Chicago Suburbs Real Estate Market 2024: A Comprehensive Analysis and Predictions
As we step into 2024, the real estate market in the Chicago suburbs is showing signs of becoming more competitive. With anticipated decreases in mortgage rates and increases in home sales, experts predict an active year for the housing market in the Chicago suburbs. This article will delve into the key trends, predictions, and investment opportunities in the Chicago suburbs real estate market for 2024.
1. Sales Trends in 2024
According to data from the National Association of REALTORS® Chief Economist Lawrence Yun, a 19% rise in new-home sales and a 13% increase in existing-home sales are expected in 2024. However, as of November 2023, sales of detached suburban homes were still experiencing an 11.9% year-over-year decrease, with 2,026 single-family homes sold.
1.1. Increased Demand for Attached Homes
Despite the decrease in detached homes sales, the demand for attached homes has been on the rise. In November 2023, the number of attached homes under contract in Chicago suburbs increased by 10.8% compared to the previous year, totaling 989 contracts.
1.2. Rise in Home Prices
Concurrently, prices increased by 9.8% to reach $325,000. This upward trend in prices indicates a stronger market in 2024 and emphasizes the significance of this for first-time homebuyers looking to establish themselves and build equity.
2. Market Hotness Predictions for 2024
The Chicago real estate market is anticipated to become more active in 2024, with the Federal Reserve expected to lower mortgage rates. This news will be especially welcome to prospective buyers, particularly millennials, who have faced challenges such as affordability and finding suitable properties.
2.1. Hotness Score
In February 2024, the hotness score for the Chicago suburbs real estate market was reported as 89.2, with a supply score of 95.57 and a demand score of 82.79.
2.2. Median Days on Market
The median days on the market was reported as 34.5, marking a decrease of 16.8 days compared to the previous month.
3. Inventory Trends in 2024
Inventory levels in the Chicago suburbs real estate market have been decreasing, posing a challenge for potential buyers. In February 2024, the median listing price was $479,610, marking a 1.30% increase from the previous month.
3.1. Active Listing Count
The active listing count in February 2024 was 664, marking a decrease of 3.56% compared to the previous month.
Cook County active listing count in the past 5 years.
3.2. New Listing Count
However, the new listing count for the same month was 788, representing a significant increase of 53.31%.
Cook County sold listings usually bottom during Jan/Feb and can be expected to rise in the coming months!
4. Contacting a Chicago Real Estate Agent
If you're considering entering the Chicago suburbs real estate market in 2024, whether as a buyer or seller, it's vital to get in touch with a professional real estate agent. An agent can provide you with personalized advice and guidance tailored to your specific needs and financial situation.
5. Investment Opportunities in the Chicago Suburbs
The Chicago suburbs real estate market presents promising investment opportunities. The market's resilience is evident in the positive 1-year forecast of +3.1% in home values, suggesting a healthy and sustainable growth pattern.
5.1. Prospects for Real Estate Investors
Real estate investors can find lucrative opportunities in the Chicago suburbs. Many older properties in desirable neighborhoods are prime candidates for rehabilitation and resale.
5.2. Rental Property Market Size and Growth
The size and growth of the Chicago rental property market are promising for investors. The diverse neighborhoods and housing options cater to a wide range of tenant preferences.
6. Is Chicago a Buyer's or Seller's Market?
The current state of the Chicago suburbs real estate market suggests a balanced scenario, offering advantages to both buyers and sellers. The 1-year market forecast of +3.1% in home values indicates a positive trajectory, attracting sellers looking to capitalize on potential appreciation.
7. Are Home Prices Dropping in Chicago?
As of the latest data available, there is no evidence to suggest a decline in home prices in the Chicago suburbs3. The average home value has experienced a 5.9% increase over the past year, indicating a trend of appreciation rather than depreciation.
Cook County median sold price of residential real estate.
As you can see from the image above, cook county prices are gradually rising each year.
8. Will the Chicago Housing Market Crash?
There is no indication of an impending housing market crash in the Chicago suburbs. The market's resilience is evident in the positive 1-year forecast of +3.1% in home values, suggesting a healthy and sustainable growth pattern.
9. Is Now a Good Time to Buy a House in Chicago?
Considering the current state of the housing market in the Chicago suburbs, it can be deemed a favorable time for prospective buyers. The average home value of $300,906 presents a reasonable entry point, especially with the forecasted 3.1% increase in values over the next year.
10. Is Chicago a Good Place for Real Estate Investment?
Chicago's diverse economy, cultural attractions, and public transportation make it an attractive destination for real estate investors. Furthermore, the fix and flip opportunities, the size and growth of the rental market, and other related factors provide a solid foundation for potential returns on investment.
11. Highest Appreciating Chicago Neighborhoods
Certain neighborhoods in Chicago have witnessed significant changes and appreciation in property values since 2000. These areas offer various amenities, community vibes, and urban conveniences, making them attractive options for both residents and real estate investors.
12. Conclusion
Navigating the Chicago suburbs real estate market in 2024 requires a deep understanding of the current trends and predictions. Whether you're a homebuyer, a homeowner looking to sell, or a real estate investor, having a grasp of the market dynamics can help you make informed decisions and achieve your real estate goals.
Disclaimer: This article is intended for informational purposes only and should not be construed as professional financial advice. Consult with a real estate professional or financial advisor before making any real estate investments.
Locations Inc. is a professional real estate brokerage helping individuals navigate the intricate Chicago suburbs real estate market. Whether you're looking to buy a home, sell a property, or make a real estate investment, we're here to provide guidance and support. To learn more about our services or to schedule a consultation, please contact us today.
