December 2022 Market Update // 2023 Predictions
HERE'S YOUR NORTHERN ILLINOIS DECEMBER 2022 MARKET UPDATE
McHenry County: We saw a 20% decrease in number of homes sold month over month, and a 37% decrease compared to December 2021.
Lake County: We saw an 20% decrease in number of homes sold month over month, and a 39% decrease compared to December 2021.
Cook County: We saw an 8% decrease in number of homes sold month over month, and a 41% decrease compared to December 2021.
2022 was a wild ride in real estate, starting with record low rates and unpreceded demand, to rapidly rising rates and uncertainty. What has stayed consistent is the need for housing. Despite the changes over the past year, demand continues to outpace supply. Average days on market is increasing, but average sales price continues to rise for most areas.
Here is what experts predict for the year ahead:
1. Mortgage rates will be heavily impacted by inflation. If inflation is high, mortgage rates will be as well. But if inflation continues to fall, mortgage rates will likely respond. While there may be early signs inflation is easing as we rounded out 2022, we’re not out of the woods just yet. Inflation is still something to watch in 2023.
2. Home prices will be defined by supply & demand. Expert forecasts vary, with some calling for slight appreciation and others for slight depreciation.
If you have any questions, just let me know. Let's make 2023 a great year!
*Data provided by MRED (Midwest Real Estate Data) MLS