The Chicago real estate has seen strong growth over the last three years. There has been significant positive variance in our market over the rate of recovery across the region, driven by a balancing act of housing inventory and price growth.
2016 was distinguished by a marked increase in new high-rise construction projects within downtown Chicago.
The housing outlook for 2017 is positive; prices are expected to increase 3% nationally. For Chicago, we anticipate modest increases in home values of 1-2% in 2017, but there will be significant variance among communities and property types.
Healthy labor markets, and less restrictive lending standards are favorable to buyers. The first significant increase in mortgages rates in several years may increase demand in the short-term.
Low inventory in some areas will continue to impact activity and prices.
Luxury residential sales distinguish the downtown market. Luxury rentals and single family new construction are in demand. And there is continued interest from international consumers and investors.
Overall, according to Crains Chicago Business, there was a minor value fluctuation in 2016 depending on the neighborhood and the type of property. This is typical of the Chicagoland market , no great blips one way or the other.
We anticipate steady and sustainable growth that real estate is a dependable long-term investment for homeowners.