In the middle of the country, the third largest city in America sits between two coasts and is home to roughly 2.7-million people. We are naturally talking about Chicago and are excited to bring you details about the real estate market in this major city. One of the best things about Chicago is that it’s filled with so many interesting and unique neighborhoods which turn it into a real melting pot of people, culture, arts, and food.
Let’s take a look at what this city has to offer in real estate and livability, as well as what is on trend in this market that you should be aware of. We will include a list of resources here as well, in the event you’re planning to move to the city sometime soon.
The Current Chicago Market
As of the first quarter of 2019, the real estate market is showing a 3% drop in year to year sales making it an excellent time for buyers in Chicago. The median home price is just shy of $250,000, and homeowners can expect to pay $2000-$3000/year on property taxes. We are just coming off of Winter which is historically a slow time for real estate sales but dramatically ticks upward in April year after year.
According to Zillow data, homes are staying on the market for about 125 days, which will tighten as we head into Spring. Some of the up and coming neighborhoods include Printers Row, Greektown, The South Loop, and the Near Westside. Also, for those who may want to snag a deal, the formerly super hot “Gold Coast” has seen a dramatic market loss, but it’s safe to assume that won’t be the case for long since it is located so close to the Magnificent Mile and the downtown area in general.
Inventory is better than in years past, which tend to put buyers in the driver seat. While the market has cooled off, real estate professionals feel it’s merely trying to resume a bit of normalcy after years of the market being pretty hot. There is a construction boom, especially in the immediate downtown area. These units are luxury style condos which is beneficial in the short term but could pose a problem years from now with too much inventory.
Let’s Talk About Chicago’s Niche Real Estate Market
The truth is, there are probably a lot of “niche” markets within Chicago, but we want to talk about the rental market specifically. In two words, it’s huge. Less than 50% of Chicago residents own a home, meaning most of them rent. It’s hard to tell if this is due to the market cooling or if priorities have shifted as Millenials are starting to change how the real estate is consumed. This new group values different things are not buying homes (at least in terms of timing) as generations before them. Purchasing rental property has historically been a good investment in Chicago.
Market Trends in Chicago, IL
as of 4/25/19
The Chicago housing market is somewhat competitive. Homes in Chicago receive 1 offers on average and sell in around 85 days. The average sale price of a home in Chicago was $286K last month, down 1.4% since last year. The average sale price per square foot in Chicago is $197, down 2.0% since last year.
Home Sale Insights
Average over the last month
$286K Sale Price
-1.4% since last year
2.5% Under List Price
85 Days on Market
$197 Sale $/Sq. Ft.
-2% since last year
18.9% Down Payment
2391 Total Homes Sold
Some of the best neighborhoods in or around Chicago, Illinois are Near North Side, Lakeview and West Town. Consider buying or renting a home in one of these popular neighborhoods.
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If Bee Sure Home Inspections can help you with home inspection services, we invite you to give us a call or send us a message and let us know how we can help you with your inspection needs.
Bee Sure Home Inspection Services, LLC provides residential home inspections, Radon, Water & Mold Testing to Chicagoland/North Suburbs including Grayslake, Gurnee, Lake Villa, Lindenhurst, Hawthorn Woods, Mundelein, and Round Lake Beach, Illinois. Our service areas cover Lake County, McHenry County, and Northern Cook County, Illinois.