2021 Market Forecast:
It is always hard to foresee the future---especially this year! No one could have ever envisioned all the changes and hardships that were coming or the upswing in housing that followed! According to the National Association of Realtors, existing-home sales rose by +4.3% to a seasonally adjusted rate of 6.85 million in October which is now the fifth consecutive monthly increase. Existing sales are now up +26.5% compared to October of 2019. The median existing-home price was $313,000, which is almost +16% more than the same time period last year... Total housing inventory at the end of October was down -2.7% from September, and down -19.8% for one year ago. Current inventory is at an ALL-TIME LOW 2.5 month supply down from 2.7 months in September and down from 3.9 month supply in October of 2019. Properties were on the market for 21 days in October of 2020 (same as September), and down from 36 days in October 2019. First time home buyers made up 32% of the sales in October, up from 31% in both September 2020 and October 2019. In the Midwest, sales are up +8.6% in October and are up a HUGE +28.1% for the same time last year.
So, currently, all indications point to an EXTREMELY good year to sell in 2021--LOW-interest rates, LOW inventory, and HIGH demand combine for a perfect recipe for success! With a long winter and Covid-19 still causing major disruption, we are forecasting a very strong Spring and early Summer housing market. The trends we are seeing are not "a flash in the pan"--- it is a true market shift---working from home, a new generation of home buyer's, and historically low-interest rates have created this strong seller's market. It will not last forever as real estate is a very cyclical business, and Illinois is still facing a lot of economic hurdles, but 2021 should be a GREAT year to sell your home or to buy your dream house! (The Conventional Loan Limit was just raised from $510,400 to $548,250---which means a buyer can purchase a $575,000 home with as little as 5% down!) Please call or text us---We would love to help you in any way possible. Stay healthy and enjoy the holiday season! Thank you all for your continued support!