Illinois Real Estate Market: Will it Crash in 2023?
The pandemic we went through has turned everything upside down. Prices have skyrocketed, and they keep growing. The real estate market is no exception, and it has seen the most change. It has been turbulent in the past few years, with the demand and supply constantly at war. With many industries completely stopping, many people’s incomes lowered, which greatly affected the market for real estate. This also affected the majority of packing services Chicago providers. During the pandemic, only 16 million people moved, compared to the normal amount of 28 million people. But now with everything going back to normal, we all hope that the Illinois real estate market will also stabilize. We will discuss this further down below.
How is the current situation in the Illinois real estate market?
Illinois, like every other state, and every country, has had a turbulent few years. Home values have gone up by 9.3% in the last year alone. This results in a price of around $100,000, whereas rent is from $700 to $1000. The national average value for a home is $300,000 and rent is $1,100. Even with the increase, Illinois still has 14% lower housing costs than the national average. Even reputable movers have also increased their prices. But reliable moving companies such as Golan’s Moving & Storage are still affordable and of good quality. Still, with all the changes that have occurred, these prices will also likely change in the recent future.
What influences the real estate market the most?
The economy of a country is a very delicate mechanism that can get thrown off balance very easily. Many factors have come together and succeeded in doing this, and it still hasn’t recovered. This market also affects the moving industry, and moving to Illinois might not be possible at the moment. The real estate market is currently most affected by:
- The limited housing inventory – the price increase for building materials and permits has resulted in a 7% drop in home construction in a single month!
- High mortgage rates – the majority of homebuyers don’t have the money upfront for buying a home, so they rely on mortgages to help them out. These rates have increased drastically over a year, from $3.22 to 6.61% in 2022 alone. This has made the dream of owning a home even more unrealistic for many.
Will the market crash?
When a housing market crash is about to happen, you will notice a 20% to 30% drop in home prices, a decline in home sales, and more foreclosing activity. None of these are happening at the moment, so the market is more likely to correct itself, rather than crash. Another good news is that the market nowadays is much more secure than when it came out of the 2008 crisis. Professionals are estimating a 5% drop, but some regions might still experience increasing prices. If you also get a moving estimate Chicago now, you will likely get it for a lower price than you would if you wait it out.
If you plan to buy a home in 2023, when should you do it?
Buying a home is a big investment and a very personal decision. The deciding factor for many people is the price, but that should not be your main focus. Today’s market is very unstable, and if you wait for a lower price, you are likely to get disappointed. In case you found a house that you like and it fits your budget, you shouldn’t wait it out. You also shouldn’t wait to book your date with some residential movers in Chicago, because this way you will also save money!
The housing market is uncertain in the whole world, and the Illinois real estate market is no exception. The price predictions are still just predictions, and you should take them with a grain of salt. But whatever you decide to do, we wish you good luck!