What does 2019 Hold For The Chicago Real Estate Market?
As I start to write this, I think of the first thing I read in my college statistics class way back when...With forecasting, you are always wrong-it's just a matter of degrees. That said, there is a significant amount of data that suggests, that 2019 will be a "subdued" market. Of course, it always depends on the area of the market we're talking about. For example, higher end properties usually take longer to sell than the starter and mid-level markets and that likely will not change. However, with open floor plans being all the rage, it seems the older high end properties are taking longer to clear the market and are going for less than asking price meaning the higher end of the market will see longer market times and lower sale-to-list ratios. On the other hand, for those looking for starter homes, to the extent you can find inventory, mortgage rates have actually dropped in recent weeks, and if the bond markets are any indication (as they are supposed to be) mortgage rates probably won't go back up again and more likely will drop a bit further. This would suggest a favorable market in the starter home market. Finally, while the US has been doing better than the rest of the world, it cannot be denied there are concerning indicators throughout the global economy. So, while it probably won't be a down-year per-se, it does not seem that 2019 will end of being a record breaker either.