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In May 2025, Chicago’s North Side housing market is expected to remain a seller’s market, with home prices continuing to rise and inventory levels staying low. Multiple offers are anticipated, and the market is expected to continue trending towards higher prices until inventory can catch up with demand.
Elaboration:
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Sellers’ Market:The current low inventory of homes for sale, coupled with continued demand, is driving a seller’s market. This means that there are more buyers than sellers, leading to increased competition and potentially higher prices.
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Rising Home Prices:Median home prices in the North Side are projected to continue to rise, with some neighborhoods experiencing double-digit increases in median sales prices.
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Low Inventory:Inventory levels are historically low in several neighborhoods, contributing to the seller’s market conditions. This means there are fewer homes available for sale, making it more challenging for buyers to find suitable properties.
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Neighborhood Variations:While the overall market is trending towards a seller’s market, individual neighborhoods may experience variations in sales trends and price increases. Some neighborhoods may see more sales activity and price increases than others.
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Multiple Offers:With limited inventory and strong demand, multiple offers are likely to be common, and sellers can expect to receive competitive offers for their homes.
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Interest Rate Sensitivity:While not explicitly stated in the provided search results, interest rate fluctuations can also play a role in the housing market. Fluctuating interest rates may slightly cool buyer enthusiasm but could also motivate serious buyers to act quickly.
Specifics:
- Near North Side: The Near North Side, known for its high Months of Supply Index (MSI), experienced a significant decrease in MSI.
- Lakeview: Lakeview saw an increase in inventory levels, but the overall market remains a seller’s market.
- North Center: North Center saw no change in inventory levels.
- Lincoln Park: Lincoln Park reported a decrease in inventory levels.
- Uptown: Uptown experienced a significant increase in sales.
- Lincoln Square: Lincoln Square also saw an increase in sales.
- Rogers Park: Rogers Park also experienced an increase in sales.
- Edgewater: Edgewater saw an increase in sales.
- West Ridge: West Ridge experienced a decrease in sales.
- Median Home Price Increases: Median home prices rose in several neighborhoods, with some experiencing double-digit increases.
The Chicago Housing Market is good value, but price appreciation is much slower than coastal city real estate markets. With mortgage rates going up, the housing market overall should cool. But I still expect prices to go up, given low inventory.
