2018 Housing Market Trends You Need To Know

blog post June 28, 2018

As we approach the midway point of 2018, it’s time to shine the spotlight on housing market trends. What’s different and what remains the same? How will the 2018 housing market compare to 2017? Baird & Warner CEO, Steve Baird sets the record straight. In short, the 2018 market is shaping up quite similarly to 2017. Baird attributes this to strong consumer confidence, good inventory, low interest rates, and low unemployment. The market is fairly balanced today, he says, and notes these current trends:

More Migration Back Into Cities
With an influx of new construction and corporate headquarters relocating into metropolitan areas, young professionals are moving into city neighborhoods. At the same time, older homeowners and retirees are migrating downtown to live in more vibrant areas.

New Construction is Hot
Home buyers want new construction more than ever. They are passing on older houses and  the problems that accompany them–chief among them, maintenance issues–in favor of new homes with more open floor plans, great rooms, exercise areas, media rooms, and updated garages

The High End of the Market Remains Slower
This is due to too much inventory, which Baird says isn’t necessarily a bad trend because it’s creating balance.  “When it gets too unbalanced on either the seller or buyer side, it makes transactions harder to happen,” he says. “The seller wants too much money, and buyers are too demanding, and that slows the market down.”

18 Markets in Chicagoland are Performing Better than 2017
Apart from Baird’s trends, Crain’s reported that in six Chicago neighborhoods and 12 suburbs, homes are selling at a greater volume, at higher prices, and faster, on average, than they were in the first quarter of 2017. The city neighborhoods include condos, townhouses, and houses in Calumet Heights, Gage Park, West Ridge, Grand Boulevard, Kenwood, and Lincoln Square. The suburbs are represented by:

  • Antioch
  • Bartlett
  • Elk Grove Village
  • Elmwood Park
  • Forest Park
  • Glen Ellyn
  • Lake Bluff
  • Rolling Meadows
  • Skokie
  • Wheaton
  • Willowbrook
  • Wood Dale

Conclusion
With no breaking news in 2018, the housing market thus far is closely mirroring 2017. Some differences point to an increase in city-living, a preference for new construction, and a slowing down of high-end residential transactions. The micro level tells another story with an improvement in several Chicagoland neighborhoods.


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