Winter, 2023 Update

2-25-23

Friends and Colleagues,

I’m writing you early in the new year and I wanted to share my perspective on the Chicago real estate market for 2022 and my thoughts for the rest of 2023.

2022 got off to a strong sales start with interest rates staying relatively low, while post-Covid job recovery continued to ramp. However, the summer started showing signs of rising inflation, while interest rates have continued to rise throughout Q3 and Q4. Home owners were also hit with significant increases in property taxes.

As a result, nearly 40 percent of Chicago-based sales contracts were cancelled this year and 62 percent of homes sold below asking price in November. In addition, Chicago rental prices increased steadily throughout the year, but there is recent evidence of the market cooling.

Here are some further observations on 2022:

·      Sales prices have were not drastically affected

·      Many buyers, especially 1st-time buyers requiring mortgage loans, pulled back from purchasing a home as they monitor interest rates

·      Cash buyers were in a strong position to step forward to obtain the most desirable properties

For the rest of 2023, I predict that the economy will show strong signs of recovery, with mortgage rates falling based on a coming reduction in inflation and increasing consumer confidence. This should lead to another strong sales market in Q2 and beyond.

On a personal note, In my 2nd year in my role as Vice President of Sales for High Fidelity Realty I was recognized by the Chicago Association of Realtors as a top-producing agent in 2021 and was just recognized as top-producing agent for 2022, as well. In 2022, I worked with my team on the sales of nearly $8 million dollars while helping nearly (80) rental clients find a new apartment.

Having lived on Chicago’s north side for many years, I continue to work with a large variety of condo, single-family home, multi-unit investor and leasing clients. I’d like to think that my strong market-knowledge and negotiation skill-set helps my clients easily navigate the nuances of real estate in Chicago’s varied neighborhoods.

Please reach out to me for any questions you may have related to the real estate market. With more than 10 years of direct real estate experience, my broad network of industry professionals are available to add additional expertise on anything from property management to mortgage lending and preferred-contractor recommendations for repairs or renovation needs.

Thanks very much for reading.

Brett Murphy, High Fidelity Realty