Illinois continues to move into a more “normal” real estate market and as it does, home prices and sales are expected to experience positive gains in 2016.
But these gains will be at a more moderate pace than last year, according to the 2016 annual forecast from the Regional Economics Applications Laboratory (REAL) at the University of Illinois.
A number of economic factors will affect housing in 2016, including lingering state budget issues, a slower U.S. economy and higher interest rates, but the market is expected to experience positive gains, says REAL Director Geoffrey J.D. Hewings.
“The housing sales and price forecasts for 2016 for both Illinois and Chicago are still positive, but within smaller ranges month-to-month than those experienced in 2015.”
Download a copy of REAL’s “Housing Price Forecast, 2016 – Illinois and Chicago MSA” for additional charts and analysis. Here are some of the highlights:
- Median home prices are expected to grow in 2016, but at a narrower pace. On a year-over-year basis, price gains will range from 3.1 to 7.4 percent for Illinois and 3.5 to 9.5 percent for the Chicago PMSA. By December 2016, the median price of homes is forecast to be 5.0 percent higher in Illinois and 5.9 percent higher in the Chicago PMSA.
- Home sales are forecast to experience positive gains in most months with milder rates and a narrower range than 2015. For Illinois, that range could be -1.19 percent to 9.11 percent. For the Chicago PMSA, the forecasted range is -1.06 percent to 4.22 percent.