Recent data shows that the residential real estate market in Chicago is growing at a much slower pace than are the markets in other large metropolitan areas in the U.S., presenting added considerations for people planning to sell their homes and potential opportunities for prospective buyers. The price of homes across the country rose at different rates with Chicago’s coming in last out of the 20 metropolitan areas surveyed for May sales. Sellers should consider the potential price increases when they are trying to decide when to list their homes, and the current slow growth may mean that it is a good time for prospective buyers to get into the market. A Chicago real estate lawyer may advise both buyers and sellers about the timing of real estate transactions so that they make the best deals.
Slow Growth in Home Prices
According to the S&P CoreLogic Shiller-Case Indices released on July 25, home prices in Chicago in May grew by 3.3 percent year-over-year from May of 2016. This was the lowest price increase out of any of the 20 metropolitan areas that were included in the report. Nationally, the average price increase in homes was 5.6 percent in May, with some cities showing much higher growth. For example, Seattle had a year-over-year price increase in May of 13.3 percent for the top spot. The other cities included in the survey all had single-digit price increases with Chicago taking the bottom spot. Sellers may want to discuss whether they should list their homes now or wait for when the prices climb higher. A Chicago real estate lawyer may help to analyze the market conditions so that sellers know when might be the best time to proceed.
Buyer Opportunities
The slow growth of home prices may present an opportunity for prospective buyers. While the growth rate and interest rates remain low, it may be a good time to look for homes to purchase. Buying while prices are growing more slowly and while the interest rates are still low may help buyers to save thousands of dollars on their home purchases. Since interest rates are expected to increase, buyers may want to consider purchasing homes before the increases go into effect. It is still important to conduct due diligence before purchasing a home to make certain that it is a good decision. A Chicago real estate lawyer may help buyers throughout the home-buying process.
