What will happen in the 2021 Chicago Real Estate Market?
Real estate agents aren’t psychics. We don’t know what will happen tomorrow, let alone one year from now. But with the current information we have, we make our best guesses as to what the future will bring and use that information to help guide our clients.
There is still a lot going on in the world that makes it hard to guess what will happen to the 2021 Chicago Real Estate Market. There’s a transition of presidential power, an ongoing and surging pandemic, vaccine effectiveness, eviction moratoriums, and more.
While we are taking it day by day, it seems that if we could get through 2020, then 2021 won’t be as trying but still some challenges.
I believe 2021 will be a much more “normal” housing market in Chicago than 2020. There will still be masks and social distancing in the spring, but buyers will feel confident to come out with promising vaccine news.
Sellers will be more inclined to put their house on the market in the spring after waiting to see what would happen in 2020. This means we should see a rise in inventory by the end of the year, after a bullish spring.
Prices will dip during the winter and bounce back in the spring, plateauing by year’s end. Right now there is a shortage of single family homes and a balanced to buyers’ market for condos. Prices will reflect that, but the further we get into the spring, the more buyers that will be out, and the more positive trends we’ll see in the housing market.
People will begin looking downtown Chicago in increasing numbers. While there was a surge for more space (indoor and out) in people’s next homes, leading them to the fringes of Chicago and the suburbs, there will be deals to be had downtown. Additionally, people will begin to feel comfortable again around others, offices will start having more people come back to work (as well as people wanting to after being quarantined for so long), and the downtown allure will outweigh the rising costs for those fringe properties for those on the fence.
Overall, I think we’ll see a bumpy ride for 6 more months where things are uncertain, and then stabilize around May/June. We will see some after effects from what’s going on now, such as single family home prices decline or stabilize at some point, slow improvement in the downtown neighborhoods, and the condo market trending back to lower inventory with the under supply being built.
Year-over-year we’ve seen an increase in sales in Chicago and an increase in median prices. Perhaps many people pushed up their timeline on a new home to embrace the uncertain future with more space. Maybe some had a knee jerk reaction and will change their mind. Only time will tell.
If you’re thinking of making a move in 2021, or just want to talk more about the Chicago Housing Market, send me a message at firstname.lastname@example.org, or call 847.373.8114.