The Super Bowl is Over... Now What?

With Matthew Stafford solidifying his legacy as a leader and Super Bowl winner…many Americans are nursing hangovers and swearing off betting for another year, while many Chicagoans anxiously await the hyper-active spring real estate market.

While no one has specifically been identified for starting this trend, tying “Super Bowl” weekend to the Chicago real estate market, my guess would be Thad Wong (founder & owner of @properties) is responsible. I envision Thad, in the early 2000s, using Super Bowl weekend as a primer for the market and infusing energy into the housing market for those cold winter months. Whether it was Thad Wong or not, Super Bowl weekend is now synonymous with the start of the Chicago spring real estate market.

As a seventeen-year veteran of the industry I have experienced many trends and cycles in the market place; from the super growth and construction boom of the mid-2000s to the crash of 2008, from seller’s markets to buyer’s markets and now a pandemic. The Chicago residential market was always known for its seasonality; with spring being the time for the best inventory and highest demand, summer traditionally a slower market with perfect weather, summer vacations and summer cottages taking priority. The fall market, starting mid-September, was known for being a short market allowing those spring or summer sellers one last ditch effort to sell before the hectic holidays and year-end. November and December would occasionally offer some corporate relocation clients, but was often down-time for sellers and real estate brokers.

For the past few years, the summer and fall markets have been shrinking with less demand, leading to lower sales-volume during these months. These factors put downward pressure on pricing. The Chicago real estate market, in my opinion, appears to be shifting to a one season market – spring. This tight and active spring market leads to some “irrational exuberance” with homes getting bid-up, selling quickly and often for more than list-price. Buyers feel rushed, anxious and frustrated, while sellers feel an air of confidence in being able to dictate the terms of the sale. A recent seller proposed the following to my buyer client; a 30-day close, as-is, waive the appraisal contingency, pay a $4,000 special assessment and rent the home back from the buyers (for FREE for two months). These are some of the most aggressive terms I have seen in?my entire career. These feelings of confidence for sellers can often be fleeting as the months of June and July creep in, buyer’s priorities shift to vacation homes (in Wisconsin & Michigan) or summer afternoons spent on the shores of Lake Michigan. August is every Chicagoan’s favorite month to embrace everything that is summer in the Windy City; trips to Wrigley Field, Millennium Park, street festivals and cook-outs, but NOT time to buy real estate. The summer and fall markets offer buyers less competition and more “reasonable” sellers, while also a lower number of homes to choose from. Unicorns (nearly perfect homes) sell in any market.

Understanding these dynamics is key for my clients. Chicago remains a diverse and dynamic real estate market and considered a value to many when compared to the East and West Coast markets, as well as international markets. My best counsel to clients is buy or sell when the time is right for you or your family and do not try to time the market based on real estate cycles. Serious buyers for the 2022 spring market should have their pre-approval in hand, align themselves with a top broker (me) and pursue off-market or pocket listings. If you want access to Zenlist, our home search mobile app that includes pocket listings, email me. New homes coming to the market will start to appear in coming days and be a consistent flow for the next ninety days. Low inventory at many price points and in many neighborhoods remains a critical factor in the market. The market is a living, breathing entity that I monitor daily on behalf of my clients, leading to insights and expertise that allow my clients to make informed real estate decision for their life transition.?