Why timing is absolutely crucial in Chicago’s current real estate market

We are in uncharted Chicago real estate market territory. In normal years, there are aspects of the market that we can depend on: spring will be our busiest time of year, it always starts earlier than you think (end of January!), and we will see another uptick in activity at the tail end of the summer. During busier times, sellers can get up to 5% more versus selling in the off-season. For example, an $825K home in the spring market we have seen sell for $770K in an off market – a 7% difference in that of case. 

The current market
This year, the market is changing on a weekly basis. We saw an incredibly busy winter and spring market for most types of product, but not all. Many anticipated that the uptick in activity would continue on through the summer, but so far that prediction hasn’t 100% proved out. Currently though, what we see is that now that people are vaccinated, they are spending the summer having fun instead of looking for real estate (I guess not everyone thinks looking for real estate is fun!). 

Micro activity bursts
What does this volatility mean for sellers in particular? It means that timing is everything. The frenzy mentality is lessening, and the demand is decreasing because there are less buyers aggressively looking. Buyers who were actively looking earlier in the year have lost steam (maybe they lost in multiple offers), and are taking a break. Because my team and I are living and breathing the market every single day, we are able to spot these micro-bursts of activity. Over the past several weeks we have successfully paced out our listings to capture buyer activity in certain neighborhoods. 

Our predictions for the near future
In the very near-term, we anticipate the last week of June to be crickets. With Chicago Public Schools last day of school on June 22, people will be out spending time with their kids. It is these sorts of totally unrelated events that can have a huge impact on the market and a property’s ability to attract buyers. 

We also anticipate that with the uptick of activity and people returning to offices downtown, there will be more demand than there has been for the past several months. 

And lastly, we are counting on our typical late-summer uptick in activity. There is discussion of rates increasing, which usually also creates an uptick in demand from buyers who want to buy before the rate increase. 

All of that to say, every single property is a unique situation. When we say we create custom marketing plans for every listing, we truly mean it! If you are considering selling, definitely get in touch now so that we can start formulating a strategy plan that will help achieve your goals.