2023 Year in Review & Predictions

2023 was a year of twists and turns for Chicagoland real estate. We don’t make the headlines every year, but this year real estate was front and center month after month as a result of the continued rate increases by the federal reserve. And while rates were the definite headline, there are other pieces of the market that I think are important to reflect on most importantly so that we are ready for a strong 2024.?

2023 Chicagoland real estate inventory

This year, as in 2022, inventory peaked for attached properties early in the year. The difference is where we started this year and last in terms of inventory: 2022 started with about 6,000 attached properties throughout the Chicagoland market, and each month decreased from there. This year, on the other hand, we started with only 4,500 attached properties, and declined from there. Detached home inventory has remained relatively stable (and low) throughout 2022 and 2023.

2023 Chicagoland real estate market time

Compared to the variability of attached home inventory, 2023 market time for attached homes remained relatively consistent. We saw a big dip last year, but this year hovered right around 67 days for attached homes. Single-family home market time is where we see a dramatic inverted bell curve with a steep drop between 2021 and 2022, and a steady increase this year that seems to be plateauing right around 67 days along with attached properties.?

2023 Chicagoland real estate average sales price

Perhaps the most exciting headline of our market for the past few years are the increasing sales prices – Chicago properties show time and time again that they hold value! We saw a huge increase from 2020 to 2023 with attached home values increasing 47% and detached increasing 31%!

Q4 2023 interest rates

This year for the holidays, the Fed gifted us all with lower interest rates, currently averaging in the high 6’s.?

Moving into 2024

As we ease into the new year, I anticipate a more balanced market with interest rates closer to our historic average over the past 20 years, around 6-7%. With rates remaining more consistent throughout the year, I predict that sellers who sat on the sidelines this year will list their homes, and the same will go for buyers – those who need to sell/buy, will do so this year.?

As has been true in the past several years, buyers continue to prefer move-in ready homes. If you are planning to sell your home, my advice is to make sure your home is as move-in ready as possible. If you need help finding good vendors, please reach out!?

And finally, Gold Coast and other downtown high rise areas remain good opportunities for buyers since demand has not yet fully picked up to pre-pandemic rates in those neighborhoods. But, with environments starting to encourage employees to return to the office, all of that could also change this year! Nearly all suburbs are still in high demand, though buyers are smart in this market and not willing to overpay.?

As always, the Chicagoland real estate market will keep us on our toes! Looking forward to an exciting 2024!

To view all of Busby Group's listings - click this link! https://www.compass.com/agents/julie-busby/