How coronavirus is affecting the Chicago real estate market
January 22, 2021
Last March, when the novel coronavirus rocked the world, and hit the U.S. especially hard, no one knew what would happen, and many people believed things would return to normal in a matter of weeks. Clearly, this has not been the case, and a timeline for a return to “normal” is still unknown. Not only has COVID-19 had tremendous effects on all aspects of the economy, family life, the education system, and mental health, just to name a few sectors, but it has also very much affected the real estate markets.
Highly populated cities like New York, L.A., Seattle and Chicago, where shelter-in-place mandates were ordered and protests became violent, quickly saw residents fleeing for the suburbs. Some people had second homes or families with whom they could shelter-in-place, and others had already been thinking about making a move out of the city and the pandemic simply sped up their timeline. People who used to be able to leave their homes and apartments to enjoy the diverse and bustling city life were suddenly seeking more space, homes unattached from their neighbors, quicker gateways into nature.
Though cyclical shifts from urban to suburban living are nothing new, this particular shift has been quick and thorough. And the trend may be long-lasting, as the fear of more pandemics like COVID-19 are likely in our future.
What does this mean for the future of the housing market?
- High demand for single-family housing
- Increase in single-family construction
- Higher sales prices for suburban homes
- Shortage of suburban single-family housing inventory
- More opportunities for remodels/renovations
With mortgage rates at an all-time low, working from home at an all-time high and people eager to get out of large cities in search of space, there has been a flurry of suburban market activity.
What about Chicago specifically? While real estate prices in Chicago proper seem to be holding steady, there’s definitely been evidence of a shift toward more buyers purchasing in Chicago’s burbs. Let’s take Hinsdale for example, a suburb located 20 miles west of downtown Chicago. Comparing December 2020 with December 2019, total inventory is down 36%, closed volume is up 65% and the sales price on average is down 3.82%, however variable on price point. The overall Hinsdale market is a sellers market with 3.4 months of inventory going in to January. With the overall average days on market down 49%, it can be tough for buyers to compete in the market, especially for homes priced $1-$2M where the average days are on market are down 89% and average sales price is up 5%! (Stats obtained from Jameson’s Sotheby’s Market Reports.)
Enter: DiCosola Group. Not only do they know the Chicago suburbs like the back of their hand so they can help clients locate their ideal neighborhood, but their Director, Marie DiCosola, is also a full-time real estate agent with luxury brokerage Jameson Sotheby’s International Real Estate, helping buyers and sellers alike navigate this tricky time. The team at DG also has the ability to help clients from start to finish on any home project, whether it’s a custom luxury build, or a premium remodel or renovation of an older home. DG is also currently seeking suburban single-family and multifamily projects to help put more housing into the marketplace.
Marie is able to provide clients with the best access to opportunity, whether its land, new construction or existing homes. She has a knack for realizing and knowing value as well as seeing future potential in a property. Once she’s helped you find the right property, she enlists her husband and his team to work on your project, from a ground-up build to an addition, or kitchen and bath remodel. At DG, they do it all, but especially love working on residential projects, as they are more personalized and unique, each one catering to the needs of the individuals and families involved. Reach out to DG to see how they can help with your next project.
Read more about COVID-19’s effect on real estate and the shift from urban to suburban living