It’s a seller’s market in Chicago

Home prices in the Chicago metro area rose steadily over the last year or so. Gains are also expected in 2017.. This is based on several forecasts and predictions for the Chicago real estate market in 2017.

Median home prices and sales activity both increased in June. According to the Illinois Association of Realtors, 13,620 homes were sold in the Chicago metro area this June, which is an increase of 2.1% from the same time last year.

Meanwhile, the median price paid for a home in the Chicago area rose 4.6% in June, compared to last year. The median sales price rose to $242,500 in June 2016. Again, that’s for the entire metro area.

Currently, the Chicago housing market favors sellers over buyers because there is a small pool of properties available for sale, (hence, a seller’s market). Housing supply is struggling to keep pace with buyer demand.

These trends no doubt fuel the Chicago housing market predictions for 2017, some of which call for additional price gains over the next year or so.

Mortgage Rates Rising in 2017

Mortgage rates are also expected to rise in 2017. That’s the latest forecast offered by the economists at Freddie Mac, the government-controlled buyer of mortgage loans. Here is their forecast for 30-year loan rates between now and the end of 2017. These are the average rates they expect to see during each quarter.

  • Q2, 2016: 3.9%
  • Q3, 2016: 4.2%
  • Q4, 2016: 4.4%
  • Q1, 2017: 4.5%
  • Q2, 2017: 4.7%
  • Q3, 2017: 4.9%
  • Q4, 2017: 5.1%

But don’t bank on these rates, it’s basically an educated guess. The bottom line is that rates are expected to rise gradually over the coming months.

Below I have listed the average listing price from the week ending January 18, 2017, from Trulia.com, for some popular Chicago neighborhoods:

Greektown:             $3,280,000

Lincoln Park:          $1,165,799

Near North Side:    $980,084

Roscoe Village:        $729,357

Wicker Park:           $656,380

Lakeview:                $629,072

Sauganash:              $616,851

Near South Side:    $483,060

Edison Park:           $425,057

Bridgeport:              $385,106

Pilsen:                      $379,349

Norwood Park:       $338,123

Jefferson Park:       $335,875

Portage Park:         $312,814

Edgewater:              $304,752

Beverly:                   $303,138

Canaryville:             $256,362

Garfield Ridge:       $229,205

Mt. Greenwood:     $216,095

Scottsdale:               $200,182

O’Hare:                    $190,295

Rogers Park:           $178,368

West Lawn:             $174,079

Austin:                     $98,299

Englewood:              $29,062

Have a great month, and stay safe out there!