Hard to believe the holidays have passed us by and we are already a few weeks into 2018. But such is life. It doesn't stop for anyone. That being said, I expect 2018 to be a different market than the previous year.
The last couple of years Chicago experienced an unseasonably warm winter. This really threw our market off in terms of timing. Chicago typically has 2 busy selling seasons, spring and fall with things slowing down during the winter months. Due to the warm temperatures, our market was still relatively busy during the winter months with a huge push in spring then a level off for the rest of the year. This year with a normal winter, I expect Chicago to see the normal two busy selling seasons of spring and fall with the summer months being busy as well.
Inventory has been a hot topic for a number of years. Or basically a lack of inventory. This year I expect to see more properties available to buyers and a more leveling off of buyers to sellers. I expect the buyers to gain a little more power this year but it to still be a seller's market.
This year I expect prices to level off a bit but to continue to rise. I expect to see a 3-5% increase in price year over year. The last few years we have seen a huge jump in prices due to a lack of inventory. With inventory leveling out this year, the rising prices should slow down a bit.
Rental prices have been skyrocketing over the last few years. But, developers have been throwing up rental buildings like its going out of style. There has been a huge flood of units onto the market over the last few years and will continue to do more of the same this year with more buildings being built. I expect rental prices to level off if not decrease a bit.
The last few years Chicago has witnessed a boom in new construction all over the city. This year will be no different. Projects are being proposed every day and permits are being requested almost hourly. Unfortunately, these new projects are mostly rental unit and commercial buildings. Any new condo developments are high end luxury except on the west side of the city where developers are willing to build on a smaller scale to appeal to the mid-price points. I expect to see many more cranes rising this year around the city.