It’s a busy world we are living in, and just like the real estate market, our lives move quickly. We’ve made it easy for you and summed up 5 fast facts you should know about our current real estate market here in Chicago:
1) Interest rates are still low, but slowly climbing: current rate today is 4.65% for a 30-year fixed mortgage rate. For an example on how interest rate affects buyers, take a $300,000 mortgage. If the rate were to change from 4% to 5%, the difference in monthly payment over a 30-year term would be $358 a month.
2) It’s still a great time to SELL because prices are still up, when comparing to the last previous years. It’s also a great time to BUY still because interest rates are still relatively low, and more inventory is slowly coming to market in the last couple of months.
3) What you need to know about the rumor that the market is “headed for a crash”… yes, we get asked about this a lot. Statistically, things look to be slowing down in terms of properties taking slightly long to sell and also more properties hitting the market recently. There are about 2% of people underwater on their mortgages (meaning they owe more than their home is worth), which is higher than the national average. However, on the other hand, we have many neighborhoods thriving in the investment market, property values are at an all-time high for the last several years, and job growth continues to allow newcomers to our city who of course will need real estate to live in.
4) The current median home price of listed properties in Chicago is about $325k; median rent is $1,750 (rents are up almost 3% compared to last year).
5) Smaller units are still tight on inventory especially: 1BR and studio units are more scarce than 2BR+, due to the great investment potential most likely of the high rent prices (instead of selling when they upgrade, many homeowners of 1BR and studios are choosing to hold on to those properties as investments instead of selling them to buy their next place).