Is 2022 a good time to buy and sell in Chicago? Here are our best predictions

2022: what do you have in store for us?! It seems that the wild ride we have been on the past few years shows no signs of stopping! Today I am sharing my predictions for the 2022 real estate market. 

Virtual is here to stay

Omicron has made it abundantly clear that virtual meetings are going to be a necessary part of 2022. For real estate that means we will continue to do virtual client meetings and the option for virtual showings – at this point we have both down to a science! I would advise anyone looking for a real estate broker to check on their willingness and expertise in virtual business. 

Move-in ready space is at an all-time premium

With many businesses postponing their return to office plans, space is still the number one feature buyers are looking for. Space can come in all shapes and sizes: bigger rooms, separate home offices, outdoor space – all of it is good and attractive to buyers. 

We have seen the move-in ready trend evolve over several years and it seems to only emphasize with time. Chicagoland buyers want move-in ready! No one wants to deal with the current supply chain issues or finding a vendor with time on their calendar. Anything sellers can do to enhance their home prior to listing is hugely beneficial. 

Rates are increasing sooner than later

The Fed has announced their intention to raise rates potentially up to ¾ of a point, and it may happen sooner than later. After the first rate increase buyers will scramble to buy as soon as possible. If rates continue to increase, buyers start affording less, and many decide to wait. As a result, prices begin to plateau. This makes the spring market more important than ever this year.

Anticipated market seasonality 

Omicron has already magnified the itch to move. Spring market has started, and we see not enough inventory and pent up buyer demand. I predict our spring market this year will be very strong through April/May. Summer will then be slower, and how slow will depend on the rates. 

City versus suburban markets

I anticipate that interest in the suburbs will continue to be strong. City interest will be seasonal, with the strongest market in the spring. 

Overall, my main piece of advice is if you are thinking of buying or selling to start the process now. For buyers, get in the mix before rates go up. You will also have the most variety of choice throughout the whole year if you start looking soon. For sellers, I also recommend selling this spring before rates go up, which inevitably impacts prices – at least in the city. Please reach out anytime with questions!