5 things You Should Know About the Chicago Housing Market:

Prices continue to rise. Inventory is down to historically low levels, pushing year-over-year prices higher. 

Square footage and outdoor space are driving sales. Over the last five years home values in Chicago increased by over 34%. The desire for more space is one trend for Chicago area homebuyers that's also reflected nationwide. Buyers want rooms for home offices, virtual classrooms, & outdoor space that makes it easy to enjoy the outdoors privately.

Buyer competition is fierce in neighborhoods where houses, townhomes & small condo buildings provide a cozier residential feel. Serving up multiple offers on nearly every property that hits the market. Part of what is keeping the Chicago metro area's numbers more conservative than other parts of the nation is its densely populated downtown area, which has seen markedly quieter homebuyer activity compared to its neighbors.

Renewed interest in city dense living & accessibility to entertainment. After a prolonged period of home hibernation we are seeing a swift comeback for all that city living offers and it’s not close proximity to your office. Easy access to abundant entertainment options, amazing restaurants and nightlife after you’ve wrapped up work-from-home. We predict this is the beginning of another roaring 20’s era.

Aggressive inflation has forced the Federal Reserve to raise interest rates in April with several more predicted for the year. This will impact the bottom lines of homeowners and borrowers alike. Mortgage rates jumped 2 percentage points during the first three months of the year, the biggest quarterly climb in 28 years. As of April 14th, the 30-year fixed has jumped to 5%, the highest level in 11 years. The 15-year, fixed-rate mortgage has also increased to 4.17%, up 1.82 percentage points compared to a year ago. 

What does this mean?! 

Higher mortgage rates will inevitably slow home sales down in the coming months and pull down home price appreciation. If you are a buyer, be sure to check-in with your lender regularly to see how interest rates may be affecting your purchase power. If you are a seller, be prepared for changing market conditions.