Chicago’s competitive real estate market has been heating up, with low inventory and high demand creating a hot housing market that’s led to intense competition among buyers. With a historically low inventory of homes for sale and strong demand from buyers seeking more space and outdoor amenities due to the pandemic, many neighbourhoods in the city are experiencing bidding wars and rising prices.
Navigating Chicago’s Competitive Real Estate Market: Low Inventory and Strong Demand Lead to Rising Prices and Bidding Wars
According to data from the National Association of Realtors, as of February 2023, the inventory of homes available for sale in the Chicago metro area was only 1.8 months. This is well below the balanced market supply of six months and a significant drop from the 3.2-month supply recorded in February 2021. However, the city’s diverse neighbourhoods, excellent schools, and robust job market continue to attract new residents, resulting in high demand for homes in Chicago.
In this highly competitive housing market, potential homebuyers must be prepared to act quickly and make strong offers. Working with an experienced real estate agent can help buyers navigate the bidding process and identify homes that meet their needs.
Since the inventory is low and demand is high, finding the perfect home may be more challenging. Therefore, buyers should be open to exploring different neighbourhoods and types of homes to increase their chances of success. As of February 2023, the median home value in Chicago was $311,877, up 17.5% from the previous year, reflecting the tight inventory and high demand in the city’s real estate market.
In Chicago, the high demand and low inventory have caused a fiercely competitive housing market. However, buyers can still succeed in this market with the assistance of an experienced real estate agent and a willingness to be flexible in their search.
At Neuma we bring a differentiated level of financial sophistication and personal touch to our delivery of real estate services. We support our client’s decision-making by providing differentiated market intelligence. Contact us today to help with your real estate needs.
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