Housing Market Update: 2023 Market Review & a Look Forward to 2024

Dated: January 30 2024

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Now that 2023 is “in the books,” let's look at how the real estate market fared in 2023 and where it is headed in 2024.

While lack of inventory and interest rates will likely continue to dominate the landscape in 2024, experts are optimistic that interest rates will decrease over the year. Lower interest rates may initially put more pressure on our low inventory, but these lower rates may motivate listings from “on-the-fence” sellers who have been hesitating to upsize or downsize since rates started to ascend in the second half of 2022.

Before we jump into predictions for 2024, let’s take a closer look at 2023 by visiting some of our favorite stats.

2023 MARKET REVIEW

INVENTORY

As noted several times last year, both Elmhurst and the Chicagoland market overall were burdened with low inventory. 2023 wrapped up with inventory in the same place it was at the beginning of the year: below 2 months. Understanding inventory statistics associated with a healthy market can help provide perspective on just how low inventory has been recently: experts expect a healthy/even market to have an inventory of 4 to 6 months.

OVERALL TRANSACTIONS

Lack of inventory led to a significant drop in overall transactions. Total MLS transactions dropped 17% from 2022 to 2023. Quantity of transactions has not been this low since the real estate market's recovery from the Great Recession in 2012 and 2013.

AVERAGE SALES PRICE

In good news, prices held firm in the Elmhurst market and, in some cases, showed modest gains. Both Elmhurst and the overall MLS saw a roughly 1% appreciation in average sales price.


A LOOK FORWARD TO 2024

As 2024 begins, similarities with 2023 are clear with one major exception raising optimism for the year: interest rates. Following multiple rate increases since 2022, the Fed is indicating plans to institute several rate cuts in 2024. Most experts expect a “kinder, friendlier” market in 2024, with improvements in transactions, inventory, and, depending on how far rates come down, perhaps affordability.

To learn more about predictions for the 2024 real estate market, read these articles:


What are your real estate plans for 2024? If you have been waiting to downsize or upsize and would like help evaluating if 2024 might be the right time to sell, contact your LW Reedy agent today. 

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