The new year is a great time to review the current state of the housing market and make some predictions for the new year. Whether you’re a first-time home buyer or a seasoned seller, knowing the housing market trends is the best way to prepare for the buying and selling process. Of course, trends are different depending on your local area, but some things will affect the entire housing market.

Read on for our 2023 Illinois Market Predictions: 

• Less Inventory. Like in the last few years, the number of homes on the market will continue to be less than what is needed. Illinois has gone through waves of increases and decreases in inventory available, but it has yet to bounce back to what it was in 2017 or even January 2020. Expect the number of homes on the market to continue to be lower than average.
• Prices Will Level Off. The high level of demand and the low amount of inventory has sent prices of homes soaring, especially at the height of the pandemic. Fortunately, real estate experts are predicting that prices will begin to come down and level out, albeit slowly. Illinois prices are expected to decrease by about 2-3% throughout the year. Though this may result from the notoriously high mortgage rates, sellers will likely start pricing their homes lower to entice buyers.
• Longer Market Times. Sellers, prepare for the fallout from these high mortgage rates and expect your homes to be on the market for longer than you may have expected. As a result, you should prepare to bring the price down so you can make a sale.
• More First Time Buyers. Despite these higher mortgage rates, we expect more first-time homebuyers to enter the market. Millennials have officially surpassed the population of baby boomers, and they’re ready to buy their first home due to rising rental rates and the move towards remote work, making it more attractive to young professionals to purchase property for the first time.
• Demand for Move-In Ready Homes. Buyers no longer want to wait 12-18 months for a new construction home or even a few months for a renovation to be completed on a fixer-upper home. People are increasingly interested in move-in-ready homes, particularly those with high-end or luxury features. If you’re a seller, consider this and consider completing these renovations before you put your home on the market—you may have better luck selling.

Choose a real estate agent that will genuinely take the time to understand your wants and needs. Contact Sandy Majetich-Toth at 815-791-2215. She can help you search for a new home or help you sell your current property. Get started today!

Sources:

https://www.noradarealestate.com/blog/illinois-housing-market/
https://chicagoagentmagazine.com/2022/12/05/2023-real-estate-market-predictions/
https://www.bankrate.com/real-estate/housing-market-predictions-2023/