This guide covers the Chicago housing market forecast for homebuyers in Chicago and surrounding suburbs. It seems like the Housing Market has fully recovered after years of sluggish sales. Statistics indicate that Chicago Housing Market values have increased the most in almost seven years. Chicagoland Housing Market has been the best since the Great Recession Of 2008. Dale Elenteny, a lifelong Chicagoan, said the following:
Chicago is the most beautiful and diverse city in the United States. With the best schools and universities, the four seasons, and the Chicago lakefront, there is no other city in the nation like Chicago. However, the politicians and the Chicago Democrat Machine is ruining the city. Businesses and Chicagoans are fleeing the Windy City in droves.
Unfortunately, the Chicago Area Housing Market is recovering slower than other geographical parts of the United States. The housing market in the Chicagoland area prices have risen by almost 9.8%. Like many parts of the country, the Chicago Area Housing Market has seen a slowdown in purchases, and the market prices have stabilized since August 2017. Chicago Housing Market had lost the momentum that was triggered earlier this year when homes were selling above list prices. There were multiple offers on the same properties when mortgage rates were in the lower to mid 3.0% range.
Condominiums Popular In Chicagoland Area
Condominiums are more popular in Chicago than in most other cities in the United States. Condominium prices rose nearly 14% in October compared to a year ago, which caught up to market values that were similar back in 2003. Nationwide, residential home values were up north of 13% in October over last year’s numbers. However, the cost of high taxes and high maintenance HOA fees are becoming a problem with condo ownership. This holds especially true for seniors with fixed incomes. Chicago remains the highest-taxed city in the nation.
Chicago Housing Market Recovery
The Housing Market has substantially recovered since the real estate and financial meltdown of 2008 due to the ease of mortgage lending and the historically low mortgage rates. Since mortgage rates jumped over one full percentage point in mid-year 2017, housing sales and Chicago area housing market prices have drastically reduced.
Foreclosure rates have never been as low since the 2008 housing and banking collapse, and things are looking like the Chicago area housing market has stabilized. Many new mortgage rules and regulations went into effect in the past few years.
New regulations included higher loan limits for FHA loans and Increasing debt-to-income ratios on conventional mortgage loans to a 50% debt-to-income ratio cap. This holds true no matter how much down payment a mortgage loan borrower puts down. New QM, Qualified Mortgage Rules, will make mortgage lending tougher to qualify. Many lenders will most likely implement more overlays.
Has The Chicago Housing Market Stabilized?
It is difficult to say whether the Chicago Area Housing Market has stabilized. Chicago remains the highest-taxed city in the nation. Under the leadership of rookie freshman mayor Lori Lightfoot, the city is not only the highest-taxed city in the nation, but the city is on the brink of bankruptcy. John Strange of Gustan Cho Associates is an expert in the Chicago Housing Market and a critic of Lori Lightfoot and Chicago Democrats. Here is what John says about Chicago:
The Chicago housing market will continue to suffer due to poor leadership of Democrats. The city faces huge budget deficits, political unrest, and turmoil among city council members. Lori Lightfoot is a far-left liberal with ideas of defunding the police and lost with finding solutions to dealing with the high crime and murder rates in the city’s history.
Chicago’s property taxes remain the highest of any major metropolitan city in the nation. There is no property tax cap in Chicago. Chicago’s high property taxes are stunting home value appreciation due to the drastic rise in mortgage rates in mid-2017. New FHA mortgage regulations, housing sales, and prices have substantially slowed down suddenly.
Negatives of Buying a House in Chicago
There seems to be no end to new mortgage regulations. 2024 will be a sure test of the effects of new mortgage regulations on housing sales and housing prices—the uncertainty with the appointment of a new Federal Reserve Board Chairman. Whether or not the Feds will cut back on buying back mortgage securities and bonds will greatly affect mortgage rates. This will affect the Chicago Housing Market and the real estate market in this country. Stay tuned, we will keep you posted. Ronda Butts says the following about the Chicago Housing Market forecast:
Surprisingly, the Chicago housing market remains strong despite high taxes, incompetent politicians, surging crime rates throughout the city, riots, a wokeness mentality, a deteriorating public school system, and businesses moving out of Illinois by the thousands.
Many Americans are still in love with the Chicago housing market. Chicago housing market forecast is expected to remain strong, with homes still in demand. The Chicago housing market has more buyers versus inventory of homes. Homebuyers who need to qualify for mortgage loans in Chicago and its suburbs with a mortgage company licensed in multiple states with no mortgage lender overlays on government, and conventional loans can contact us at Gustan Cho Associates at 800-900-8569 or text for a faster response. Or email us at gcho@gustancho.com. We are available evenings, weekends, and holidays seven days a week.
