ELGIN, IL—How will the Chicago-area housing market behave in 2018? An informal survey of some leading RE/MAX brokers suggests it won't experience radical change, and should be buoyed by an economy enjoying solid rates of growth and job creation. Although local conditions vary, brokers from the Elgin, IL-based company identified several trends likely to have a broad impact on the 2018 residential market in the Chicago area.

First, many say the market won't slow down as much as it normally does in December and January unless exceptionally cold weather discourages buyers.

“I anticipate a steady stream of activity this winter, helped by low interest rates, and a good number of buyers concerned about higher prices next spring,” says Kim Keefe of RE/MAX Plaza in Woodstock. “Plus, we are seeing more job-related moves thanks to increased hiring.”

And Cherie Smith Zurek of RE/MAX Unlimited Northwest in Lake Zurich, tells sellers who take their home off the market for the holidays to list it again no later than the second week of January. “The market does slow, especially at Christmas, but not as much as it once did. With inventory low, buyers won't wait long.”

Throughout 2017, the data show home prices in the Chicago region steadily increased. From Jan. 1 to Nov. 15, the median sales price of a home in the seven-county metro area was 5.8% higher this year than last. And RE/MAX brokers project a similar result in 2018.

“Prices rose noticeably during the first half of 2017, but then we saw real pushback from buyers,” says Bryan Kasprisin of RE/MAX Ultimate Professionals in Shorewood. “Buyers today can easily access detailed pricing data, and they use it. They know what happened to housing values a decade ago and don't want to overpay.”

The supply of homes partially dried up in 2017, but RE/MAX brokers say many suburbs have a surplus of luxury homes, and not enough listings of $400,000 or less.

“We've seen about a 10% decrease in inventory over the last 12 months, which has created a shortage of homes, especially in the moderately priced and entry-level segments of the market,” says Paul Wells of RE/MAX of Barrington.

And that lack of selection often poses a double challenge for buyers, according to Matt Boemmel of Chicago's RE/MAX Exclusive Properties. “Buyers can have a hard time finding a home that fits their needs, but even if they do, they may feel they haven't looked at enough homes to make a good choice. So, rather than buy, they wait, which is too bad because there are good values available now that are likely to cost more in spring.”

Another recent trend that intensified in 2017, notes RE/MAX brokers, was buyers' strong preference for properties in move-in condition.

“A majority of buyers today want homes that are either updated or remodeled,” says Barry Gaw of RE/MAX 10 in Oak Lawn. “No one wants to do any work. Either they don't have the cash to remodel, or their lives are so busy they don't have the time.”

According to Rita Neri of RE/MAX Premier Properties, Chicago, moderately priced homes are “flying off the shelves if they're in good shape and competitively priced. That's why painting and staging the interior is so important. Everyone shops for homes online. If they don't like what they see there, they won't bother visiting the property.”

Finally, the large suburban homes so popular 10 or 15 years ago are attracting fewer buyers. “People are less interested in McMansions with $18,000 tax bills and all the maintenance,” says Neri. “Move-up buyers today usually prefer homes of 2,500 to 3,000 square feet.”

Cindy Banks of RE/MAX Cornerstone in West Chicago believes the lack of interest in large homes reflects the lifestyle choices of buyers now in their 30s and 40s. “They prefer spending on other things, such as travel or technology, rather than a big house. They're also less inclined to buy houses suited for entertaining large groups, choosing to socialize at venues outside the home.”

Instant Insights /

Economy Will Buoy Housing Market in 2018

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