After two years of rising home prices and homes selling at a lightning fast pace, some projections have 2017 bringing somewhat of a slowdown to the Chicago area real estate market. The good news for anybody looking to sell their home or condo in 2016, though, is that home prices throughout Chicago are expected to continue to climb, only at a relatively slower pace.
What could, and most likely will, bring a slowdown on the sales side of things are rising mortgage rates, which are now at the highest level we’ve seen since 2014. In addition, low inventory could also negatively impact the Chicago real estate market heading into next year, which on the flip side, could help keep the rental market red hot over the first half of 2017 and maybe even beyond.
As noted by University of Illinois professor and economist Dr. Geoffrey J. D. Hewings, the median price change for the Chicago area is projected to climb anywhere between 3.8 percent and 8.4 percent, which is slightly higher than home price projections for the state of Illinois, which are estimated to be somewhere between 2.1 percent and 6.9 percent.