyer it will sell at a much quicker rate. Current buyers are looking for clean, updated homes. Remember to remove any inside clutter and create an outside that will draw potential buyers’ attention. See our recent article on how to prepare your home for sale. This also applies to condos with higher demand for newer buildings, which drives up the asking price. This has caused Chicago homes and condos to sell at a more uneven price. Sellers who invest in upgrades to their home are trying to make up the difference prior to putting it on the market.
Individuals who lost their homes to foreclosure and have worked to get back on their feet are now starting to buy again. This is very positive news for home sellers. Another factor that buyers and sellers are watching is interest rates. Currently interest rates are low with no time frame as to when they might increase. This has stalled some buyers, but once the rates start to increase these particular buyers will join the market in search of their new Chicago home.
Additionally, renters may decide it is time to buy and stop renting.  Some of them are looking to switch to a mortgage due to the low interest rates. Buyers are looking at properties that have a mortgage of equal or lesser value so renting might not be the best option.
With the continued risk of higher interest rates and increased home prices, more and more people are looking to buy.
If you are currently on the fence about purchasing a home, now is the time to take a trip to the Chicago neighborhood that you dream of living in to see what is on the market.