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Moving to a new home has always been challenging. Moving in 2021 is even more challenging due to COVID-19. But moving to the Windy City is too wonderful to pass up.
By skimming the headlines, it would be easy to be worried about the Chicago real estate market. There’s sensationalism about prices skyrocketing and growth stagnating.
But that’s not true. For example, Chicago homes and apartments are selling faster than they have in almost 15 years. It’s an exciting time to move to Chicago, but you need to know the facts before you do.
If you’re planning on moving to Chicago in 2021, here are three things you need to know about the local real estate market as you start shopping.
1. It’s Currently a Seller’s Market
A Seller’s Market means that the pricing of homes favors sellers.
There are many potential reasons for this. For 2021, the big reason is that not a lot of homes are for sale.
This true nationwide. And the result has been prices rising by 11 percent last year.
What makes Chicago special is that more homes are becoming available on the market. As more homes are put up for sale, the prices will go down on average.
This is where the current seller’s market becomes a future buyer’s market. As the real estate industry returns back to normal, Chicago is starting to stabilize and welcome more people into its homes.
2. Interest Rates Are Rising
Around this time last year, you could get a mortgage or a loan with such a low rate that it was almost free. This is the result of some government measures to make sure that deals went through.
Unfortunately, all good things must come to an end. And as the government begins to ease its special rules, interest rates for mortgages and other loans are beginning to climb.
They are not expected to rise by much, however.
Like previously mentioned, more homes are being listed on the market every day. This shortage of inventory has affected not only the prices of the homes but the interest rates as well.
Healthy housing inventory will always keep rates low because banks want to remain competitive to buyers looking for a mortgage.
So don’t let rising interest rates worry you when searching for your new Chicago home. When you’re ready for the next step, you can see more on urbchicago.com and check what’s for sale.
3. The Government is Watching the Real Estate Market
There are multiple forces at play that affect any real estate market, including Chicago’s. One of the biggest ones is the United States government.
Due to the pandemic, the government has used its powers to implement rules and regulations that ensure that the real estate market remains relatively stable.
But as the world opens up again, the market we have now is drastically different than the one we had before.
This raises an important question, is the government going to do anything about it?
The answer depends on the real estate market trends for the next several months. If everything stabilizes, then the government will likely do nothing. But if they feel that something is off, they will do something about it.
Keep this in mind as you are shopping in Chicago because if anything gets too out of control, it is in the government’s best interests to get involved and help people.
Chicago Is Ready For You
These trends will guide you as you prepare for moving to Chicago.
The local real estate market is stabilizing and open to new residents.
Happy home hunting!