With interest rates maintaining historic lows, the Chicago area housing prices are seeing sudden double-digit growth after years of holding steady. According to recent reports from MRED, the week of October 12, 2020 saw the ninth consecutive week of median home price increase—up 10% or more from the same time last year. The report also showed that in recent weeks, the median price was more than 15% from the prior year.
Coming on the heels of nearly 4 years of flat home prices—which rarely rose by more than 5% from the previous year—this spike is indicative of the high demand for homes across the Chicagoland area. Real estate professionals are noting this increase is likely due to the country’s continued low interest rates, which has allowed qualified buyers a sense of security when presenting offers above asking price in multi-offer situations.
This price hike has been on an upswing since August 2020 and continues to see that trajectory hold. Likely fueled by first-time homebuyers eager to stake a claim in the area’s booming market, many Cook County suburbs are seeing increased single-family home prices. First-time buyers are also fueling pricing spikes in Chicago’s condo market, with increased demand throughout neighborhoods like Lakeview, Edgewater, and Portage Park. One thing real estate professionals can agree on right now—the market is rife with opportunity.Source: MRED, Crain’s Chicago Business