As the coronavirus (COVID-19) pandemic continues through the winter, it brings more challenges to the table for various industries. But according to the latest statistics, the real estate sector continues to steer clear of these negative effects.
This also holds true for the Illinois real estate industry, which is keeping steady on its feet. However, it’s especially apt for the Chicago housing market that remains thriving as the real star of the region. With both sales and prices posting yearly increases, the area recently stood out as a homebuyer hotspot for October 2020.
Lower Interest Rates Have Boosted the Market
Due to the circumstances triggered by COVID-19, the average rates for 30-year fixed mortgages reached all-time lows in 2020. Even as the general economy hit a roadblock in many aspects, these interest rates kept the real estate market alive.
With an average rate of 2.83 percent for 30-year fixed mortgage, the phenomenon was well-noticed in October 2020. Thanks to low interest rates and increased buyer attention, homes for sale in Chicago and surrounding suburbs gained newfound attention. According to the Illinois Association of Realtors, the market saw tremendous increases in overall sales and transactions.
The Chicago metro area saw a 39 percent increase in home sales as compared to October 2019. Whereas, the median price for local homes increased to $274,050 from $240,000, marking a 14.2 percent increase.
Overall, this also surpassed Illinois’ home sales performance, which trailed behind at an annual increase of 34.9 percent.
It Took Less Time to Close a Home Sale in October 2020
With the staggering increase in home sales, the Chicago housing market experienced a period of heightened activity in October 2020.
It took an average of 43 days for a home to find a buyer after being put on the market. Overall, this statistic noted a 17.3 percent decrease from October 2019. As a result, it also spoke in favor of the metropolitan area and its housing market.
However, the sharp decline in inventory also increased the competition for any homes for sale in Chicago. As compared to October 2019 where 60,127 homes were put on sale, October 2020 only had 39,419 listings. This marked a drop of 34.4 percent in the annual inventory and outlined an increased demand in the area.
This Marks the Fourth Year of Such Statistics
The decrease in mortgage rates has much to do with the overall increase in sales. However, it is not the only driving factor behind these incredible statistics. This contrast of shrinking inventory and increased prices is certainly new for homebuyers hunting listings during COVID-19. But the Chicago housing market is no stranger to these developments.
According to records, the Chicago area has seen these improvements year-after-year for 4 consistent years. Over the past few years, it has posted heightened sales performance than other regions but remained consistent with price increases.
Learning that these developments are nothing new for the area is actually good news. Whether you are hunting for a home or selling one in the Windy City, these effects won’t diminish your experience. As long as you can find a reliable realtor, you can easily find a suitable match for your requirements.
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