With Governor Pritzker’s recent lift of the stay-at-home order into Phase 3, the residents of Chicago have witnessed a tangible change in consideration of business operations. It comes as no surprise that although cautious, businesses have been positively adapting to the climate and developing adjusted operations in order to continue to meet their customers when and where they need it most. This is a good thing for our economy. In fact, according to The Wall Street Journal’s amended forecast, the U.S.’s jobless rate fell to 13.3% in May, resulting in a loss of 2.5 million jobs against their projected 8.3 million. Unemployment rates are stabilizing, reassured by the US Labor Department in The Wall Street Journal, reporting a decline in unemployment claims. In sum, the economy and its people are resilient, our jobs and the marketplace have seen pliancy and is continuing to benefit from the quick adaptations of small and large businesses alike.
The real estate market is no stranger to this buoyancy. The Real Deal reported an increase in home buying applications – numbers not seen since January. Despite rumors of hesitancy, the Mortgage Bankers Association confirmed a reported index rise by 5% last week, and 13% for the year over. “That rounds out eight consecutive weeks of growth and marks a new high in adjusted purchase activity for 2020.” This tangible upward trend is no secret at Fulton Grace Realty. In fact, the market remains relatively strong and is quickly rebounding despite the early spring’s dip in activity due to COVID.
New property listings are added daily ensuring the marketing is optimal for sellers and the month’s supply is strong – which is a positive for projecting longevity both in the market and in consumer interest. The month’s supply is important because this number tells you how many months it would take for all the current homes for sale on the market to sell, given a monthly sales volume. Four to five months of supply is average. A lower number means that buyers are dominating the market and there are relatively few sellers; a higher number means there are more sellers than buyers. Selling price points seem to be holding steady compared to 2019, ensuring sellers that despite the economic uncertainty within our country, property values have generally not been diminished.
Looking ahead, many news sources are already reporting pent-up demand from buyers coupled with the city’s Phase 3 allowances, a hungry market is likely to emerge. Another driver for a stronger third quarter is Millennials with families wanting to settle in new homes before the school year begins. Regardless if you are a buyer or seller, we are all understandably cautiously optimistic, but taking solace in the encouraging reports that suggest swift recovery ahead. As Forbes perfectly summarized, the [government’s] aggressive stance to protect the health of our economy will likely result in high levels of bank lending with continued lower interest rates. That, too, should stimulate the housing market entering 2021, thus assembling a promising decade ahead.
WHO IS FULTON GRACE?
We are one of Chicago’s leading providers of comprehensive real estate services. We are home to an ever-growing team of savvy & reputable local realtors, seasoned property managers, and customer-service oriented staff. Whether you’re looking to find a new home, sell your home, or have your property managed, let us be your trusted real estate advisors.