As Labor Day approaches and children all around Chicago head back to school, we look at where things stand in our local real estate market. Overall, the story remains the same: prices continue to rise and inventory remains at historical lows, causing affordability issues as we await some relief in the form of lower interest rates. The stagnancy of the market is such that the previous sentiment has been continually repeated in our market updates over the past 18+ months. However, we are starting to see some bits of relief for downsizers, upsizers, first-time buyers, and anyone looking to transact in this stubborn market.
The Chicago suburban market saw marginal growth in July in sales year over year, but saw a healthy 6% increase in pending sales. July also saw a nice jump (5%) in housing starts nationally, which could help chip away at our nagging low-inventory issue. While data like this has a marginal impact on the big picture, it is worth monitoring to see if it turns into a trend.
Ultimately, many believe the path to improved affordability starts and ends with lower interest rates. We have seen a steady drop in interest rates to around 6.5%, which is down from just over 7% in January. Additionally, the markets are anticipating that the Fed will lower interest rates when it meets in September and possibly shed light on future reductions. All that could lead toward more affordability in the months to come.
The Elmhurst market continues to mirror the pattern of the overall Chicago Market.
Elmhurst Average Sales Price
Elmhurst saw a 6% increase in average sales price compared to the same period last year.
Elmhurst Months Supply
Inventory remains an issue in Elmhurst. Months supply continues to rest below 2 months, where it has been since February of 2022. Many experts believe a healthy market holds between 4-6 months of inventory.
Elmhurst Closed Sales By Month
The summer market appears to have had a positive reaction to falling interest rates, as June had the highest number of closings in a month since April 2022.
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Your local LW Reedy agent will be closely monitoring both the local real estate market as well as economic news affecting interest rates. Questions about interest rates, the real estate market, and your housing plans? Contact us today.
