Home Buying Considerations in Chicago

The Chicago housing market remains one of the nation’s hottest markets. It is still an attractive real estate investment compared to other major metro areas where property prices are flattening. In late 2020 and early 2021, the number of home sales in the metro area skyrocketed, driving prices to all-time highs. According to Illinois Realtors, compared to March 2020, sales in March 2021 were up by nearly 25 percent. In March 2020, the Chicago metro had more than 33,000 homes on the market, while the March 2021 figure stood at slightly over 16,000, a 50 percent drop.

For buyers, mortgage rates are still low, a key factor for many who are eager to get their dream house in an increasingly competitive market. In addition, more home sellers in Chicago are listing their properties in the hope of getting good returns. This means that buyers have more options, yet the mortgage rates are incredibly low. So unless you have financial or personal reasons to wait, this is an excellent time to buy a home in the Chicago area.

For those looking for a deal relative to what it would typically cost to get a house, a good option would be condo communities and apartment buildings in the heart of downtown Chicago. The COVID-19 pandemic and its social distancing protocols saw many residents in tall buildings and studio apartments seek less interaction and more space. That has left many vacant and available condos and apartments. If you are okay with less personal space, take advantage of the deals on offer as property managers seek to fill such vacancies. Some properties even come with perks such as waived amenity fees or a rent-free month.

However, according to the Chicago Tribune, the increased activity in the local property market witnessed in early 2021 might be slowly tapering off. In July 2021, the median sale price stood at about $345,000, a 5.3 percent rise from the figure recorded in July 2020. Therefore, this may not be the best time to acquire a property if you want to flip it for a profit. As a buyer, you can, however, still get a good value on newly constructed properties compared with older or resale inventory in trendier, nearby locations of Chicago.

The Department of Housing (HUD) offers several programs and services to prospective homebuyers in Chicago. For example, the Building Neighborhoods and Affordable Homes program is designed to help people acquire newly-built affordable homes in several targeted areas; Englewood Square, Woodlawn, South Lawndale, North Lawndale, and Humboldt Park/Garfield Park. Meanwhile, the Chicago Bungalow Association encourages the rehabilitation of old bungalows and assists Chicago bungalow owners in adapting modern and energy efficiency applications to strengthen the city’s neighborhoods.

The property market in Chicago is poised for a rebound as the COVID-19 pressures ease off in both the inner city and the suburbs. Property inventory in Chicago is at historically low levels, effectively pushing year-over-year house prices higher. As a result, median home prices have increased by over 14 percent throughout the region’s nine counties. The median listing price of a single-family home in August 2021 was $347,000.