News

First Quarter of 2015 Shows Growth of 1.3% in House Prices

The Spring Housing Market can be a good indicator for where we are headed. Midwest sales are up an average of 12.1 percent as a whole, and the Chicago housing market is seeing home sales up 6.4% compared to 2014 numbers.

 Let’s take a look at all the factors making today’s market what it is and what effect it will have on both sellers and buyers.

Rising Sales

So why are sales prices up? A shrinking housing inventory means more buyers fighting over fewer options. So sellers have an advantage when it comes to pricing their homes. In addition, we’re experiencing a surge of the largest buyer population–people between the ages of 25 and 34, known as millennials–and a booming commercial and tech industry- that’s bringing more people to the city.

Demand is outgrowing the supply.

Large Buyer Pool

Despite rising sales prices, there’s a flood of buyers looking for new homes. Home prices are still 23% lower, on average than at peak in 2006, and many feel that they should take advantage at the current level.

In addition, Interest rates are currently extremely low, but with projections showing them raising from an average of 3.7 percent in quarter one to 4.1 percent in quarter four, the buyer pool will start to shrink.

And with the effort to replenish the inventory levels by constructing more than 3,100 housing units scheduled to go up in 2015 with another 6,400 units scheduled for a 2016 completion, we’re looking at a fairly balanced market towards the end of the year.

Time to Act

For sellers, now is the time to take advantage of low inventory and high demand. If your home is priced well, you’ll get a lot of bites quickly. And for buyers, now is a great time to get more for your money with the low interest rates. 

2015 Chicago Housing Market Trends

Thank You and Have a Great Day

Marina Jacobson
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