(WTTW News)
2021 was the flagship year for the Chicago metropolitan housing market.
Realtors have sold more homes than ever before, but prices have risen at a rate not seen since the housing boom in the early 2000s. According to the Illinois Real Estate Agents Association, median home sales in the Chicago metropolitan area rose nearly 12% year-on-year.
Stimulating that demand was a combination of low interest rates and people seeking to move to a larger home inspired by pandemics as remote work became the norm for many.
“2021 is true to what started in 2020, where a huge number of people exchanged homes because what they lived in didn’t help the lifestyle of the COVID era,” said Crain’s Chicago Business. Dennis Rodkin, a residential real estate reporter, says. “They needed more room for work at home, school at home, workouts at home, and that really continued until the end of 2021.”
Rodkin said he believes the market could start to slow down a bit in 2022.
“There are limits at some point, right? If everyone replaces a home, anyone who wants to do it, it’s done. But, of course, there’s always a reason people buy a new home. Life cycle changes, marriages, divorces, empty nests, etc. I feel like the limits are approaching, but I don’t know where they are, “Rodkin said.
One thing that has pushed home prices up is the shortage of homes for sale. Demand easily exceeded supply due to tight inventories in 2021.
“I saw people lined up all the way down the block and saw the houses on the market that day,” Rodkin said.
He believes that some buyers who did not want to participate in the bidding war in 2021 could return to the market in 2022.
“I think a lot of people will come back because the rise in prices has slowed because the market frenzy has slowed,” Rodkin says.
Gwendolene Newton, a real estate agent and chairman of the African-American real estate industry group Dearborn Realtist Board, said the real estate market was booming in 2021 while the market was “flatter” for African Americans. I am saying.
“The number of buyers on the market and trying to buy has clearly increased,” Newton said, but inventory shortages have always been a problem.
Newton also states that discrimination in the past means that many African-American families do not benefit from the wealth of the generations that many Caucasian families take for granted.
“In African-American communities that know they are depleted of resources, the wealth levels of those communities are not as high as those of whites,” Newton said. “Therefore, it was difficult for African Americans to compete in some markets because they don’t have the same down payment … For families who have built a generation of wealth and then inherited it, they have a bank account. It’s easier to go to and withdraw available cash reserves. “
Discriminatory practices such as redlining are no longer “accepted,” Newton said, but there are various levels of scrutiny that African-American homebuyers receive when applying for a mortgage, “still to some extent. Discrimination is occurring. “
Both Rodkin and Newton agree that crime is one of the problems that could undermine the market after 2022.
“The crime hasn’t stopped buying or renting in the downtown market yet, but it may have closed (to the market),” Rodkin says. “If there were no crime issues, I wouldn’t know how many more people would have bought.”
Newton said the issue clearly motivated the migration of some African-American families.
“I think the level of crime currently occurring in Chicago really encourages families to move elsewhere,” Newton said. “There is a move of people moving to the suburbs-the southern suburbs are seeing a rise. Some people actually saw outside the state, applied for out-of-state jobs, and decided to relocate. There was also a transfer of the form of. “
Note: This story will be updated with a video.
The Chicago area housing market surged in 2021 but could slow in 2022 | Chicago News
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