October 2020 Chicagoland Real Estate Market Update
Low Interest Rates, High Buyer Demand, and Low Inventory Are Creating a Competitive Real Estate Market
Before I dive in, I want to express my deep gratitude and appreciation to all my friends, family, past and current clients, and everyone who's supported me through the years. It means so much to me. Your support has led to me being nominated and featured in Chicago Agent Magazine's Who's Who in Chicagoland Real Estate 2020 Edition.
As far as market trends go, my last update was in August. It was very busy then, and the numbers were exceeding 2019 levels. We saw the same high numbers in September when we normally start to see a bit of a slow down. The MLS data for the Chicagoland area showed a lot of new listings sold. It’s still very busy out there, I’m continuing to see a lot of multiple offer situations, and inventory remains low.
In terms of inventory, we're seeing about a three-month supply, which is considered a seller’s market. That means if no other listings were allowed to hit the market, it would take three months to absorb all of that inventory. But because Chicago-area real estate is so local, one neighborhood could be busier than another. Some considerations to help you get a sense of the market trends in your area: Are you seeing more inventory hit the market in your neighborhood and fewer homes going under contract or selling? What is selling in the specific price ranges you're looking at?
Typically during an election year, we start to see a slowdown, but the housing market seems to be pretty unaffected so far. The driving factor is the historically low interest rates—you can get a mortgage for as low as 2.5% interest right now! And with COVID-19 and the quarantine that began in March, we were all forced to stay home which has led to a lot of people reevaluating if their home is right for them. And those planning on moving anyway in the next few years are accelerating that plan and doing it now versus later because of the low interest rates.
Are you thinking about buying or selling a home and have questions about your local market? Reach out to me at jnewsom@bhhschicago.com or (773) 580-5840 to schedule a consultation.