As we enter the 2025 spring real estate market in Chicago, we find ourselves in familiar territory. A quick review of the 2024 year in real estate can help us prepare for what’s ahead in 2025.
What did we see in 2024?
Fewer transactions, historically low inventory, stingy interest rates, and a continued rise in overall home values defined the year. Depending on where you are in the home-owning cycle, some of this news may be welcome.
- Homeowners firmly planted in their current homes have seen a steady climb in the equity of their homes. Elmhurst homes have seen a whopping 50% increase in value since 2020.
- However, those needing to navigate to new housing during this market have found it difficult, to say the least.
Average Sales Price
The Chicago market and the Elmhurst market have both seen significant gains in this inventory-starved market. In particular, Elmhurst saw a 13% increase in average sales price over the last 12 months.
Inventory
Much of the increased average sales prices can be attributed to continued historically low inventory. Elmhurst currently sits at 1.7 months of inventory and never rose above that mark for the entirety of 2024.
Interest Rates
On top of that, the predicted interest rate cuts in 2024 didn’t materialize. Interest rates have bounced around 7% in 2024.
Rising home values, coupled with higher interest rates have created a tough environment for buyers. There is still uncertainty about when interest rate relief will come to buyers, but most experts expect some cuts to come this year.
Overall Sales
These factors led to one of the slowest years in Elmhurst transactions in recent years. Elmhurst has seen a steady drop in overall sales over the last 3 years. The 483 transactions in 2024 represent a 24% drop in transactions from just 2 years ago.
Our early spring inventory and predictions for slower-than-predicted interest rate drops lead us to believe that the 2025 housing market will be similar to that of 2024.
Whether you are firmly planted in your current home or need to navigate to new housing, you may have questions about how the housing market impacts your investment in your home and your plans for the future. Contact your LW Reedy Realtor today for more information.
