Illinois housing market: Everything you need to know
Whether you’re a born-and-raised Illinoisan or a newcomer to the Prairie State, there are exciting choices ahead of you. Cubs or White Sox? Ketchup on your Chicago dog? Beyond these quintessential decisions, the Illinois real estate market is a key aspect to consider. This guide provides an overview of the current real estate landscape in Illinois, encompassing both urban and rural areas.
Illinois Housing Market Overview:
Like many regions, the Illinois housing market tends to peak in the summer months. After a dip in January, median sale prices have been steadily climbing, according to Redfin data. Despite this rise, homes in Illinois remain remarkably affordable, averaging well below national median prices. However, there is a notable challenge: the current inventory of available homes for sale in Illinois is low. In July, Redfin reported a two-month supply, far below the five or six months needed for a balanced market. While lower prices benefit buyers, the low inventory points to a seller’s market.
Illinois Housing Trends and Stats:
- Median home sale price in Illinois as of July 2023: $287,900 (a 4.6 percent increase from the previous year).
- This is considerably lower than the nationwide median home price of $406,700, as reported by the National Association of Realtors.
- The sale-to-list ratio stands at 100.2 percent, indicating that homes typically sell slightly above their list price.
- Homes are on the market for a median of 43 days, a slight improvement from July 2022’s 45 days.
- According to CoreLogic’s ClosingCorp data, closing costs in Illinois average 2.1 percent of the home’s sale price, approximately $6,046 on a median-priced $287,900 home.
To Buy or Sell in the Illinois Housing Market:
For Home Sellers: The scarcity of available homes for sale makes listing your Illinois property a potentially sought-after commodity among buyers. Furthermore, with median home sale prices on the rise year-over-year, you may be able to secure a better price now compared to 2022. Collaborate with a local agent to accurately determine your home’s value and set an optimal asking price. Keep in mind the extended days-on-market statistic, which means your house may be listed for over a month before it sells. This is crucial to consider if you’re on a tight moving schedule or planning to purchase another property simultaneously.
For Home Buyers:
The low housing inventory presents limited options for buyers in Illinois at present. However, the state’s affordable home prices offer promising prospects for those looking to enter the market, potentially offsetting the impact of current high mortgage rates. Getting preapproved for a mortgage is a strategic initial step, demonstrating your seriousness to sellers and providing a clear budget range.
Illinois Housing Market Predictions:
While the housing market in the U.S. is showing signs of slowing down after a pandemic-induced surge, experts assert that there is no imminent danger of a crash. After a summer peak, a natural cooldown is expected through the remainder of the year. Additionally, the persistently high cost of borrowing is likely to continue affecting buyer activity in the near future, alongside a hesitancy among sellers to give up their low mortgage rates.
Finding an Illinois Real Estate Agent:
If you decide to navigate the Illinois housing market, having an experienced local real estate agent by your side is invaluable. Seek recommendations from trusted sources, explore online resources, and consider local yard signs. Vet several options to find the best fit for your needs. A knowledgeable agent, particularly one familiar with your specific area or neighborhood, can greatly enhance your buying or selling experience.
In conclusion
the Illinois real estate market offers unique opportunities for both buyers and sellers. With careful consideration and the right guidance, you can make the most of the current landscape, whether you’re looking to buy your dream home or sell your property at an optimal price.