Do you plan to buy or sell a home in Chicago sometime in 2016? Then keep reading. We have compiled a variety of housing predictions for the Chicago real estate market in 2016. This will give you a sense of where the market might be headed over the next year or so. Without further ado, here are some Chicago housing forecasts and predictions for 2016:
Predictions for the Chicago Housing Market in 2016
You can’t talk about the residential real estate market without discussing home prices. They two go hand in hand. Here’s the good news. Home prices in the Chicago metro area are expected to continue moving north in 2016, as they did through 2014 and 2015.
But the gains might be smaller, due to a better balance of supply and demand. This is the general consensus among many housing analysts and economists, some of whom are cited below.
In fact, we are beginning to see some signs of “price cooling” already in the Chicagoland area. The widely cited S&P/Case-Shiller Home Price Index reveals smaller year-over-year gains for this real estate market. From June 2014 to June 2015, for example, the average price for homes in the Chicago housing market rose by 1.4%. That was the smallest year-over-year gain recorded since December 2014.
The economists at Zillow are also making more conservative predictions for the Chicago real estate market in 2016. When this page was last updated, in September 2015, Zillow’s economic team was predicting a 12-month home prices increase of 3.6%. That’s half the amount house values rose over the previous 12 months (7.2%). So here again, we have a Chicago housing market forecast that calls for a more gradual rise in prices through 2016.
But we’re not talking about a plateau here. It’s unlikely that Chicago home prices will “flatline” or fall during 2016. All indicators seem to suggest that house values in the area will continue rising next year. But some experts are predicting a slower rate of appreciation compared to 2015.
According to the Bureau of Labor Statistics, the unemployment rate in Chicago fell to 5.7% in August 2015 (projected). That’s the lowest it has been all year, and a vast improvement over the nearly 11% jobless rate seen in 2009. This puts more people in a position to buy a home, which increases demand for housing and bolsters property values.
Bottom line: Most forecasts for the Chicago housing market in 2016 call for additional home price gains. But those gains could be smaller than what we’ve seen over the last year or so. Additional job gains could increase demand for homes throughout 2016, while inventory will likely remain steadier by comparison. All of this could put (continued) upward pressure on home prices.
Disclaimers: This page contains Chicago real estate forecasts and predictions for 2016. Such forward-looking statements were provided by third parties not associated with this website. The publishers of MetroDepth make no claims, guarantees or assertions about the Chicago housing market.
What’s Your Real Estate Forecast?
Are you a Chicago real estate professional? Do you have a keen sense of what the market is doing right now, and where it might be headed in 2016? If so, we want to hear from you. We welcome knowledgeable insight from local real estate agents, home builders, or anyone else who can offer a fact-based Chicago housing market forecast.
You can share your real estate insight and predictions by using the comment box below.