Chicago - Jan 2024 Market Update
Happy New Year! Hope everyone had a wonderful holiday season and start to 2024 :) Chicago just had its worst week-long freeze yet, and the sun is setting after 5pm now. There’s a lot to look forward to (spring) but in the meantime please enjoy our first market update of the year.
In this newsletter you’ll find:
Chicago December Market Stats
What to Expect in 2024 (and What We’ve Seen So Far)
Local News and Events
Get your ice skates on and check out the Maggie Daley Ribbon! Pro tip: buy your tickets + reserve a spot in advance to avoid lines
Chicago December Market Stats
December 2023 closed with an increased median home sales price when compared YoY as it did in November, this time with an increased number of monthly home sales.
Year to Year numbers (YoY%): Number of home sales increased to 1,485 total closed sales in December (+2.6% YoY), with a median sales price of $310,000, and increase of +7.8% compared to December 2022. The average market time for a home decreased by -8.1% since last December at 68 days on the market, and the inventory of homes for sale dropped to 4,236 homes, a decrease of 26.2% from the inventory in December 2022. The increase in home sales is likely driven by declining mortgage rates (dropped from 7.5% in November to ~7.25% in December)
Month to month numbers (MoM%): Compared to Nov 2023: Total home sales of 1,485 in Dec increased +4.9%; median price of $310,000 was lowered by 4.0%; Average market time of 68 days was +7.9% longer; Inventory of homes for sale of 4,236 homes decreased by -19.5%
What Should We Expect to see in 2024?
Experts like Dr. Lawrence Yun, Chief Economist at NAR, believe that there will be more sellers in the US in 2024 - these sellers have been the ones who have held on to their homes for the last few years through the pandemic and the post-pandemic years. However, life continues even as you’re trying to time the market (which is why you shouldn’t) - whether the reason is families are outgrowing their homes, divorces and deaths are causing downsizes, continuous movement with new jobs, etc - and these sellers are realizing that they cannot wait any longer.
We are not seeing this translate to the Chicago and Illinois housing market - at least on a Year over Year basis. For the first three months of 2024 (2024Q1), Dr. Daniel McMillen (Professor of Real Estate, University of Illinois Chicago) predicts:
Month over Month basis: an increase of total home sales with an increased median home sales price when compared with the previous month
Year over Year basis: a decrease of total home sales with an increased median home sales price compared with 2023Q1.
We expect mortgage rates to stay between 6-7% through 2024, and the declining mortgage rates have already resulted in increased home sales in December (as seen in Chicago home stats section). Even as mortgage rates have slightly increased in January (to ~6.78% from a low of 6.5%), we continue to see loan applications increase week over week due to the relative decrease from December (7.25%). This explains the rising home sale prices that we expect to continue throughout 2024.
The rate of rental price increases have slowed, due to increased availability from new construction projects. Rents increased just 0.4% in 2023Q3, compared to the 15.3% increase in early 2022.
For those who want to purchase a home before the spring rush this year (or even just thinking about it): Download this Homebuying Process Infographic to get started.
Local News + Events
Chicago (and a couple of our neighborhoods) made the top ten most searched cities and neighborhoods in 2023
Just moved, or want to cozy up your space for the cold Chicago winter?
Follow these steps when temperatures drop below zero degrees Fahrenheit
Valentine’s Day is coming up - time to get in your reservations (if you haven’t already). Your special someone doesn’t have to be someone you’re dating romantically; anyone (a friend, parent, grandparent) loves feeling appreciated with a box of their favorite sweets and flowers:
Best Hot Chocolates in Chicago, just because
Need other restaurant ideas? Here’s a list of Chicago’s James Beard Award winners to check out
Ongoing and Upcoming:
Chicago Restaurant week is happening now! Get your reservations in Jan 19-Feb 4, here’s a cheatsheet
Thanks for reading! If you’re interested in renting, buying, or selling, click on one of the below to get started.