Where is the Illinois real estate market headed in 2024? - Gardi, Haught, Fischer & Bhosale LTD

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2024 real estate market trends

Where is the Illinois real estate market headed in 2024?

By Thomas Haught

Home prices, mortgage rates and inventory levels in Illinois will shape housing affordability in the coming year. What trends are expected in 2024 in the residential housing marketing in Illinois?

Interest rates

When inflation is high, interest rates rise. A higher interest rate means a higher monthly payment. So, of course, that has a significant impact on the housing market. But it is not the end all, be all.

When I bought my first home in 2001, interest rates were just about where they are now: in the high 7-percent range. If you were lucky enough to jump on the refinance bandwagon several years ago, you could have locked in at 2.25 percent. Sounds amazing and impossible even as I write this. But we have to remember, interest rates in the late 1970s and early 1980s were knocking on the door of 13 percent.

And people still bought houses. People will always buy houses.

Housing prices

A year ago, we were told to expect a price drop in 2023. I must have missed it! Housing prices grew coast to coast.

We can actually thank interest rates for this. With Boomers unwilling to downsize at these current interest rate, young families unwilling to upsize at these current interest rates and newbies unwilling to buy their first home at these current interest rates, inventory stayed low, keeping prices steadily high.

In fact, “Illinois homes continued to sell at eye-popping prices last month,” said Houzeo.com. The website said median home sale price rose 5.9 percent year-over-year from $256,300 to $272,300 in September.

What the future holds

Some recent data show lower home sales around Illinois, including the Chicago metro area. For example, October 2023 home sales (including single-family homes and condominiums) was more than 8 percent lower than in October 2022, according to Illinois Realtors®.

Despite recent trends, my firm’s predictions for 2024 sees interest rates coming down and inventory in Illinois and elsewhere going up. We anticipate it will be a very strong year for real estate. If you are buying or selling residential or commercial property, contact the attorneys at the law firm of Gardi Haught Fischer and Bhosale Ltd. for guidance. You can request a free case evaluation below.

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