Real estate experts across the board expect mortgage rates to fall and home sales to increase in 2024. And, according to the Mainstreet Organization of REALTORS®, this may ease the “lock-in effect” characterizing Chicagoland’s suburban market.
A press release from the association references new data from National Association of REALTORS® Chief Economist Lawrence Yun, who predicts that in 2024, new-home sales will increase 19% and existing-home sales will increase 13%.
“There is significant pent-up demand in Chicagoland, and I would agree with Dr. Yun that if the Fed begins to walk back the mortgage rates, the housing market is going to heat up,” Mainstreet President Tim Ryan shared in a statement.
“This will come as welcome news to buyers, particularly millennials, who have been edged out of the market for much of the past year due to affordability, difficulty finding the right property and more,” Ryan said. “There are people who have the desire to relocate to the suburbs, find something bigger, better or more finished.”
However, in November, detached suburban sales were still down. During the month, 2,026 detached single-family homes sold, which reflects an 11.9% decrease year over year. Meanwhile, prices increased 9.8% from $325,000.
Looking ahead, Mainstreet CEO John Gormley said all signs are pointing to a stronger 2024. “This is really important, especially for first-time homebuyers who want to get settled and begin building equity,” Gormley said. “So many folks have had to defer home ownership this year, and I’m hopeful that next year will be their time to make a move.”
Market challenges have led to increased demand for attached homes, though. The number of attached homes under contract in the Chicago suburbs was up 10.8% year over year during November, with 989 contracts, while prices rose 14% to $215,000.
The suburbs which saw the greatest increases in attached homes under contract were, in order: Lisle (122.2% increase), Calumet City (120%), Wheeling (93.3%), Elk Grove Village and Vernon Hills (both 50%), Hoffman Estates (42.9%), Bloomingdale (40%), Hanover Park (35.7%), Des Plaines (22.9%), Schaumburg (15.6%), Round Lake (14.3%), Downers Grove (13.3%) and Palatine (5.7%).