Market Update: January 2021

Dated: January 25 2021

Views: 394

If you listen carefully, you can hear us wadding up our 2020 market update and throwing it into the trash. It’s not that our predictions were wrong: we did expect the market to be healthy and that prices would increase. But we could have never predicted HOW we got there. 

As with every industry, the 2020 real estate market was hugely impacted by the Coronavirus outbreak.  As the banking industry and government sought to steady the economy, we saw already appealing interest rates lower even further. With many companies and schools moving to virtual offices and work-from-home orders becoming common-place, many residents of Chicago were inspired to “head west” to the suburbs for more space, both inside and out.

Elmhurst and much of the Chicagoland area saw encouraging changes in all the important sales metrics in 2020 as compared to 2019.

Average Sales Price rose 7.8%.

Average Days on the Market (list-date to contract-date) dropped by 6.4%.

The Number of Closed Sales rose by 15%. 

Average Showings per listing rose by 23%. 

The Months Supply dropped by 30%.

By year’s end, we saw an almost 8% increase in sales price in Elmhurst, and we expect growth to continue in 2021. 

We expect inventory to be the biggest challenge for the 2021 real estate market. While low inventory levels typically push prices higher, which is good for many sellers, if inventory levels dip and hold below the sub-four-month level, that could push many “would-be-buyers” out of the market. Indeed, we’ll be entering 2021 in a seller’s market, but we are hopeful that inventory increases enough to give buyers the options they need to stay active in the market. 

The following list provides more local and national predictions for the year ahead:

If you have questions about how predictions for the 2021 housing market could impact you and your family, get in touch with us here at LW Reedy. We are happy to talk it through with you. 

As always, if you are thinking of buying or selling, contact your favorite LW Reedy Agent to help guide you with your decisions.  

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