The Chicago Association of REALTORS®, the “Voice for Real Estate” in Chicago since 1883, represents 17,000 members from all real estate specialties including commercial sales, development, property management, appraisal, auctions and residential sales.
Learn how we help our 17,000 members. Membership options are available for licensed real estate professionals and those affiliated with the real estate industry!
REALTORS® Real Estate School offers all kinds of real estate licensing and training. Browse self-paced, online training or live classes in our modern, downtown classrooms!
How can we help your business succeed? Your membership includes multiple resource guides on industry topics, tools to increase your knowledge and market statistics to help your serve your communities.
2015 was a great year for housing. Looking forward to 2016, here are some trends REALTOR.com® chief economist Jonathan Smoke wants you to keep in mind:
Real Estate Is Cool, Again
Real estate fundamentals have shifted solidly towards a stronger and healthier market.
Chicago is an affordable large market (median list in November $236k compared to $230k for US). Only Philadelphia has a substantially lower median out of the largest 10 markets in the US.
Inventory had been growing as the market worked through final foreclosure hangover but it appears that the market began a tightening phase this fall with the major counties (Cook, DuPage, Lake, and Will) now seeing lower inventory than last year.
Chicago, We Have An Inventory Problem
Demand continues to exceed supply.
Inventory in this market is now moving 11 days faster than the US overall (median days on market is 73 vs. 84 days respectively). On the demand side, listings in this market get approximately 22% more views than the US overall.
In 2016, we expect single-family home sales in the Chicago-Naperville-Elgin, IL-IN-WI Metropolitan Statistical Area to decline compared to 2015 as a result of tighter inventories. Median single-family home prices are expected to increase more than in 2015 and well above average due to the tighter supply.
That sort of mixed growth outlook is a result of the market transitioning from having an elevated level of foreclosure sales and distress to having less distress and more healthy sales but with tightening supply. This happened for the US in aggregate in 2014 when home sales declined but price growth accelerated. Like other judicial states, IL is behind the US in terms of working through the foreclosure overhang.
New Construction is Back
New construction is on the rise, but demand is outpacing the inventory yet again. Also, new construction leans heavily towards the rental market, as rents continue to climb.
Millennials Matter
Demographically, the Chicago market is younger than the US average, and has a higher share of Millennials. Their numbers plus the affordability factor and improving economy have resulted in more Millennials buying homes (41% vs 35% nationally based on purchase mortgage market).
Inventory becomes an issue as Millennials want to buy, but there isn’t enough to meet that demand. Hence, rising rental rates and a boom in new construction on luxury apartments.
Don’t Forget the Baby Boomers
Just as Millennials will drive demand, Baby Boomers are equally important to the 2016 market as they look to downsize or find the home for their next chapter. However, as Baby Boomers list, there may be a disconnect between where Millennials want to buy, and where Baby Boomers are selling.
Video
Check out Jonathan Smoke’s full presentation, as well as the panel discussion, below:
As regular attendees of our annual Market Outlook will remember, Jonathan Smoke also DJs. Here’s DJ Smokey Smoke’s 2016 Housing Outlook playlist for your enjoyment!
Tweet Tweet
Check out what your fellow REALTORS® thought of the event: #CAROutreach.
You can see how this popup was set up in our step-by-step guide: https://wppopupmaker.com/guides/auto-opening-announcement-popups/
We Apologize for the Inconvenience
Our phones are temporarily down. Please email membership@chicagorealtor.com for any immediate needs. We apologize for the inconvenience – thank you for your patience!
Precautionary Measures and Information Regarding COVID-19
Your health and safety is of the utmost importance to us. As COVID-19 is predominantly spread through close contact, out of an abundance of caution, all events through April 30 will be either canceled or postponed, except for Coffee with Your GADs, which will take place virtually. This includes our annual Sales Awards, which we are working to reschedule.
If you have registered for one of our upcoming events, look for an email with further details. All tickets for paid events will be automatically refunded. Please allow 3-5 business days to see the refund on your bank statement. Questions? Please reach out to our events team.
Precautionary Measures and Information Regarding COVID-19
As COVID-19 is predominantly spread through close contact, out of an abundance of caution, all in-person classes scheduled through April 30 will take place virtually.
RRES staff has reached out to those of you who have registered for an affected class with an option to transfer into an online option or reschedule for a later classroom date. CAR to You is available in the meantime to assist you with your education needs and we have a variety of classes being offered online and via webinar for your continued development.
