Before the Iran war, Alonzo Abron Jr., managing broker and owner of Oak Forest-based A. Progeny Global, had positive expectations for the housing market. However, uncertainty now prevails due to rising costs of living and interest rates since the war began. Abron, an experienced agent in the south suburbs, notes how increased gas prices and job losses impact the market.
Lutalo McGee, president of the Chicago Association of Realtors, anticipates more sellers will enter the market to benefit from rising home prices. Many homeowners locked into low mortgage rates during COVID-19 may now consider selling. Global events contribute to the market’s uncertainty and inflation.
The housing market in the south suburbs and the larger Chicago area remains challenging. According to Geoff Smith, executive director of the Institute for Housing Studies at DePaul University, inventory remains tight, and Illinois has one of the slowest inventory recoveries in the country post-pandemic.
Andretta Robinson from the Titan Group at Re/Max 10 observes more homes priced below $300,000 entering the market, but many need updates or are distressed properties. Robinson notes the volatile economy results in unsustained upticks in housing inventory and sales.
“Inflationary factors are affecting the cost of housing, building new homes, and improving existing ones,” said Smith.
High mortgage interest rates reduce buyers’ purchasing power. The average 30-year fixed-rate mortgage was 6.51% last week, up from 6.36% the previous week, according to Freddie Mac. Robinson states that this affects buyers’ capabilities, as seen with Abron’s client who had to adjust her budget due to rate changes.
DePaul’s Institute for Housing Studies reported a 0.3% decrease in closed single-family home sales in April year-over-year. Prices rose almost 5%. Statewide sales dropped 0.5%, with prices rising by 7.4%. The Institute projected a 5.1% increase in sales and a 5% price rise for the Chicago area in 2026, based on data prior to the war.
In Cook County, most submarkets saw price increases except for Calumet City/Harvey, where prices declined 1.2%. On average, prices rose by 4%, with notable increases in Oak Lawn/Blue Island and Oak Forest/Tinley Park.
Abron highlights the benefits of the south suburbs, including affordable housing and development potential. While high property taxes are a concern, the region remains accessible and less costly compared to others.
When asked about the timing for buying a home, Abron advises considering personal goals and capabilities due to the competitive market and lack of inventory. He recounts a recent sale where a home attracted an offer within a day. Seller Michele Andrews experienced strong interest, receiving ten offers after an open house.
Joni Bradley-Scott from Keller Williams Preferred Realty, and Andrews’ daughter, emphasizes the housing market’s resilience despite economic challenges. Life events drive housing decisions, and open communication with clients is essential to navigating the market.
Bradley-Scott prioritizes helping clients understand market dynamics to make informed decisions that align with their circumstances.
Francine Knowles contributed to this analysis.
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