In the recent past, the Chicago Real Estate Market has improved a lot and still growing faster than other markets. As the experts say, retailers may face a tough time while looking for brick-and-mortar stores. On the other hands, home sales may increase due to a decrease in mortgage rates.
Throwback to last few years
Back in 2013, Ben Bernanke, Federal Reserve President pointed out that the rate would hike after the Central Bank buys few bonds. That incident had led to an increase in mortgage rate drastically. Consequently, home sales had fallen drastically. In 2018, again, the mortgage rate had increased and that continued till 2019.
Experts, in 2019, forecasted that the 2013 incident may repeat. They said, the first few months of 2019 would be worse, but eventually, the real estate market will see a better time. As per the forecast, the first quarter of 2019 showed a much higher mortgage rate and lower sales of homes. Eventually, the mortgage rate had fallen and home sales got better. In the last quarter, after September 2019, the rates reached a 3-year low level and gave a boost to home sales.
Expectation in 2020
2020 will be a positive year for the real estate market and its professionals. The mortgage rates will be around 4%, said by the experts. However, the rates will not go extensively below 4%. If we talk about the Chicago real estate market for retailers, the retailers who are searching for rented stores, they may have difficulties. The store owners who also have e-commerce access will make more money as online purchasing is much more in demand than visiting brick-and-mortar stores.
Shortage of homes will persist in 2020 as well. This will lead to a price hike for properties. Hence, buyers will face the issue of finding a perfect home in a perfect location. The millennial that is turning 30 in 2020 is keen to buy a home rather than renting it (via realtor) at a much higher cost. Eventually, it will generate excess demand for homes in the market. The home builders are likely to construct more high-rise buildings with residential apartments to ease the cost of a home purchase.
Role of Real estate professionals in 2020
2020 will bring good news for real estate professionals as well. As the market keeps improving, the demand for buying homes is increasing. Licensed brokers are surely in-demand at this stage. Real estate schools in Chicago are providing extensive opportunities to help students getting a real estate broker license. A licensed broker can easily attract potential clients from diverse locations within any state.
Overall 2020 will bring some improvements in the Chicago real estate market.
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