Unlocking the Secrets of Chicago Market Trends: 2024 Predictions

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Forget crystal balls, we've got data! Here at The Mike Zapart Group, we're excited to share our insights and predictions for the Chicago northwest suburbs housing market in 2024, based on real market trends and data.

Prices are Poised to Rise

Contrary to expectations, single-family home prices defied expectations in 2023, rising over 5%. With potentially stabilizing interest rates, anticipation is high for buyer influx and possible price increases in 2024.

Sellers Stay in Control

The seller's market continues! Driven by a scarcity of affordable listings, average listing prices climbed in 2023. This trend is expected to hold, with a potential price surge in late February, pushing list prices towards $480,000 by March.

The Competition Heats Up

Be prepared for fierce competition, especially for starter homes. The sold price to asking price ratio is expected to reach 99.5%, indicating sellers are getting close to their asking price. However, luxury home hunters might find bargains due to lower demand.

A Slow but Steady Sales Rebound

While sales dipped in 2023, a gradual rebound is anticipated, reaching around 1,500 homes sold in 2024. Although inventory remains challenging, particularly for affordable homes, the lower volume allows agents to dedicate more time to each client.

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A Glimmer of Hope for Inventory

While 2023 saw a significant drop in listings, a positive change might be on the horizon. If interest rates dip, expect an influx of higher-priced listings, potentially increasing options for buyers and boosting sales of starter homes. We predict around 2,100 new listings to hit the market in 2024.

Inventory Imbalance

The market currently faces an inventory imbalance, with a stark difference between price brackets. While the overall inventory sits at barely one month's worth, the lower price range faces a critical shortage, with only 0.7 months of options. Conversely, the higher-priced market offers a more comfortable 3.3 months of choices. This gap is expected to narrow by year-end, reaching a more balanced 1.8 months of inventory.

Showings on the Rise

With potentially lower interest rates, expect a surge in buyer activity. We predict showings to surpass 2022 levels, reaching 1,700 in 2024. Get ready to showcase your best open house smile!

Sellers Rejoice! This market favors sellers, with high demand and low supply. Expect an average of 12.13 showings per listing in 2024, especially in the early months. Spring could even see a frenzy of over 15 showings per listing. However, the market might normalize later in the year, with showings settling around 6-7. The first half of 2024 presents a golden opportunity for sellers.

Market Speed

Homes flew off the shelves in 2023, spending only 36 days on the market. While the first half of 2024 might see similar speed, expect homes to spend closer to 40 days on the market by election season. Sellers, act quickly! Buyers, be prepared to move fast and stay focused.

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Our 2024 Predictions at a Glance:

  • Sold prices: $475,000
  • List prices: $480,000
  • Sold Price to asking price ratio: 99.5%
  • Sold homes: 1,500
  • Listings: 2,100
  • Months of inventory: 1.8
  • Showings: 1,700
  • Spring showings: Over 15 per listing
  • End of year showings: About 7
  • Days on the market: 40

Thinking of Buying a Home in the Chicago area? With the market moving swiftly and demand exceeding supply, now could be the perfect time to act. The Mike Zapart Group can help you navigate the market and find: 

Check our YouTube video discussing the topic here!

The Mike Zapart Group is here to guide you through the ever-changing market. Contact us today to discuss your Chicago real estate needs!

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