Chicago Home Prices Appreciate Despite Limited Housing Inventory

chicago home prices appreciate despite housing inventory plymouth title guaranty corporation featured

With the United States continuing to witness record-setting inflation levels, Chicago home prices see massive appreciation. Of course, this market correction comes after a two-year period of record-low mortgage rates and a lackluster 2020 real estate year. Hot off the trail of 2021’s real estate market rebound, Chicagoland real estate affordability grows farther out of reach for first-time buyers.

Chicago Home Prices Cap Off 2021 with Double-Digit Gains

In a banner year for real estate, Chicago home prices achieved double-digit gains. As a matter of fact, the Chicago metropolitan area generated a nearly 12% year-over-year growth in median home sale prices.

While many real estate experts anticipated a slowdown in 2022, home prices proceed to climb. From November’s 11.7% annual increase home prices increased to 12.2% in January. In doing so, Chicagoland median home prices soared to their highest growth point in four months.

Furthermore, Chicago-area condominiums and townhomes similarly witnessed growth, albeit to a lesser extent. Resembling single-family properties, these forms of real estate also achieved their highest level in four months, a 3.9% increase.

Rising Chicago Home Prices Call Affordability into Question

With Chicago home prices on the rise, housing affordability faces further challenges. For instance, Chicago’s Uptown neighborhood was once considered affordable for first-time home buyers. As of 2022, Uptown joined Chicago’s million-dollar housing market.

But home prices aside, the Chicagoland offers additional hurdles, especially for first-time home buyers. While mortgage rates danced around record-lows throughout the midpoint of the coronavirus pandemic, they’ve now exceeded 4% once more. Because of this, mortgage rates rejoined mid-2019 numbers.

Beyond pricing, the United States lacks housing inventory. Sitting at just a 1.6-month supply nationally, there are a measly 860,000 homes available for sale across the country. With limited inventory, the real estate market remains firmly in the hands of homeowners considering a sale.

Chicagoland Real Estate Heading into Spring 2022

Typically, spring represents the best time to sell a home. While May previously held the title of “best month to sell”, March took that spot in 2019. As Chicago home prices rise heading into spring 2022, homeowners may be able to easily secure a profit on their property. On the other hand, home buyers might be in for a little bit of a fight.

For questions regarding Chicago home prices, contact the title insurance and escrow specialists at Plymouth Title Guaranty Corporation.