Chicago Real Estate Market
Every month the Chicago Association of Realtors releases Chicago housing data, both city-wide and neighborhood based. As any resident of the city will tell you, things feel very different from neighborhood to neighborhood as far as the bars, restaurants, shops, and cultures you may find, and the same is true from a market perspective. Every neighborhood is like its own sub-market that needs to be studied and understood.
That is why, every week, we sit down to discuss the latest data and make sense of it. Here are some of our thoughts and insights from our discussion of the October 2019 data.
This month we focused in on what is happening with real estate in Humboldt Park as the numbers look very interesting, how the low interest rates are affecting market activity, and what quality of deal are we finding on the market.
Should I buy or not with the current market conditions?
We know that rates continue to be extremely low, which makes the idea of buying attractive and financially sound. However, sellers also understand this concept, and it has been a sellers market for some time now. It’s interesting how the balance plays out. We believe that if you can find a deal that is underwritten for success it is a great time to buy, however the number of those on the table at the moment seem to be fairly low.
Are housing options on the market right now worse quality than usual?
There seem to be two things at play here: the available inventory is on the lower side, and what is out there are some of the less desirable products in terms of quality of the home in areas that are commanding relatively high prices. Essentially people are pricing sub-prime products on the market at the standard rate for a unit in that particular neighborhood market. Hoping to grab the going rate for a standard unit. This is obviously not always the case, but it seems to be a trend we are noticing!
What is going on with Humboldt Park real estate?
Taking a glance at the numbers for the city overall Humboldt Park definitely drew our eye. The number of listings is up nearly 60%, and the median sale price seems to have skyrocketed from 172k to 325k, both of which appear huge. Taking a closer look though, the number of actual closed sales is lower than prior year. This seems to line up with our thinking on why there is a lower quality of product in the market right now: sellers are eager to list at historically high market prices, especially in areas where the prices have taken off. But that doesn’t necessarily mean that more listings = more market activity. If you’ve been thinking about buying in Humboldt park, now is a great time, there’s been a big influx of listings on the market this month.
How do I find the “good” deals?
The average number of days on the market has decreased, which means things are selling faster. This is especially true for the “good” listings, often going under contract after just days on the market. So, we recommend working with a reputable lender early in the process and having your documentation in order before touring places. Waiting to begin getting your finances in order until you identify a property you like is a recipe for disappointment. It’s always better to tour knowing exactly what you can afford and ready to submit an offer, so that you have a higher chance of securing that option.