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One can never predict exactly what the market will look like over the coming year, but local agents and other experts have some ideas about what we can expect. Rather than specific numbers and figures, let’s take a look at the forces these experts think will shape the market this year in Chicago:
With a new mayor to be announced in April, there’s some lingering uncertainty among Chicago residents. They’re wondering if the next mayor’s solution to the city’s pension debt will be a leap in taxes. Such a hike could have serious implications for buyers who may calculate their expenses based on current taxes. So, how is this playing out in home sales so far? Some buyers seem to be taking a wait-and-see approach. It’s not that interest has come to a halt, just that some prospective buyers are slowing their search until they have more information. Not only is that uncertainty shaping the current market, but we can also expect the outcome of the upcoming election and the new mayor’s tax policies to continue making an impact as the year continues.
We’ve been seeing this trend for a while now, and it continues into 2019. Interest in fixer-uppers is dwindling. We’re not seeing many Chicago buyers interested in homes that need work. This desire for move-in ready homes has put the pressure on sellers to capture their properties in their best light. If a seller is in a hurry to move his house, they’re going to need a picture-perfect listing to grab buyers’ attention. Though some sellers don’t want to make updates just to sell their home, they’re taking a large risk of being overlooked by buyers. With such high demands from buyers putting pressure on sellers, we can expect some beautiful listings this year.
Some years, we see a spike in impulse buying. People are feeling confident in the stock market and the economy, and they’re ready to act on their desire for a larger home or more luxurious location. This year, we’re more likely to encounter practical buyers. We’ll still see the trend of slow growth continue in the housing market, but prices won’t be driven up by multiple offers. Recent stock market conditions, as well as rising interest rates, will likely cause buyers to be more cautious. They’ll still be buying, but they may be more price focused and prepared to compromise in order to stay within budget.
While there’s no saying precisely how these factors will influence the housing market, there are some strong ideas about the trends they’re likely to continue or create. Buyers may be a bit more cautious in their spending, but they’ll still be looking for move-in ready homes. For sellers, they’ll need to meet buyers’ demands if they want their listing to move. How do you think these forces will influence the market? Are there any other major players you think could have an impact?