Your Housing Market Forecast for 2021 Get your fireworks ready because the housing market for 2021 could be a blast! As Baird & Warner’s senior vice president of strategic growth Nina Fotopolous recently put it to Chicago Agent Magazine: “I believe we will see the continuance of a robust market. In Illinois, home sales have increased 29 percent in November 2020 when compared to the previous November. Have any more questions? For the Chicago area, the forecast shows very slight dips on both the market attributes it covers, predicting the number of sales will … More than many other metro regions, Chicagoland is truly defined by its unique communities, both in the suburbs and within the city itself. CBRE Research predicts U.S. multifamily investment volume will reach about $148 billion next year, lower than 2019’s record level of $191 billion but a 33% gain over the 2020 estimate of $111 billion. Our real estate experts can help field your questions and give you the guidance you need to succeed, backed by our unparalleled breadth of experience, market-leading tools, and commitment to always being available to you. There will be a lot of factors encouraging buyers to get active in the year ahead. Chicago’s downtown markets have been in a slump for some time now, with inventory piling up, prices falling, and demand at a standstill. In fact, words that were often used to describe the Chicago real estate market heading into 2020 were “steady,” “boring,” and “same old.”. So, what can we expect now that vaccines are being delivered, a new federal administration prepares to head to the White House, and homebuyers and sellers are starting to make their lists of New Years’ resolutions? Housing Forecast January 2021 2 Housing Price Forecast: Illinois and Chicago PMSA, January 2021 The Housing Market In December, median prices and sales experienced a positive annual change in both Illinois and the Chicago PMSA. But will the presidential changing of the guard impact the market this year? The existing home sales will increase by 7 percent in the year 2021. Inventory is always one of the biggest market factors to watch for Chicago — and that will continue to hold true in 2021. Nationwide, the National Association of REALTORS (NAR) projects a 6% increase in housing prices in 2021, according to data compiled by Keeping Current Matters; Fannie Mae and Freddie Mac project a more modest nationwide price growth of about 2-3%. Let's connect to explore how 2021 could be the year to make your next move. Both homebuyers and sellers have a lot to gain during their transactions despite the election and pandemic. For all these matters and more, you’ve come to the right place! Housing market predictions for 2021 review. Historically speaking, the Chicago market is said to have fairly tight or limited inventory. . Investopedia calls it “tech-oriented house-hunting,” and they couldn’t be more right. The Common Buyer Mistakes That Could Keep You From Your 'Dream' Home. Many economists and so-called experts are dumbfounded by how strong the housing market has been in 2020. A forecast by Haus shows home prices dropping between 0.5 and 2.5 percent from October 2020 to July 2021. While industry experts always anticipate, a little bit of turbulence in presidential election years, , nobody saw the COVID-19 pandemic coming. In a pandemic world, expect differences in how business is done. Many market experts are predicting that more inventory will come to the market in 2021, with Baird & Warner’s Laura Ellis expecting a “loosening” for several reasons. As Baird & Warner Lincoln Park’s managing broker David Bailey recently put it in his 2021 market forecast: “People have had a lot of time to focus on what they don’t like in their current spaces, and start thinking up wish lists for their future homes. However, buyers need inventory to choose from — and with such low rates, some homeowners may be more tempted to refinance than resell. Chicago Housing Labeled as ‘Buyer-Friendly’ Last week, we published a report about the top 10 “buyer-friendly” real estate markets across the U.S. Fair Housing and Equal Plus, home sales had risen 12 percent in the third quarter of 2020 — the biggest jump in seven years. Dodge forecasts just a 3 percent increase in Chicago-area construction starts for 2021. Experts forecast a year of continued strength in the housing market. This situation is really one for the history books, but what did that mean for our housing market here in Chicago? The Chicago real estate outlook gives us an idea of what we can expect this year. So, despite election concerns, the consensus seems to be that the housing market will keep growing. They want to view properties on their mobile devices, text message agents, and engage in all types of multimedia during their home buying journey. Realtor.com ranks the Chicago metro area 42nd on its list of the “Top Housing Markets” for 2021 — well above 2020, when the Chicago market came in around 100th place. Why? In fact, words that were often used to describe the Chicago real estate market heading, At the same time, these last several months have reaffirmed the importance of having a place to call home. Ready to buy or sell a home, but not sure where to start? On an annual basis, rent growth is positive albeit muted while occupancy rates post slight declines before ticking up in 2022. The Best Places to Invest in Real Estate in New York for 2021. While the early months of the COVID pandemic brought a lot of uncertainty and some hasty changes, real estate professionals and their clients adapted swiftly here in the Chicago area — and activity remained incredibly robust throughout summer, fall, and even winter as a result. According to current data of median home prices: Chicago's real estate prices and its market … This is often a factor that encourages buyers to enter the market and spurs activity. I will do my best to make the process as simple and stress-less as possible. senior economist George Riatu recently put it to CNN: For instance? expected to carry on long after the pandemic. This time to reflect and adapt will reshape what buyers are looking for, long after the pandemic has finally come to an end. Now is the time to buy if you’re on the fence. Again, lower interest rates, a large population of interested homebuyers, and the realization that owning a home might be the key to work-life balance in this pandemic-impacted environment are the key factors. As realtor.com senior economist George Riatu recently put it to CNN: “[Low interest rates] have helped homeowners refinance and save money, while simultaneously making it easier for first-time buyers to afford a home… However, double-digit price gains over the past three months have been chipping away at the benefit that low mortgage rates have brought.". Interest rates have been low for some time now — and hit a record low in November of 2020. Housing Market Influencers: the Election & Pandemic. With steadily improving market conditions, multifamily investment volume is expected to increase in 2021. “Analyzing the individual economic forces that have driven the recovery of market potential for existing home sales can provide insight into how the housing market may fare in 2021.” Currently, potential existing-home sales is 810,750 million, or 11.9% below the pre-recession peak of market potential, which occurred in April 2006. However, buyers need inventory to choose from — and with such low rates, some homeowners may be more tempted to refinance than resell. Who could have seen 2020 coming? can expect higher competition and higher prices. 3.5% gain in prices year to year in the Chicago metro area, its list of the “Top Housing Markets” for 2021. Due to local regulations regarding social distancing, you may be asked to leave your home for a period of time while masked prospective buyers view your home. These 10 real estate plays are the best ways to invest in real estate right now. Drop us a line today to get the conversation started. 2. Mortgage rates are holding firm even as Treasury yields continue to rise. This ARTICLE Is About 2021 Housing Market Forecast Expected To Be Best In 15 Years. Pandemic – While the pandemic spread through the US, the market remained strong. With more people working from home and freed from the need to commute every day, many will feel inspired to look outside of the city for their next homes — and, indeed, local experts have seen a surge in homes selling in the North Shore neighborhoods, as well as suburban markets like Lake Forest and Barrington, according to. Several of my clients and I navigated 2020’s challenges, and I’m looking forward to bringing that working knowledge with me into the new year. As I stated in the previous tip, you can expect online marketing to go a long way in attracting buyers. The market is a 2 … In 2021, we have so much to look forward to and be grateful for. Ready to set your real estate goals in motion? Most major institutions are anticipating nationwide sales growth around 7%. As Crain’s puts it: "People who were reluctant to put their homes on the market because they worried about where the pandemic and the drop in the economy would lead may have seen enough friends and neighbors do well in the housing market to decide it's their turn. Most major institutions are anticipating nationwide sales growth around 7%, according to Keeping Current Matters — with the NAR forecasting a 7.06% increase in sales, the Mortgage Bankers Association (MBA) projecting a 7.17% increase, and Fannie and Freddie coming in closer to 6% for the year. — and that will continue to hold true in 2021. But it does appear to be headed in that direction. 1) Home Prices Predictions In 2021, experts are anticipating only a modest increase in mortgage rates. Chicago housing market forecast Until recently, Chicago market trends were red hot. Realtor.com, for instance, projects that the Chicago metro area will see an 8.3% increase in year-over-year sales growth for 2021 — beating their projection for overall nationwide sales growth, which is 7%. This year, allow me to be part of your home buying and home selling journeys. Now that we know what the experts think and how the election and pandemic will influence (or not) the current housing market, how can home buyers and sellers prepare themselves? Nationwide, the National Association of REALTORS (NAR) projects a 6% increase in housing prices in 2021, according to data compiled by. What real estate market conditions are you most interested in keeping an eye on in the year ahead? In 2021, we have so much to look forward to and be grateful for. For instance, the National Association of Realtors reported that home sales in the US surged in September 2020 to levels unseen in 14 years. Spring and summer home-buying seasons in 2021 will be strong. 2021 Chicago Real Estate Market Trends: How to Plan Ahead. For buyers, you’ll continue to see low mortgage rates and more homes for sale due to high homebuilder confidence. What may be a bit different is exactly what those factors are — and how they will change what buyers are looking for in the places they hope to call home. What's the reason you're reporting this blog entry? Whether you’re looking to buy or sell in 2020, Real Group RE is here and ready to help make things easier. And people who were underwater on the mortgage might calculate that recent price increases have brought them up to a point where they can afford to sell.". This thorough report on the US rental housing market for 2020 and 2021 offers stats, insights, and trends happening as we head toward 2021. In the long-term, lower mortgage rates save you money and lower your monthly costs. With more people working from home and freed from the need to commute every day, many will feel inspired to look outside of the city for their next homes — and, indeed, local experts have seen a surge in homes selling in the North Shore neighborhoods, as well as suburban markets like Lake Forest and Barrington, according to Crain’s. The housing market in Chicago and nationwide is strong. Here are the latest trends and predictions for the Chicago real estate market through 2019 and beyond. What are the Current Market Conditions for Avondale? Other housing market predictions for 2021. Take advantage of low mortgage rates before they go up. What are the Current Market Conditions for North Center? Generally speaking, when interest rates are lower, buyers’ purchasing power is higher. The Chicago real estate outlook gives us an idea of what we can expect this year. can help field your questions and give you the guidance you need to succeed, backed by our unparalleled breadth of experience, market-leading tools, and commitment to always being available to you. Disclaimer: ActiveRain, Inc. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. This growth continues despite high unemployment and shutdown businesses. In 2021, we have so much to look forward to and be grateful for. National Association of REALTORS® Macro Forecast: –Real GDP grows 4.0% in 2021 –Nonfarm payroll employment grows 3.0% in 2021 –Unemployment improves to 6.2% in 2021 realtor.com® 2021 Housing Forecast: –Existing home prices appreciate 5.7% –Existing home sales up 7.0% –Single-family home starts up 9% –Mortgage rate increases to 3.2% Opportunity, Real Estate Agent with RE/MAX Premier Properties, Joe Manausa Real Estate - Tallahassee, FL, Real Estate with Terri Buseman - Chicago Realtor, everaging technologies such as virtual home tours, Chicagoland and Northern Illinois Real Estate, Prepare Your Home for the Winter in Pandemic Year, The Market is Strong: Selling & Buying Real Estate During COVID-19, Home is Your Sanctuary – Especially in Uncertain Times. especially as the number of Millennial and Gen Z buyers on the market continues to grow. The rise of millennials will push the housing demand up. 2. While industry experts always anticipate a little bit of turbulence in presidential election years, nobody saw the COVID-19 pandemic coming. 1. This is going to be particularly important to factor in when you consider another major influence on housing market activity here in Chicago and around the country —, Interest rates have been low for some time now —. Here’s what the experts think: Election – The housing market is one economic area where there is a thriving business with the numbers to back it up. People in their late 20s and 30s have certain expectations when they shop. But recently, a number of housing and economic experts have issued their real estate market forecasts for the US. Related: Will the 2021 US Housing Market Be a Buyer’s Market or a Seller’s Market? Here’s a look at what we can expect in the Chicago real estate market for 2021: Most experts agree that 2021 will see a continued climb in home prices, both here in Chicago and across the county. For instance? As we often say, it’s important to remember that the Chicago metro area is not a monolith. Thank you for sharing. This is often a factor that encourages buyers to enter the market and spurs activity. Multiple Illinois cities are expected to take a hit to their housing markets between now and the first quarter of 2021, including the state capital, Springfield. Locally, Baird & Warner’s president of residential sales Laura Ellis recently predicted prices to fall right in the middle of this range, telling Crain’s that she anticipates a price growth of about 3-4% in 2021; the economists and data scientists at realtor.com, similarly, are expecting a 3.5% gain in prices year to year in the Chicago metro area. December 22, 2020 ... 1920s English Cotswold-Style Home Gets Refreshed for Chicago-Area Family of Eight. Many market experts are predicting that more inventory will come to the market in 2021, with Baird & Warner’s Laura Ellis expecting a “loosening” for several reasons. At the same time, in all markets, buyers are going to have new wants and needs. Drop us a line today to get the conversation started. Realtor.com forecasts the rate will be up to 3.4% by the end of the year. So, when you find a property you like, put your offer in quickly and expect a fast pace due to other interested buyers. Did your city make the cut? US home sales totaled 5.64 million in 2020 (+5.6% from … The seasonality of real estate has been leveling and COVID-19 has fast-tracked this trend… Add pent up demand, homes which no longer suit the needs of the newly defined COVID-19 lifestyle combined with low interest rates, and we’ll have a winning 2021.”. Boston, Chicago, New York and San Francisco have significant dependence on group and business travel and thus will suffer lagging performance until a successful vaccine is found. Housing Market Forecast 2021 NAR has reported the year over year sales results and 2020 had impressive numbers, setting the stage for what could be a record spring housing market. Despite having many attractions history buffs will love, Springfield is expected to see a negative-1.0% effect on the housing market. One big factor will be the shift to remote work, which is expected to carry on long after the pandemic. © 2021 ActiveRain, Inc. All Rights Reserved As we mentioned earlier, 2020 was a year when people spent more time at home than ever before — and we are not alone in predicting that this will encourage people to double down on achieving their real estate goals in 2021! Despite the coronavirus outbreak hitting the nation in February 2020, the housing market finished off the year as one the best in over a decade We all experienced a pandemic during an election year. Ready to set your real estate goals in motion? But it is worth keeping an eye on where people choose to move in the coming months and years, and what home features surge in popularity — especially as the number of Millennial and Gen Z buyers on the market continues to grow. In this article, we break down these predictions for real estate investors to understand what to expect through the end of 2020 and into 2021. It’s almost impossible to make reliable housing market predictions for 2021. What Are the Current Real Estate Market Conditions for Portage Park? These are great inputs! This is going to be particularly important to factor in when you consider another major influence on housing market activity here in Chicago and around the country — mortgage interest rates. Now, we do not necessarily expect a flight out of the city just yet. 14,835 houses were sold in Illinois, changing by 2.1% from a month ago and 28.7% from a year ago. Related: The Future of Real Estate Investing After the Pandemic. There are always a variety of “push” and “pull” factors that encourage people to enter the housing market as a buyer. While rapid-fire negotiations can be nerve-racking, they are sometimes needed to end up with the home. have suggested that buyers are going to put a priority on outdoor spaces, separate offices, smart home technology, and larger kitchens — anything that can make their time at home more peaceful, quiet, and calming. Millennials are the driving demographic here. It’s all about managing safety to the level that is comfortable for both buyers and sellers. In 2021, experts are anticipating only a modest increase in mortgage rates. The last year was an unusual and unpredictable one in the real estate world. Looking at Chicago real estate market trends, buyers and sellers will each benefit this year. Who could have seen 2020 coming? Well, while we had to change how we did business by leveraging technologies such as virtual home tours to attract buyers, the market remained strong. Work with the Best, Talk to Terri Buseman – Your Chicago Realtor: 1-312-208-5166, This article was first published on terribuseman website on January 09, 2021. We’ve all spent more time than ever thinking about what we like and dislike about our spaces, while adjusting to a “new normal” of remote work and schooling. There will be a lot of factors encouraging buyers to get active in the year ahead. Prepare for Millennial and Gen-Z buyers by marketing your home in 2021. , and we expect home prices to increase — while buyers face more competition over the homes that are available. Before we dig more deeply into these optimistic marketing trends and how to plan ahead, let’s talk about two housing market influencers on everyone’s mind: the election and the pandemic. Market Conditions in Wicker Park, Bucktown, Noble Square. — with the NAR forecasting a 7.06% increase in sales, the Mortgage Bankers Association (MBA) projecting a 7.17% increase, and Fannie and Freddie coming in closer to 6% for the year. Housing Market Prediction 2021: further 5% growth in sales and a 20% growth in prices by end of 2021. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them Contact me today to get started. According to economists, we can expect home sales to grow, prices for homes to rise and buyer demand to remain high due to the influx of Millennial and Gen Z buyers (we’ll talk more about that later). “The 2021 housing market will be much more normal than the wild swings we saw in 2020,” said realtor.com chief economist, Danielle Hale. This time to reflect and adapt will. Buyers who are interested in living in a River North condo can capitalize on current market conditions and get more “bang for their buck;” on the flip side, buyers more interested in finding a detached single-family home in Lincoln Square or North Center can expect higher competition and higher prices. Find IL real estate agents At the same time, these last several months have reaffirmed the importance of having a place to call home. You can also expect communication through email and text messaging to avoid face-to-face meetings. Forecasts for apartment fundamentals for predominantly institutional-grade properties indicate a bottoming of the market in late 2020 and into 2021. There is strength and resilience in the real estate market. Chicago Property Market Information Recommendations by the previous and the upcoming 36 months: buy or sell a home in Chicago? Redfin’s 2021 Housing Market Predictions: 14.5 Million Americans Will Move Out of Town, Fueling 10% Sales Growth December 15, 2020 December 14, 2020 December 15, 2020 December 14, 2020 by Daryl Fairweather ; Fannie Mae and Freddie Mac project a more modest nationwide price growth of about 2-3%. But it is worth keeping an eye on where people choose to move in the coming months and years, and what home features surge in popularity —. That will be no different in 2021. However, the surrounding neighborhoods of the city — from Bronzeville to Lincoln Park to Logan Square — have seen tightening inventory, higher sales prices, and low market time. Fannie Mae expects mortgage rates to hover around 2.8%, while the MBA anticipates that rates will remain around 3-3.3%. make an informed decision when buying or selling a house. See the Chicago (Illinois State, Cook County) property price forecasts, and buy/sell analysis based on the Housing Market and Property Investment report below. The housing market in Chicago and nationwide is strong. The Covid 19 shutdowns have impacted the rental housing market, yet prices have risen and look to rise further in the face of ongoing rental housing shortages, and a housing market that may cool. reshape what buyers are looking for, long after the pandemic has finally come to an end. Historically speaking, the Chicago market is said to have fairly tight or limited inventory. 2020 was a singular year, one that will always be remembered in terms of social distancing, face masks, and Zoom calls. Top Twenty Chicago Neighborhood Elementary Schools. This is all critical to factor in, whether you are planning on buying or selling a home in 2021! Here’s my advice: 1. Both homebuyers and sellers have a lot to gain during their transactions despite the election and pandemic. Generally speaking, when interest rates are lower, buyers’ purchasing power is higher.