The number of homes going under contract increased sharply last month in Chicago.
Contracts increased nearly 28 percent compared to the previous year, and the surge caught many agents by surprise, especially after slow activity in the two previous Novembers, Crain’s reported.
The late-season boom is being attributed to a mix of favorable conditions, including post-election optimism, stable interest rates and warm weather that made house-hunting more enjoyable.
The prevailing rate on a 30-rate mortgage is sitting at about 6.7 percent.
“People have gotten used to interest rates in the sixes and low sevens,” said Mario Greco of Compass. “A year ago, they were still shocked at the spike in rates. Now they’re not waiting around for a drop that isn’t coming.”
Almost 9,500 homes went under contract in the four weeks ending Dec. 2, according to Midwest Real Estate Data. That represents the largest increase in homes under contract since 2021, when the market was still feeling the effects of the pandemic-era housing boom.
In Democrat-heavy Chicago, homebuyers weren’t necessarily optimistic about Donald Trump’s win, but they might’ve been relieved the election was over anyway.
“I think a lot of people were holding their breath because of the election,” said Alley Ballard of @properties Christie’s International Real Estate agent. “Mostly, they feel that it’s settled, time to get other things on their list done.”
Many expected the post-election period to be slow, but the uptick could be due to buyers’ desire to finalize purchases before the holidays, ensuring they are settled before the new year.
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The market conditions in the Chicago area contrast sharply with national trends. Redfin reported a nationwide increase of 12.1 percent in new contracts over the same period. This discrepancy suggests that local factors, such low inventory, are contributing to the unique local market conditions.
— Andrew Terrell