Q: What are the biggest issues facing sellers right now?
A: Some Chicago neighborhoods are seeing a bit of an easing on price increases. It’s not quite a buyer’s market just yet, but I see the price inflation slowing down. At the end of last year, the market had a brief pause and a lot of listings took significant price reductions in order to sell. This year, people are mindful of that and not taking quite as an aggressive approach when pricing their properties.
“It’s so important to do the calculations on Chicago’s high property taxes. Many new buyers don’t pay close enough attention to that in the equation.”
Q: What issues are buyers facing?
A: People always talk about interest rates and the are concerned about the impact on affordability. Another often overlooked factor I see are increasing property taxes. They continue to go up. It’s so important to do the calculations, and many new buyers don’t pay close enough attention to that in the equation. Our property taxes are among the highest in the nation in Chicago. There is no question that it is limiting home-pricing potential.
Q: What neighborhood do you see as being on the rise in Chicago?
A: A lot of people still want to be in or near Logan Square. We’re seeing good activity on some of those western boundaries and south in and on the border of Humboldt Park due to affordability and proximity to Logan Square and all its growth. People are getting priced out in the eastern and central portions, so builders and buyers are expanding their radius.