Expectations for the housing market indicate a slower year than the breakneck pace of 2020-2021. CoreLogic, the real estate think-tank, recently published its Home Price Index (CoreLogic HPI™) Report that forecasts a 5.6% price increase from April 2022 to April of 2023. In the last year average prices increased nationally 20.9% and 7.1% in the Chicago area. Year on year home sales in Chicagoland are up 13%.
Consumers are concerned about housing affordability and rising interest rates as the Fannie Mae Home Purchase Sentiment Index decreased by 4.7 points to 68.5 in April. Mortgage applications for purchases fell 4% in May, indicating a slowing market. But the lack of supply is still driving up prices. Market conditions have spurred buyer demand as 70% of US homes sold this spring sold for more than the asking price. Buyers anxious for a place to live are aggressively shopping for homes.
Inflationary pressures from housing and energy cut Gross Domestic Product by -1.4% in the first quarter of 2022 and the Conference Board is still forecasting 2.1% overall growth for 2022. Employers added 390,000 jobs in May, slightly fewer than previous months, but still the 17th straight monthly gain. The unemployment rate is historically low, at 3.6% nationally and 4.1% in the Chicagoland area.
Market uncertainty underlines the need to work with an expert. You can count on my experience and market knowledge to guide you to a successful result, whether you are buying or selling. Call us today for a free, no-obligation analysis of your real estate needs.