High mortgage rates kept a lot of would-be home buyers in Chicago on the sidelines last year, but they’ve waited long enough.
Chicago’s housing market has experienced a surge in home showings so far this year, following a disappointing 2023 in which sales dropped by 20 percent, Crain’s reported, citing Midwest Real Estate Data.
This interest in looking is driven by fluctuating interest rates and unusually mild winter weather. Local resident Clint Sabin’s recent experience illustrates this shift: after struggling to attract buyers for his Uptown condo last year, his unit recently received nine showings within the first nine days of relisting it, ultimately securing a contingent contract.
While precise figures are not disclosed, the number of real estate showings in Chicagoland this year surpasses levels seen during the same period over the past four years, including the pre-pandemic period of 2020.
Jenny Ames, CEO of Engel & Völkers Chicago brokerage, describes the recent uptick in traffic through her listings as “exuberant.” Properties that previously struggled to attract attention are now receiving multiple showings within days of relisting. For instance, a townhouse in Lincoln Park, represented by Ames, received a flurry of showings within days of being relisted with a slight price reduction.
The increase in buyer interest is notable given that interest rates remain higher than during the post-pandemic housing boom, which peaked halfway through 2022. The slight dip in rates, however, has encouraged potential buyers to re-enter the market, spurred by the possibility of further decreases.
Recent statements by U.S. Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell, indicating favorable economic conditions, support the expectation of continued rate declines.
In addition, the mild winter weather has played a role in revitalizing buyer enthusiasm, according to Berkshire Hathaway HomeServices agent Rich Aronson.
“When it’s 50 degrees, and there’s no snow or rain or mud, and you don’t have to bundle your kids up, it’s a lot easier to go look at an open house,” Aronson told the outlet. “We’ve had kids playing soccer in the yard during an open house — in February.”
—Quinn Donoghue
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