Five predictions for our area’s real estate market in the coming year.
2023 is expected to be an interesting year. Here are five of my predictions for the Chicago real estate market next year:
1. The market won’t crash. I don’t believe we’ll see a repeat of 2008 because mortgage underwriting standards are tighter, the supply of homes is still relatively low, and homeowners are rich in equity.
2. Sales will slow down. I expect sales to decrease and days on market to increase, and we’ll likely see a minor pullback in pricing. Therefore, for sellers to be successful, it will be very important to price appropriately.
3. Buyer demand will stay strong. Buyers, you don’t have to sell your soul to the sellers to get a house. Expect a balanced market where there are opportunities for both buyers and sellers.
4. Mortgage rates will go down slightly. As the Federal Reserve tackles inflation, mortgage rates will drop. I don’t think they’ll be as low as what we saw in the past couple of years, but that’s a positive thing because this means we’ll have a sustainable housing market.
5. Each market will perform differently. Employers asking for more office time, easy access to public transportation, and many other factors will have an impact on how each market will perform next year.
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