Our 2013 Real Estate Predictions for Chicagoland

Happy New Year as we welcome in 2013. 2012 was a great year and I am optimistic that 2013 will be better than 2012. I have 5 predictions about what will happen this year in the Chicagoland Real Estate Market and the homes that are for sale in the marketplace.

#5: Shortage of Quality Inventory: I have been saying that our marketplace has a shortage of quality inventory(inventory that is priced right, shows well, has new upgrades, etc) This is the type of home that the buyers in the marketplace are eating up right now.

#4: Rents continue to rise: With short-sales and foreclosures still occurring, along with Generation Y/Millennials turning another year older and starting to move out of their parent’s homes, this will continue create the demand that we have seen the last several years.

#3: Short Sales Continue to Occur, Bank-Owned Properties Continue to Appear, Both with Less Frequency: I still expect to see many short sales and many bank-owned properties come on the market in the marketplace,  just at a lower frequency than previous years due to the fact we are through many of the expected resets and defaults.

#2: Sales Will Be Up Again This Year Over Last Year: I think that sales will be up again this year, due to people having a compelling reason to buy or sell, people who have put off moving for the last several years.

#1: Pricing will rise…: *Pricing will go up in areas due to demand and depending on the area. I expect pricing if it goes up only to go up by fractions of a percent.

Bonus #1: Appraisal issues: I think we will see appraisal issues due to lack of inventory and multiple offers, as a result homes might sell for over perceived market value and as a result create a snag in the appraisal process.

Bonus #2: More Builders Beginning to Build: Many Builders have been building in the current market, but many have sat out. I predict we will see more builders entering the marketplace in order to satisfy demand.