Lots to unpack here but Illinois has 61% less housing inventory than pre-pandemic levels. This map shows the change in active housing inventory for sale from October 2019 to October 2024 across various U.S. states, with Illinois seeing a significant drop of 61%. We're still selling houses and my numbers have been steady for 3 years which is a success story when statistics like this come out.
For people in Illinois, this decrease in housing inventory implies a few key points:
1. Tighter Housing Market: With 61% fewer homes available for sale compared to pre-pandemic levels, buyers in Illinois face increased competition, which could drive up prices and make it more challenging to find affordable homes especially in the busier spring market.
2. Potential Price Increases: Limited inventory often leads to price increases, benefiting sellers but creating obstacles for first-time buyers or those looking for affordable options. With fewer homes for sale, buyers with smaller down payments have a harder time competing with move- up buyers who have equity as a down payment.
3. Seller Advantage: For those looking to sell in Illinois, this may be an advantageous time, as the scarcity of homes on the market could lead to quicker sales and possibly higher offers. However, the market is not as hot as it was a few years ago and sellers cannot expect to see multiple offers (we just need one!), home inspection waivers, and appraisal gaps like we did a few years ago.
4. Impact on Renting: Fewer homes for sale can also push some would-be buyers into the rental market, potentially driving up demand and prices in rental housing.
In summary, for people in Illinois, the limited housing inventory means a competitive market with higher prices, benefiting sellers but presenting challenges for buyers, especially first-time or lower-budget buyers. But higher interest rates and economic uncertainity have limited the number of buyers entering the market which is creating a more balanced market.
