We are now more than a decade past the 2008 housing crash, which affected the value of homes across the United States. Thankfully, the housing market is healthy again, and Illinois home values are strong. In Chicago and the surrounding areas, inventory can hardly keep up with the demand! We’re well into 2019 now, but here’s what you can expect for the housing market this year.
A New Generation of Homebuyers
Generation Z, or “Gen Z” as it’s more commonly called, refers to the generation that comes after the Millennials (starting birth years mid 1990’s to mid 2000’s). The oldest members of Gen Z will turn 24 this year and begin entering the housing market. The idea is that this generation is more fiscally aware than Millenials, and have already began to plan for housing and retirement. Being this aware puts them in a better place for buying a home at a younger age than we saw in Millennials.
Inventory Should Increase
Though inventory is low in some areas of Illinois, particularly Chicagoland, the shortage is beginning to resolve. This trend is expected to continue in 2019, with more homes becoming available in the coming months. It is still a seller’s market, but we should see a slow shift to a more even market.
Smaller Homes are Still Desirable
As more inventory becomes available, larger homes are expected to stay on the market longer than smaller, more affordable homes. Millennials and Gen Z buyers are known to be more sensible about their starter home than previous generations, and also enter the housing market already saddled with considerable debt. This makes purchasing a smaller and more affordable home appealing, leaving the bigger homes sitting on the market until sellers lower prices to remain competitive.
Home Value Will Continue to Grow
Despite possible cost-slashing on large luxury homes, Illinois can expect median home prices to continue to grow in 2019. Illinois home sales are expected to experience overall positive gains, thanks to the growth of regular sales in the Chicago area.
Contact Sandy Majetich-Toth today at 815-791-2215, Coldwell Banker – The Real Estate Group, 925 Illinois Route 59, Shorewood, IL for help with searching for a new home, selling your current property, and to experience service that only an experienced REALTOR® can provide.