Housing Market Update - Midyear 2023

Dated: September 1 2023

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As the days get shorter and children return to school, we look back at the first half of 2023 and assess the local real estate market. As we’ve shared many times recently, our current market conditions are greatly affected by continued low inventory with, on the positive side, an increase in average sales price and, on the negative side, a decrease in total homes sold in both Elmhurst and the great Chicagoland area.

These trends continue despite the Fed's attempts to fight inflation with regular increases in interest rates. As of the end of August, economic data indicates that the Fed may pause rate hikes, which implies that there are signs of a slowing economy. A rate-hike pause—and, more importantly, a drop in rates—could bring some relief to low inventory in the form of sellers who can afford to “let go” of current lower interest rates. Homeowners who refinanced at rates in the low 3% range in 2022 cannot afford to absorb current interest rates by selling and buying with current interest rates. Even a drop in rates to the high 5% to low 6% range could motivate would-be downsizers and upsizers to move.

CURRENT MARKET TRENDS—ELMHURST


Despite increasing interest rates all year, Elmhurst has seen a 5.3% increase in Average Sales Price over the past 12 months. 

As mentioned above, Elmhurst inventory is at historic lows, still resting just below 2 months of inventory.



As we enter the fall and winter months, it is typical to see foot traffic/showings slow down dramatically until the start of the spring market. Indications suggest that trend will continue in the 2nd half of 2023.

IN THE NEWS

The following helpful articles from both local and national resources also provide insight into today’s market:


If you're thinking of buying or selling or would like to discuss the market's impact on your family's plans and housing investments, contact your local LW Reedy agent.

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