Great news! The Chicago real estate market is stronger now than it has been in more than a decade. This is due to a healthy economy and the development of Chicago new construction condos. Positive State of the Market Consumer confidence is at a 15 year high. The US stock market is relatively strong. Overall, Chicago housing prices are in-line with historical growth and inflation. Interest rates continue to remain historically low. Inflation is relatively low. Chicago wage growth continues to rise. Employment is at record highs in Chicago’s Cook County.
Low Chicago Real Estate Inventory
While housing inventory is still very low, it has risen from two to four months of supply since the 2016 spring market. Existing homeowners ready to sell should put their Chicago condo on the market now. This is because it will likely sell fast. The average number of days on the market is short and good properties sell quickly.
More Chicago New Construction Condos
Noteworthy is the shift to more sales of new construction real estate. Builders are more optimistic this year. They are comfortable building developments to cater to an audience of buyers who want to brand new condos. The Chicago new construction condos being built are mostly high-end. The cost of construction and materials has gone up in recent years. Floor plans are larger, around 2,000 square feet or more, and feature two or three bedrooms. Consequently, starting prices are close to a $1,000,000 and above.
The Target Market
Chicago has more opportunity and affordability than most other major cities in the country. The real estate market in Chicago has a lot of potential because of its large Millennial (people ages 25-34) population. Significantly, Chicago has 11% more Millennials than other major cities and this is the demographic currently buying real estate in Chicago. Forty-three percent of mortgage purchases in Cook County in 2016 went to people under the age of 35.
In conclusion, the general environment for buying and selling housing remains positive in Chicago. Last year was great and the 2017 forecast looks to be even stronger for the future of Chicago new construction condos.
If you are interested in learning more about purchasing, or selling, a condo in downtown Chicago, click the button below to connect with our experienced Chicago real estate brokers.