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Market Demand & Inventory

by Chicago Agent

Home prices continued to rise in 2015. Will this trend continue in 2016? If yes, how much of an increase do you predict?

Janet Owen: I certainly hope so, though it is hard to predict an absolute percentage of increase. It should be noted that the upcoming real estate tax increase and rising interest rates will most likely result in somewhat of an adjustment in home pricing.

Mike Golden: The best neighborhoods and towns will continue to see more demand and increasing prices. Some of the more fringe areas will continue to plod along and won’t see great increases.

Laura Ellis: The slow and steady price increase will continue into 2016. We have to remember that the Midwest tends to be a bit more conservative than most of the rest of the country, but I think we’ll see an average price appreciation of about 2.5 to 3 percent in 2016.

Rebecca Jensen: While I expect prices to continue to increase, I do not expect the radical jumps in prices we saw during the first decade of the 2000s.  There may be a couple of very good months, but for the most part I expect a small overall rise in prices.

Chris Feurer: I think they will continue to appreciate at the same rate.

Jeanine McShea: New construction, for sure. Most buyers would prefer to have a newly constructed home if they can afford it, so there’s a lot of pent-up demand in the market given the limited inventory. This is especially true among empty nesters who are looking to sell their home in the suburbs and move to the city for a more walkable, urban lifestyle.

Leslie McDonnell: I don’t believe so, or there will be another bubble, thus causing another huge correction, which I don’t feel the market will tolerate. I don’t think this trend will continue – prices can’t go up 5 percent each year realistically, and historically have not in this area.

Dan Wagner: I think we can expect another year of steady housing recovery. I see demand continuing to increase. The inventory is low, but the demand is there. We’re in a seller’s market; I expect that inventory will start to catch up as sellers become more confident. I think market times and home prices will stay on track with what we experienced in 2015.

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