Chicago - Oct 2023 Market Update
As we prepare for the last couple months of the year, we’ve quietly accepted that Chicago autumn is upon us and embraced the crisp fall weather. In this month’s newsletter, we’ll cover Mortgage News, Rental Rents, Chicago Home Trends, as well as Local Events and Happenings.
Happy October!
Happy Hour at The Middle Brow Bungalow
Mortgage news
Mortgage rates are now at 7.49% as of Oct. 5, the highest level it has been in 2 decades (The Mortgage Reports)
Predictions: mortgage rates are likely going to stay moderate between 7.0%-7.5%
Fannie Mae Introduces 5% Down Payment Option for Multifamily homes - a departure from the previous requirement of 15-25% down payments
Rental trends
Video: People are extending their leases and adding to the rental demand, says NAR’s Lawrence Yun (CNBC)
TLDW: With rising mortgage rates, one cause of supply issues is an increase in interest rates (10-12%) for home builder’s construction loans which has slowed the rate of apartments being built. Due to a restriction of supply combined with high interest rates, people are extending their leases for a longer period of time, which adds to the rental demand and strengthens rent increases, all of which add to inflation, according to NAR’s Lawrence Yun
Chicago Rental Market stats as of Oct 4, 2023 (Zillow)
*Chicago Zip codes include: 60623, 60629, 60639, 60617, 60649, 60625, 6032, 60634, 60608, 60618
Chicago Home trends (CAR)
August 2023 Market Snapshot for the City of Chicago:
Number of Properties sold in Aug 2023: 2,205 (-6.3% YoY)
Median Sales Price in Aug 2023: $330,500 (+4.9% YoY)
Average Days on Market in Aug 2023: 52 days (+8.3% increase YoY)
Inventory of Homes for Sale: 5,615 (-29.8% YoY)
Local Happenings
Events:
Support local artists at Handmade Market, Empty Bottle
Food & Drink:
Cider and Ale Festival at the Morton Arboretum
Voodoo Doughnut to open in Fulton Market before end of year