Home sales declined and prices increased in the Illinois housing market in 2022 as mortgage rates rose. For example, 16,194 homes were sold in Illinois in May 2022, a 10% decrease from the previous year. Also, in May 2022, there were 11,641 homes sold in the nine-county Chicago region, which is a 10.6% drop from 2022.
What does the market hold for 2023? Keep reading to learn about the Illinois real estate market forecast for next year. Then, speak to an Illinois real estate lawyer at Covert Marrero Covert, LLP if you have a real estate question.
Housing Market Forecast For Illinois In 2023
Zillow reports that the median value of Illinois homes is approximately $267,000. The value of homes in Illinois has risen by almost 12% in the last year and 27% over the last 24 months. Home prices in the Chicago area will drop by approximately .9% in 2023. Here are some additional housing predictions for the Illinois housing market next year:
- Malcomb, Illinois: 3.3% drop in home values by August 2023
- Galesburg, Illinois: 2.8% drop in home values
- Jacksonville, Illinois: 28% drop in home values
- Taylorville, Illinois: 2.8% drop in home values
- Charleston, Illinois: 2.7% drop in home values
- Sterling, Illinois: 2.6% drop in home values
- Danville: 2% drop in home values
- Pontiac, Illinois: 2.6% drop in home values
- Peoria, Illinois: 2.3% drop in home values
Illinois Listed As a Best State To Live In
While home prices will generally decline in Illinois in 2023, this reflects the trend occurring throughout the country during a time of high-interest rates.
WalletHub recently found that Illinois continues to be one of the best states in which to live. The 2021 survey found that Illinois is the #18 state to live in. It was rated as #3 in quality of life, #8 in safety, and #20 for education and health.
Also, statistics show that population and household growth lead to a boom in housing demand. A survey by the US Census found recently that the population of Illinois may be undercounted by up to 2%. So, population growth in Illinois could be higher than the statistics show. While house prices are dropping in Illinois for 2022 and 2023, this is mostly because of rising mortgage and inflation rates.
In the future, prices of homes in Illinois should rise again as inflation and mortgage rates drop. It could be a good time to buy a home in Illinois because of the reduced price growth in 2023. If you have a real estate transaction to consider next year, be sure to have it reviewed by a qualified real estate attorney.
Contact An Illinois Real Estate Lawyer Today
Whether you have a short sale, foreclosure, or other real estate action, the Illinois real estate lawyers at Covert Marrero Covert, LLP can help you. Please contact us today at (630) 717-2783. Our attorneys also serve the communities of Warrenville, Naperville, Joliet, and Schaumburg.