Is the real estate market in Chicago IL still a buyer’s market? Is now the time to invest in buying a home? As a complex market space in a rapidly changing environment, there’s much to know about home buying in Chicago IL, right now. Here’s what some experts are predicting for the upcoming spring market. The answer isn’t as simple as many would expect.
State of the Market for Buyers
Consider the January Market
Coming out of December into traditionally the slow season of home buying, the Chicago IL real estate market continues to impress. Even with icy weather, buyers in January took to open houses and put homes under contract quickly, signaling a strong demand remains in the area into 2022.
It’s not typically a busy time of the year for buyers or sellers, but the current real estate market is anything but average. Inventory is still slim in some areas, which creates more of a seller’s market. However, that’s not the case for all types of property.
What Types of Homes Are in Demand?
Chicago IL real estate is competitive in that numerous types of homes are available. In the Downtown area, condos are very much in demand, especially in some of the new units available. Yet, single-family homes in good locations are still some of the city’s most sought-after real estate. These homes, when well-priced, are selling quickly, sometimes days after being listed for sale.
It’s also important to note that condos and townhomes are also in demand today. Those newer properties are good options, especially close to the city, but condos that are off the beaten path or offer excellent onsite amenities, get a lot of attention from buyers today. Many Millennials are still not that ready to invest in homes, and these properties fit the bill.
What About Location? What Are the Most Desirable Neighborhoods in Chicago IL?
This really depends on location, too. Some neighborhoods are seeing a significant demand, with proper selling quickly as soon as it’s listed. Other areas are slow-moving, often because they lack key features or accessible locations.
Some of the best neighborhoods for 2022 include:
- Rogers Park: Located about 10 miles from the heart of the city, this walkable neighborhood has some beautiful 1930s homes, good access to the beach, and lots of demand from those looking for accessibility.
- Logan Square: Quite the popular area, many of the single-family homes here are 100-year old treasures, including grey stones and bungalows. Home prices are higher here, but the exclusiveness of the area makes it in demand.
- Avondale: With lower priced homes than some areas, this is a traditional middle-class neighborhood with excellent access to I-90. It’s noted for its single family homes and rental properties.
- Edgewater: Just to the south of Rogers Park, Edgewater has some of the most significant increases in value in the last few years. It’s an up-and-coming community with much to offer.
- Humboldt Park: Another outstanding place for single-family homes is this community, which has seen an uptick in value thanks to the redevelopment of distressed properties here. It’s an excellent location for investors, too.
It’s also important to remember that even in these markets, price matters. That is, many of these homes have very high values, but they also have large mortgages. Sellers in these areas need to be careful to price their homes properly to attract buyers – and that’s more difficult than many realize considering the current real estate market conditions here.
What Are Chicago IL Real Estate Buyers Looking For Today?
Many people who are home buying are looking for the same types of features when considering the real estate options here. Those include:
- Excellent neighborhoods, including those with tree-lined sidewalks and moderate to larger sized yards.
- Good access to transportation, including I-90 and public transportation into the city.
- Access to shopping and upscale restaurants and service providers
Real estate that can offer this, along with things like good schools and access to area parks, are likely to see the most demand in today’s real estate market.
Rental Investment Properties in Chicago IL
While owner purchases make up the most transactions by far, there’s also an uptick in real estate purchased for rental or investment needs. There’s a lot of foreign cash coming into the real estate market that’s helping to make this type of investment buying more prominent. Paying cash for these properties opens the door to good deals and affordable home prices.
For those planning to sell and hoping to attract these buyers, be careful. Sellers who are placing higher prices on likely investment properties are watching as many investors walk away instead of home buying. The right price matters.
Chicago IL Real Estate Financing Access Is a Concern
One of the factors that some would-be buyers are facing is limitations on accessing loans to purchase homes. Many banks are still limiting access to requirements such as large down payment requirements. It’s not uncommon for buyers to lose loan offers right at the last minute, even right before closing escrow, due to changes in real estate market conditions and tightening lending standards. That’s partially due to factors such as economic conditions.
Finding the Right Help Makes the Difference
There’s no better resource for those interested in home buying in Chicago IL in 2022 than having a professional nearby to help advise you. That includes a local real estate agent that’s on top of the local real estate market and ready to invest the time into helping you find the deals you desire.
If you are a seller hoping to sell fast, this is a tricky market. There’s no doubt that opportunities exist for exceptional sales, but unless your property is in a desirable area and ready to move into, it’s going to be harder to find available real estate to meet your needs.
That’s where selling a house fast to a trusted investor may be ideal. If you need to sell a property near Chicago IL quickly, we can help you. Take a few minutes to contact us to learn what offers may be available to you. We are a reliable home buying company that can help!