NAPERVILLE ILLINOIS

By Jackie Beardsley

Housing Shortage

NAR is forecasting the 30-year fixed mortgage rate will average 6.97% in 2023, then decreasing to an average of 6.32% in 2024.

Existing home sales are predicted to decrease 17.5% 4.14M in 2023, before rising 13.5% to 4.71M in 2024. We will also see an increase in new construction in 2024. Currently, pending contracts are historically low.

It appears that a good part of 2024 will look like 2023 but real estate and the economy are two areas that can't really be predicted, there are too many underlying factors involved. Sellers don't want to give up their low interest rates which is largely contributing to the current shortage. Without adequate supply, prices will remain high.

All real estate is local, keeping current with your local market is important in this ever-changing housing market. Here are some current home price statistics for Illinois.

DUPAGE COUNTY 3RD-Q YEAR TO DATE

For all properties year to date.

MEDIAN SALES PRICE - THRU Q3-2022 $360,000

MEDIAN SALES PRICE - THRU Q3-2023 $370,000 +2.8%

ENTIRE STATE OF ILLINOIS

For all properties year to date.

MEDIAN SALES PRICE - THRU Q3-2022 $265,000 MEDIAN SALES PRICE - THRU Q3-2023 $270,000 +1.9%

Below is an excerpt for the housing market in Illinois from the 'Illinois Realtor Report' for September Activity-followed by the Housing Shortage Map, from NAR.

“Prices continued their usual seasonal decline from their peak in June for both Illinois and the Chicago area,” said Dr. Daniel McMillen, professor of real estate and associate dean for faculty affairs at the University of Illinois Chicago College of Business Administration. “However, they remain much higher than at this time last year. Our forecasts indicate that prices will continue to decline somewhat over the next three months, while remaining higher than at this time last year. The number of sales remains low and is forecast to decline further over the next three months.”